How long to keep documents depends on the paper. Keep most tax records for at least three years after you file, the IRS's normal window, and longer in some cases. Shred credit card and utility bills once paid, and bank statements and pay stubs after a year. Keep birth certificates, deeds and titles for good.
The periods below come from the IRS, the FTC and California agencies, and each one names its source. They are minimums. If you are still deciding what documents should you shred in the first place, start there and come back for the dates.
General information, not legal or tax advice.
How long to keep documents before shredding, at a glance
Use these two charts as your starting point. The sections below explain each row, and where a period isn't confirmed, the chart says to ask your adviser.
How long to keep household records
| Document | How long to keep it | Source |
|---|---|---|
| Birth and death certificates, marriage and divorce decrees, Social Security cards | Forever | FTC |
| Tax returns | Best kept forever | FTC |
| Supporting tax records | At least 3 years, longer in some cases. The FTC suggests 7 years for records such as cancelled checks | IRS, FTC |
| Car titles and home deeds | While you own the property | FTC |
| Home improvement receipts | Until you sell the home | FTC |
| Records for a home or other property | Until the IRS period ends for the year you sell or dispose of it | IRS |
| Bank statements, pay stubs and medical bills | 1 year, unless an insurance dispute is open | FTC |
| Credit card and utility bills | Until paid | FTC |
Business, medical and legal records
| Group | Document | How long to keep it | Source |
|---|---|---|---|
| Business | Tax records | 3, 6 or 7 years, or indefinitely, depending on the case | IRS |
| Business | Employment tax records | At least 4 years after the tax is due or paid, whichever is later | IRS |
| Business | Personnel files in California | At least 3 years after the employee leaves | California DIR |
| Business | Payroll records in California | Check with your adviser | California Labor Code |
| Medical | Patient records kept by California physicians | At least 7 years after the last date of service | Medical Board of California |
| Medical | Records for certain Medi-Cal patients | At least 10 years | Medical Board of California |
| Medical | HIPAA policies and required documentation | 6 years from creation or the date last in effect | 45 CFR 164.530 |
| Legal | Lawyer trust account records | At least 5 years after final distribution | State Bar of California |
| Legal | Closed client files | Check with your adviser | State Bar of California |
These are minimums. An accountant, attorney or insurer may tell you to keep something longer, and their advice comes first.
How long to keep tax records
Keep tax records for at least three years in the normal case. The IRS sets longer periods for specific situations on its record-keeping page.
- 3 years after you file, in most cases.
- 6 years if you didn't report income you should have, and it was more than 25% of the gross income shown on your return.
- 7 years if you file a claim for a loss from worthless securities or a bad debt deduction.
- Indefinitely if you didn't file a return, or if you filed a fraudulent one.
- At least 4 years for employment tax records, counted from the date the tax is due or paid, whichever is later.
- Property records until the period of limitations expires for the year you sell or otherwise dispose of the property.
Why people say seven years
Seven years is the longest of the IRS's fixed periods, so it has become the rule of thumb many people quote. The FTC's shredding guide also suggests keeping other tax records, such as cancelled checks, for seven years. Keeping supporting papers for seven years covers every fixed IRS period. It is just longer than the IRS needs in the normal case.
Keep the returns themselves
The supporting papers are what you can eventually shred. The FTC says it's best to keep the tax returns themselves forever. A return takes little space and can answer questions years later.
California state tax
California's Franchise Tax Board sets its own rules for state returns. Check the Franchise Tax Board's guidance, or ask your tax preparer, before you shred state tax papers.
How long to keep household papers
The FTC's pack rat's guide to shredding gives simple periods for the paper that arrives every month.
- Credit card and utility bills. Keep them until they are paid.
- Bank statements, pay stubs and medical bills. Keep them for one year, unless you have an unresolved insurance dispute. Check pay stubs against your W-2 before you shred them.
- Sales receipts. Shred them, unless you need them for a warranty, taxes or insurance.
- Home improvement receipts. Keep them until you sell the home.
- Car titles and home deeds. Keep them for as long as you own the property.
- Certificates and cards. Keep birth certificates, Social Security cards, marriage and divorce decrees, and death certificates forever.
If a statement or receipt supports something on your tax return, it moves out of this list and into the tax rules above.
How long to keep documents from the sale of a house
Purchase papers and home improvement receipts can affect the tax you owe when you sell. The IRS says to keep property records until the period of limitations expires for the year you dispose of the property. In the normal case, that means at least three years after you file the return that reports the sale.
How long to keep documents after someone dies
There is no single answer to how long to keep documents after a death. An estate needs its tax and asset records until the final returns are filed and the estate is closed. After that, the IRS periods apply to those final returns like any other.
Keep the person's birth and death certificates and other personal records. Keep anything about property, accounts, insurance and debts too. Don't shred anything until the executor or the estate's attorney says it can go.
