How Long to Keep Receipts: Complete 2026 Retention Guide

That shoebox of crumpled receipts stuffed in your closet? It's more than just clutter. It could be the difference between a smooth tax filing and a stressful audit. But here's the thing: most people have no clue how long to keep receipts, which ones actually matter, or when it's finally safe to shred them.

And there's no single answer. A grocery receipt from last week plays by different rules than the one from your kitchen renovation. Tax documents have their own timeline. Business receipts? Yet another story.

This guide breaks it all down, whether you're tracking personal expenses, running a small business, or just trying to figure out what's safe to toss. You'll get clear timelines based on IRS guidelines, practical organization tips, and a quick-reference chart you can actually use.

The General Rule: Keep Receipts for 3 Years

The IRS standard for most tax-related receipts is three years. That's the "period of limitations," which is just a fancy way of saying it's how long the IRS has to audit you or you have to file an amended return. For the full documentation rules, see our IRS receipt requirements guide.

One important detail: the clock starts when you file your return, not when you got the receipt. So if you filed your 2024 taxes on April 15, 2025, hang onto those receipts until at least April 15, 2028.

This 3-year rule covers most situations:

• Income documentation: W-2s, 1099s, bank statements showing income
• Deductible expenses: Business expenses, charitable donations, medical costs
• Investment records: Stock sales, dividend statements (with exceptions for cost basis)
• Credits and deductions: Education credits, energy credits, itemized deductions

For most people who file accurately and report all their income, three years is plenty. But some situations call for holding onto records longer.

When You Need to Keep Receipts Longer

Not every receipt follows the 3-year rule. Some situations stretch that timeline quite a bit.

6-Year Retention

The IRS gets an extra three years to audit you if you understate your income by a lot, meaning you left off more than 25% of your gross income.

Even if it wasn't intentional, mistakes happen. If there's any chance you miscalculated, especially with freelance work, rental properties, or side gigs, six years gives you better protection.

7-Year Retention

Two specific situations need seven years of documentation:

Worthless securities: If you claimed a loss for stocks or bonds that tanked completely, keep records showing what you originally paid and when they became worthless.

Bad debt: If you wrote off money someone owed you but never paid, hold onto proof of the original debt, your attempts to collect, and evidence it became uncollectable.

Indefinite Retention

Some records you should never throw away:

Property records: Keep documentation for any property, real estate, investments, or business assets until you sell them. After that, hold onto the records for another 3-7 years in case anyone questions your cost basis.

Fraudulent returns or failure to file: There's no time limit if the IRS suspects fraud or you never filed a return. If there's any gray area about past filings, keep those records forever.

Business formation documents: Articles of incorporation, partnership agreements, and similar paperwork? Keep them permanently.

How Long to Keep Receipts by Type

Different types of receipts have different rules. Here's a breakdown by category.

Tax-Related Receipts

Income documentation (3-7 years) Keep W-2s, 1099s, and any proof of income for at least three years. If your income situation is complicated or you're worried about underreporting, stretch it to seven.

Deductible expense receipts (3-7 years) Business expenses, medical costs above the threshold, charitable donations, and other itemized deductions? Keep them for at least three years. Quick note: charitable donations over $250 need written acknowledgment from the organization. If you need to generate compliant documentation, start with the Expense Receipt template or the Itemized Receipt template.

Investment records (life of investment + 7 years) Stock purchase confirmations, reinvested dividends, and cost basis documents should stay in your files until you sell, then stick around for seven more years for capital gains purposes.

Retirement account contributions (permanent) IRA and 401(k) contribution records, especially nondeductible contributions, should be kept forever. Form 8606 filings and supporting docs prevent you from getting taxed twice on distributions.

Business Receipts

Sales and transaction receipts (4-6 years) Customer receipts, invoices, and sales docs should stick around for at least four years. Most accountants say six is safer. If you're unsure which document to issue, read our receipt vs invoice guide.

Employment tax records (4 years) If you have employees, the IRS wants you to keep employment tax records for at least four years after the tax is due or paid (whichever comes later). That means payroll records, W-4s, and payment documentation.

Business expense receipts (6 years) Travel, office supplies, equipment, operating costs, keep documentation for six years. These back up your deductions and prove your business is legit. Use an Expense Receipt template or Service Receipt template to keep records consistent, and review business expense categories if you need help sorting costs.

Asset and depreciation records (life of asset + 7 years) Hang onto purchase docs for business equipment, vehicles, and property until you get rid of the asset. Then keep them for seven more years to support depreciation and disposal reporting.

