January 22, 2026

How Long To Keep Tax Records In Canada

keep tax records in Canada

Filing your taxes and keeping your records are two separate things. Keeping the tax records safe and organized always helps you in the long run. A lot of Canadian taxpayers have a common question: How long do I need to keep my tax records in Canada?

In this blog, we’ll answer that question. The Canada Revenue Agency (CRA) has different record-keeping rules, and whether you are an individual, a self-employed professional, or a business owner, you need to follow these guidelines. Find out what documents you need to retain and what happens if you discard them too early.

Why Is It Important To Keep Tax Records?

You might not be aware, but the CRA has the right to review and audit your tax returns years after you have filed them. And for that, you need to be prepared with all the documents ready. You would have to show them documents supporting your income, deductions, and credits that you have claimed. That’s why it is recommended that you keep tax records safe even after years of filing them.

Keeping tax records helps you –

  • Prove your income and expenses
  • Support tax deductions and credits
  • Avoid penalties and interest
  • Protect yourself if there is any dispute with the CRA

In simple words, it can be said, no records = no proof. So, keep the records safe.

CRA Rule – How Long To Keep Tax Records In Canada?

It is recommended by the CRA that, in most cases, the tax records should be kept for at least 6 years.

The 6 – Year Rule

You must keep your tax records for 6 years from the end of the tax year that the records relate to.

For example, if you filed your tax return for 2023, then you must keep the tax records until December 31, 2029.

So, whether you file your tax return on time, late, or amend your return later, this rule is applicable in all scenarios.

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What Tax Records Should You Keep?

Tax records have various documents that support the information on your tax return. These can be in paper or digital form. It can get overwhelming to keep all of them safe, and in a lot of cases, people don’t know what the important supporting documents are that you need to keep with yourself.

Common Personal Tax Records

  • T4, T3, T5, and T4A slips
  • Notices of Assessment and Reassessment
  • RRSP contribution receipts
  • Medical expenses receipts
  • Childcare expense receipts
  • Tuition and education receipts (T202)
  • Moving expense records
  • Donation receipts
  • Investment statements and capital gains documents

Business And Self-Employed Records

So, if you are self-employed or are a business owner, you need to keep these additional document records –

  • Sales invoices and receipts
  • Expense receipts
  • Bank and credit card statements
  • Payroll records
  • Mileage logs
  • GST/ HST records
  • Contracts and agreements
  • Asset purchase and depreciation records

How Long Should You Keep Business Records?

Just like for personal records, the six-year rule applies to business records as well. However, there is a slight modification. It starts from the end of the last tax year the records relate to.

There are certain records that you need to keep longer than 6 years, which include –

  • Records about capital assets, like property, equipment, vehicles (It is recommended that you keep them for 6 years after you have disposed of the asset).
  • Shareholder and corporate records (Best to keep them indefinitely).
  • Payroll records (Must be kept for at least 6 years).

If you have any doubt, just keep the records for more time than required. And to get any more clarification on tax filing and documents related to tax filing, you can contact a professional, and who better than Taxccount Canada!

Can I Keep Digital Records Instead Of Hard Copies?

The one question that gets a lot of people confused regarding keeping their tax records is: Should I keep digital copies or paper copies?

Well, the CRA allows you to keep digital records as long as they are –

  • Clear and readable
  • Easy to access
  • Secure and backed up
  • Provided to the CRA in an acceptable form (if requested)

You can easily scan the paper documents and store them in digital format. Just make sure that the scans are accurate and complete. Also, it is not acceptable to lose access to files or corrupted data during an audit.

What If I Don’t Keep The Records Long Enough?

In case the CRA reviews your tax return, and you are unable to provide supporting documents, then –

  • Deductions and credits may be denied
  • Penalties and interest may apply
  • Income may be reassessed
  • You may face extended audits or reviews

In serious cases, if you don’t keep tax records, it may lead to compliance actions by the CRA. To avoid all of these, it is best to keep your records safe and secure.

When Can You Safely Destroy The Tax Records?

Once the retention period is passed, you can safely destroy the tax records. Just make sure to do it safely and securely. Some best practices include –

  • Properly shred all paper documents
  • Permanently delete digital files
  • Ensure that backups are also removed

In case you want to destroy the records before the suggested 6-year period, you must get valid permission from the CRA, which is rarely recommended.

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This is general information only and not professional advice. Consult a professional before acting.