Estate cleanouts often mean many boxes at once. That is where a one-time shredding purge helps, with the boxes picked up and shredded in a single service.
How long to keep business records
Start with the federal tax rules above, because they apply to business returns too. That answers most of how long to keep documents for a small business. Employment tax records need at least four years after the tax is due or paid, whichever is later.
Employee files in California
California employers must keep personnel records for at least three years after an employee leaves, under Labor Code section 1198.5. The Department of Industrial Relations explains the rule in its FAQ on personnel files.
Payroll records have their own rule under the Labor Code. Confirm the current period with the DIR or your employment adviser before you shred payroll files.
Customer records
When a business no longer needs records that contain consumer report information, the FTC Disposal Rule (16 CFR part 682) says it must dispose of them with reasonable measures. Shredding papers so they can't practicably be read or reconstructed is the example the rule gives. Dream's paper shredding page summarizes the related FACTA and GLBA rules.
Pair it with your e-waste
A retention schedule should cover electronic records and the devices they sit on, as well as paper. Old laptops, servers and copier drives hold the same files as the filing cabinet. Our checklist on business records and e-waste compliance covers that side.
How long to keep medical and legal records
Practices and firms have the longest periods, and the rules differ by profession. These are the California and federal rules a small office is most likely to meet.
How long to keep medical records in California
Since January 1, 2024, California physicians must keep patient records for at least seven years after the last date of service, under Business and Professions Code section 2266. Some records must be kept longer, such as 10 years for certain Medi-Cal patients under Welfare and Institutions Code section 14124.1. The Medical Board of California explains both in its medical records FAQ.
HIPAA also has a six-year rule, and it is often misread. Under 45 CFR 164.530(j), a practice must keep its required documentation, such as policies and procedures, for six years from when it was created or last in effect. That isn't a retention period for the patient records themselves.
Legal records
California lawyers must keep client trust account records for at least five years after final distribution of the funds, under Rule 1.15 of the Rules of Professional Conduct.
Closed client files are less clear. The State Bar has been consulting on guidance for them, so check its current position, and your firm's written policy, before you set a period.
When not to shred, even if the time is up
A record past its date still has to stay if any of these apply.
- A tax audit is open or expected.
- A lawsuit is filed or likely, and a legal hold covers the records.
- An insurance claim is still open.
- An estate isn't closed yet.
- A regulator or agency has asked for the records.
- Your accountant or attorney told you to keep them.
A business or practice should also check its own written retention schedule before each purge.
A simple yearly retention routine
A once-a-year habit keeps the pile from coming back.
- Pick one date each year, such as the week after you file your taxes.
- Pull what is past its date, using the chart above.
- Check that list for holds, open claims and anything a professional asked you to keep.
- Shred it. A cross-cut home shredder handles a few folders. For a box or more, a one-time purge or a scheduled shredding service is quicker.
- If you run a business, keep a record of what was destroyed and when. Dream provides a Certificate of Destruction on request.
- Recycle the shreds the right way. Our guide to shredded paper disposal covers the City of San Diego blue bin rule.
Cleared a filing cabinet and ended up with boxes?
Once you know how long to keep documents, whatever is past its date can go. Dream shreds and recycles documents for homes and businesses across San Diego County, and can give you a Certificate of Destruction if you need one. Offices that keep producing paper can set up scheduled service with a locked console or bin, a key and scheduled swaps. Read more about paper shredding in San Diego.
Frequently asked questions
Do I really need to keep tax records for seven years?
Usually not. The IRS's normal period is three years after you file. Seven years applies when you claim a loss from worthless securities or a bad debt deduction, and six years when you left out more than 25% of your income. Many people keep supporting papers for seven years anyway, and the FTC suggests it for records such as cancelled checks.
How long should I keep bank statements?
The FTC suggests one year for most bank statements, then shred them. Keep a statement longer if it supports something on your tax return, such as a deduction or a business expense, and treat it like the rest of that return's records. Keep statements tied to an open insurance dispute until it is settled.
Can I keep scans instead of paper?
Many people do, and it saves space. Make sure every scan is clear and complete, keep it somewhere that is backed up, and hold it as long as you would hold the paper. Whether a scan is enough depends on who may need it later, so check with your tax preparer or attorney before you shred originals.
How long must a California employer keep personnel files?
At least three years after the employee leaves. The Department of Industrial Relations explains this rule under Labor Code section 1198.5. Payroll and other employment records have separate rules, so confirm those with the DIR or an employment adviser before you shred them. When in doubt, keep the file until you have an answer.
What is the safest way to destroy old records?
Shred them with a cross-cut or micro-cut shredder, or use a shredding service for larger amounts. Strip-cut shreds keep whole lines of text, so they are less secure. Businesses should keep a Certificate of Destruction as proof. Our guide on what documents should you shred covers cut types and what to keep.
