How Long Should You Keep Your Tax Records? A Practical Guide for Canadians

When it comes to tax season, most people focus on filing — not on what happens after. But keeping your tax records organized and stored for the right amount of time can save you stress, money, and potential penalties down the road. As accountants, we’re often asked the same question: “How long should I keep my tax records for?”

Let’s break it down in a simple, practical way.

Why Keeping Tax Records Matters

Tax records aren’t just paperwork — they’re proof. If the Canada Revenue Agency (CRA) ever reviews or audits your return, these documents back up the numbers you filed. Without them, you could face reassessments, interest, or delays in resolving issues.

Good record‑keeping also helps you:

• Track deductible expenses

• Support claims for credits

• Prepare future returns more easily

• Provide documentation for loans or financial planning

The General Rule: Keep Records for 6 Years

In Canada, the CRA requires individuals and businesses to keep tax records for six years from the end of the tax year they relate to.

For example: If you filed your 2024 tax return in April 2025, you must keep those records until December 31, 2031.

This six‑year rule applies to:

• Personal tax returns

• Business income and expense records

• Rental property documentation

• Receipts for deductions and credits

• Medical and childcare receipts

• Donation receipts

• T4s, T5s, and other slips

When You Should Keep Records Longer

There are situations where the six‑year rule doesn’t apply — and you’ll want to hold onto documents longer:

1. If You File Late

The six‑year clock starts from the date you actually file, not the year the return was due.

2. If You Amend a Return

Any adjustments restart the six‑year retention period for the affected documents.

3. If You Have Business or Corporate Records

Corporations must keep certain records indefinitely, including:

• Articles of incorporation

• Shareholder registers

• Minutes of meetings

4. If You Have Capital Property

Keep records related to:

• Real estate

• Investments

• Business assets

…for as long as you own the property plus six years after you sell it, since they determine capital gains or losses.

5. If the CRA Requests Your Records

Never destroy documents if the CRA has asked to review them — even if they’re older than six years.

Digital vs. Paper: What the CRA Accepts

Good news: the CRA accepts digital copies of your tax records as long as they are clear, readable, and stored securely.

This means you can scan receipts, store PDFs, and keep cloud backups — just make sure they’re accessible if the CRA asks for them.

What Happens If You Don’t Keep Your Records?

If you’re missing documentation during a review or audit, the CRA may:

• Deny deductions or credits

• Reassess your return

• Charge interest or penalties

It’s always better to keep more than you think you need.

Tips for Staying Organized

• Create a dedicated tax folder for each year

• Use cloud storage for digital backups

• Keep business and personal records separate

• Review your documents annually and safely dispose of anything past its retention period

Need Help Organizing or Understanding Your Tax Records?

If you’re unsure what to keep, what to toss, or how to prepare for tax season, you’re not alone. Many Canadians feel overwhelmed by record‑keeping — and that’s exactly where a trusted accountant can make life easier.

We help individuals, business owners, and families stay compliant, organized, and confident with their taxes. If you’d like personalized guidance or support, we’d be happy to help.