How Long Do You Need to Keep Receipts in Canada? (CRA Rules 2026)

The short answer is six years. But the six-year rule has a starting point that surprises most freelancers, exceptions that extend it further, and a formal process you must follow if you want to destroy records early. Getting any of this wrong can mean denied deductions, CRA penalties, or an audit where you have no records to defend yourself.

This guide breaks down how long every type of business record must be kept in Canada, when the clock actually starts, which situations require longer retention, and what to do if you ever want CRA's permission to destroy records early.

How Long to Keep Tax Records in Canada: The CRA 6-Year Rule

Under the Income Tax Act and CRA Information Circular IC78-10R5, you must keep all books, records, and supporting documents — including receipts — for six years from the end of the last tax year they relate to.

For freelancers and sole proprietors, the tax year is the calendar year. The clock starts on December 31 of the year in question — not the date you filed.

• 2026 receipts → keep until December 31, 2032
• 2025 receipts → keep until December 31, 2031
• 2024 receipts → keep until December 31, 2030
• 2023 receipts → keep until December 31, 2029
• 2022 receipts → keep until December 31, 2028

This covers all records that support your tax return: receipts, invoices, bank statements, contracts, GST/HST returns, payroll records, and CRA correspondence.

How Long to Keep Each Type of Record

Not all records follow the same retention period. Here is a complete breakdown:

Record Type	How Long to Keep	Notes
Business receipts & invoices	6 years	From end of the tax year they relate to
Income tax return (T1/T2)	6 years minimum	Many accountants recommend keeping indefinitely
GST/HST returns & records	6 years	From end of the reporting period
Payroll records	6 years	Includes T4 slips, ROEs, deduction records
Bank statements	6 years	Supporting proof for income and expenses
Contracts & agreements	6 years after expiry	Keep until 6 years after the contract ends
Capital property (home, rental, major equipment)	Indefinitely + 6 years after sale	Needed to calculate adjusted cost base and capital gains
Renovation & improvement receipts	Indefinitely + 6 years after sale	Add to adjusted cost base; keep with property records
Carried-forward loss records	6 years after the year loss is applied	e.g. 2022 loss applied in 2027 → keep until 2033
Records under active CRA audit or appeal	Until fully resolved	No time limit while dispute is open
Corporate records after dissolution	6 years after dissolution date	Two additional years beyond normal period

When Does the 6-Year Clock Actually Start?

This is where most freelancers get confused.

If you filed on time: 2024 return filed April 30, 2025 → clock starts January 1, 2025 → destroy after December 31, 2030.

If you filed late: According to the CRA, if you file your tax return late, the six-year period starts from the date you file — not the end of the tax year.

If CRA suspects misrepresentation or fraud: There is no time limit on how far back CRA can audit. This is rare for honest filers but worth knowing.

Capital Property — The Exception That Trips Everyone Up

If you own a home, rental property, cottage, or made a major equipment purchase, you must keep all records for as long as you own the asset, plus six years after the year you sell it.

Here is why this matters. You buy a rental property in 2019 for $550,000 and spend $60,000 on renovations in 2021. You sell in 2030 for $900,000. Your adjusted cost base is $610,000 — capital gain of $290,000. Without the 2021 renovation receipts, CRA could deny that $60,000 adjustment, increasing your taxable gain and costing thousands in extra tax.

There is no shortcut here. Keep every purchase document, every renovation invoice, and every improvement receipt in a dedicated permanent folder — separate from your annual expense records.

Loss Carry-Forwards — Records Must Follow the Loss

If your business runs at a loss, you can carry it forward to offset future income. The records from the original loss year must be kept for 6 years after the year you apply the loss — not 6 years after the loss year itself.

Example: Business loss in 2022, applied in 2028 → keep 2022 records until December 31, 2034.

If you carry multiple years of losses, track each one separately. The end date follows the application year, not the origin year.

How to Destroy Records Early — Form T137

You cannot delete or shred records before the retention period without CRA permission. If you need to destroy records early, follow this process:

1. Complete Form T137 — Request for Destruction of Records
2. Submit in writing to your local CRA tax services office
3. Wait for written approval before destroying anything

After the standard retention period passes, no permission is needed. Only early destruction requires authorization.

Digital vs. Paper — Both Count

CRA accepts phone photos, scanned PDFs, and original email receipts. The requirements for digital records:

• Image must be a clear and complete reproduction of the original
• All text must be fully legible — vendor, date, amount, GST/HST
• Records must be accessible and producible to CRA on request
• Must be kept at a Canadian residence or place of business (Canadian cloud servers satisfy this)
• At least one backup copy in a separate location
• Photograph thermal paper receipts (restaurant, gas station, retail) immediately — thermal ink fades within 1–2 years, well before the 6-year requirement ends

Important: A printout of a digital receipt is not a substitute for the original electronic file. Keep digital originals in digital form.

What Happens If You Destroy Records Too Early?

Destroying records before the retention period — with or without CRA permission — can have serious consequences:

• Denied deductions — CRA can disallow any expense without receipts
• Penalties and interest — reassessments come with interest from the original due date
• Expanded audit scrutiny — missing records in one area can trigger review of other years
• Criminal liability in extreme cases — deliberate destruction to impede a CRA investigation can result in prosecution under the Income Tax Act

Practical Tips for 6-Year Compliance

• Capture receipts immediately. A photo on the spot beats reconstruction later. The moment a receipt leaves your hand it becomes a liability.
• Organize by tax year. Label folders by year so you always know exactly what can be safely deleted and when.
• Keep property records separately. Capital property needs its own permanent folder: purchase docs, all renovation invoices, eventual sale records.
• Track loss carry-forwards. Note which year each loss was applied so you know the correct end date for those records.
• Back up to at least two locations. Device plus cloud at minimum. A single copy on your phone is not sufficient.
• Set a January 1 calendar reminder. On January 1, 2032 you can delete 2025 records — unless exceptions apply. One annual check keeps everything clean.

Frequently Asked Questions

How long do you need to keep receipts in Canada?

The CRA requires you to keep receipts and supporting documents for six years from the end of the last tax year they relate to. Receipts from the 2025 tax year must be kept until at least December 31, 2031.

When does the 6-year CRA clock start?

The six years runs from the end of the tax year — December 31 for calendar-year filers. If you file late, many accountants recommend starting the clock from your actual filing date since CRA's reassessment period also shifts.

How long must a corporation keep business records in Canada?

Six years from the end of the last tax year they relate to. After dissolution, records must be kept for an additional two years — so six years after the dissolution date.

Can I destroy CRA records before 6 years?

Only with written CRA permission. Submit Form T137 to your local CRA tax services office and wait for written approval before destroying anything.

How long do I keep receipts for a home or rental property?

Keep all purchase, renovation, and improvement records for as long as you own the property, plus six years after the year you sell it. These records establish your adjusted cost base and directly affect your capital gains calculation.

Summary

For most receipts and business records, the rule is six years from December 31 of the tax year. Capital property and loss carry-forwards extend that period further. You need written CRA permission via Form T137 to destroy anything early. Digital records are fully accepted as long as they are clear, complete, and properly backed up. For the full official rules, see CRA's record-keeping requirements.

For what must actually appear on each receipt to satisfy CRA receipt requirements, read our dedicated guide. And for a full walkthrough of how to organize and categorize your business expenses, see our complete guide to tracking business expenses in Canada.