Personal Receipts

Everyday purchases (30 days to 1 year) Grocery receipts, gas receipts, and routine purchases? You can usually toss them after 30 days, once you've checked that your credit card or bank statement matches. Hold onto them longer if you might return something or dispute a charge.

Major purchases with warranties (life of warranty + 30 days) Electronics, appliances, and furniture receipts should stay put for the full warranty period. Give it an extra 30 days after the warranty expires, just in case.

Medical receipts (3-7 years) Medical expense receipts can support tax deductions if you itemize and clear the threshold. Keep them for at least three years, seven if you have big medical expenses.

Home improvement receipts (until property sale + 7 years) Every home improvement, from a new roof to a kitchen remodel, adds to your cost basis and reduces capital gains when you sell. Keep these receipts as long as you own the place, then seven more years after closing.

Vehicle purchase and service records (life of ownership + 2 years) Keep purchase docs, title history, and major repair receipts while you own the vehicle. Hold onto them for two years after you sell, just in case of disputes.

Industry-Specific Receipt Retention

Restaurant and hospitality receipts Business owners should keep customer receipts for four years for taxes. As a customer, you can usually ditch restaurant receipts after checking your credit card statement, unless you're claiming business meal deductions (then 3-7 years). For meal documentation, a Restaurant Receipt template keeps line items clear.

Auto service receipts Keep all maintenance and repair receipts while you own the car. They prove service history when selling and help with warranty claims. A Service Receipt template is a clean way to document labor and parts.

Hotel and travel receipts If you travel for work, keep hotel, airline, and transportation receipts for at least three years when claiming expense deductions. Your company's expense policy might require even longer. For lodging, use a Hotel Receipt template so dates and taxes are easy to verify.

Medical and pharmacy receipts Keep medical receipts for at least three years if claiming deductions. Got an HSA or FSA? Keep those receipts indefinitely since administrators can audit distributions years down the road. If you need to rebuild missing documentation, see what to do when you lose a receipt.

Receipt Retention Quick Reference Chart

The $75 Rule: Which Receipts You Don't Need

Good news: the IRS doesn't require receipts for business expenses under $75. One exception though, lodging always needs a receipt no matter the amount.

For those smaller expenses, other documentation works fine:

• Credit card statements showing the merchant, amount, and date
• Bank statements with transaction details
• Digital payment records from apps or online banking
• Calendar entries noting the business purpose

That said, "not required" doesn't mean "bad idea to keep." During an audit, more documentation is always better. Think of the $75 rule as a minimum, not a best practice.

Also worth noting: this rule applies to individual expenses, not totals. Ten $50 purchases still need substantiation for the full $500 if anyone asks.

State Tax Retention Requirements

Federal IRS guidelines aren't the whole picture. Your state might want you to keep records longer.

States with extended requirements: Many states have retention periods that differ from the federal 3-year standard. For example, some states require 4 or more years for certain records. Requirements vary by record type and may change, so check your state's revenue department website for current guidelines.

Bottom line: When federal and state rules differ, go with the longer one. If you run a business in multiple states, follow the strictest requirement. Consider consulting a tax professional familiar with your state's specific requirements.

State sales tax records often have different rules than income tax records. If you collect sales tax, check with your state's revenue department to be sure.

Digital vs. Paper Receipts: What the IRS Accepts

The IRS accepts digital copies of receipts. You don't need the paper originals as long as your digital versions meet a few requirements:

They need to be readable:

• Clear images
• All text and numbers visible
• Nothing cut off or missing

They need to be accessible:

• Available if the IRS asks for them
• Organized so you can find what you need
• Backed up somewhere safe

They need to be in the right format:

• Standard formats (PDF, PNG, JPEG) work fine
• Must be exact copies, not recreations
• Include all the same info as the original

Here's why digital actually beats paper: thermal receipt paper (what most stores use) can fade over time, especially when exposed to heat, light, or humidity. While fading rates vary based on storage conditions, receipts stored in wallets, cars, or non-climate-controlled areas may become difficult to read within a few years.

For businesses issuing receipts, creating digital receipts from the start eliminates the fading problem entirely. PDF and PNG files stay crisp forever. If you need a walkthrough, our itemized receipt guide breaks down the essentials.

How to Organize Your Receipts

Knowing how long to keep receipts doesn't help much if you can't find them when you need them. A simple system makes all the difference.

Digital Storage Best Practices

Folder structure: Create a main folder for each tax year. Within each year, create subfolders by category:

2024_Receipts/
 ├── Business_Expenses/
 ├── Medical/
 ├── Charitable_Donations/
 ├── Home_Improvements/
 └── Vehicle/

Naming conventions: Use consistent file names that include date and description:

• 2024-03-15_Office-Supplies_Staples_$87.pdf
• 2024-06-22_Medical_DrSmith_$150.pdf

Cloud storage: Keep your receipt files in cloud services like Google Drive, Dropbox, or iCloud. You get:

• Automatic backup
• Access from any device
• Protection if your computer dies
• Easy sharing with your accountant

Scanning and Digitizing Paper Receipts

Scanning methods:

• Smartphone apps (Adobe Scan, Microsoft Lens, Genius Scan)
• Flatbed scanners for batch processing
• Receipt scanning services if you have high volumes

Don't wait: Scan paper receipts within days of getting them. Thermal paper starts fading right away, and a 6-month-old receipt might already be hard to read.

Quick quality check: After scanning, make sure:

• All text is readable
• The full receipt is captured (no cut edges)
• Date, amount, and vendor are clearly visible
• The file is saved in the right folder

For businesses creating customer receipts, using consistent receipt templates ensures all required info appears on every transaction. Makes record-keeping easier for everyone.

7 Common Receipt-Keeping Mistakes to Avoid

Even organized people make these mistakes. Avoid them to protect yourself come audit time.

1. Not Keeping Receipts at All

"I'll remember that" doesn't fly with the IRS. Memory isn't proof. If you can't produce a receipt or some other documentation, your deduction gets denied.

2. Poor Organization

A shoebox of unsorted receipts is almost as bad as no receipts. If you can't find something when asked for it, it basically doesn't exist.

3. Mixing Personal and Business

Combining personal and business expenses is an audit nightmare. Keep them completely separate: separate cards, separate bank accounts, separate receipt storage.

4. Not Keeping Records Long Enough

Tossing receipts after one year when three is required leaves you exposed. When in doubt, keep them longer.

5. Failing to Document Under-$75 Expenses

The $75 rule is a minimum, not a best practice. Small expenses add up. Keep documentation even when it's not technically required.

6. Not Backing Up Digital Copies

One computer crash can wipe out years of records. Use cloud storage, external drives, or both. The 3-2-1 rule: three copies, two different media types, one offsite.

7. Waiting Too Long to Organize

Thermal receipts fade. Memories fade. Scan and organize receipts within a week, not once a year during tax season when half are already unreadable.

When to Safely Dispose of Receipts

Once the retention period passes, you don't need to keep stuff forever. But dispose of it properly to protect your information.

Secure Disposal Methods

Shred sensitive documents: Receipts have info that identity thieves love:

• Last four digits of card numbers
• Signatures
• Purchase patterns
• Account numbers

Cross-cut shredders are more secure than strip-cut ones.

What to shred:

• Any receipt with payment card info
• Receipts showing personal identification
• Anything with signatures
• Bank and financial statements

Annual Purge Strategy

Set a calendar reminder each year after you file taxes. Review your oldest records:

1. Figure out three years after that year's filing date
2. If that date has passed, those records can go
3. Double-check for exceptions (property records, worthless securities, etc.)
4. Shred the qualifying documents

Here's an example: In April 2025, after filing your 2024 taxes, look at your 2021 records. If three years have passed since you filed 2021 taxes (April 2022), it's shredding time.

Building a Sustainable Receipt System

The best system is one you'll actually stick with. Keep it simple:

For personal finances:

• One folder per year (digital or physical)
• Scan or snap photos of receipts within a week
• Review and organize monthly
• Purge expired records once a year

For small businesses:

• Keep business receipts completely separate from personal
• Scan and categorize weekly
• Reconcile with your accounting monthly
• Have a pro review everything during tax prep
• Use templates that include all the required fields

Key Takeaways

Receipt retention doesn't have to be complicated. Just remember these basics:

• Default to 3 years for most tax-related receipts
• Stretch to 6-7 years if your return has any complexity
• Keep property records until you sell, then 7 more years
• Digital copies work as long as they're readable and accessible
• Organize as you go, not once a year
• When in doubt, keep it longer

A few minutes a week on proper receipt management saves hours of stress during audits, tax prep, warranty claims, and financial disputes.

Need to create professional, organized receipts for your business? MakeMyReceipt offers 50+ templates with all the fields you need, downloadable in formats that won't fade over time.