What Is a Pay Stub?
A pay stub is the official record of what you earned, what was deducted, and what was deposited into your account during a pay period. Here is everything you need to know about it.
Walk into any bank to apply for a loan, fill out an apartment rental application, or file for government assistance — at some point, someone will ask you for your pay stubs. They are one of the most commonly requested financial documents in existence, yet most people have only a vague understanding of what each line on them actually means.
The anatomy of a pay stub
Every pay stub, regardless of which country it comes from, has three main sections: earnings, deductions, and net pay. The gross pay is what you earned before anything was taken out. The deductions are the taxes, insurance contributions, and retirement savings removed from that amount. The net pay — sometimes called take-home pay — is what actually lands in your account.
In the United States, the deductions section of a pay stub typically includes federal income tax, Social Security tax (6.2% in 2025), Medicare tax (1.45%), state income tax, and any voluntary deductions like 401(k) contributions or health insurance premiums.
Why pay stubs matter
Beyond the obvious — knowing how much you got paid — pay stubs serve several important purposes. They are the primary document used to verify employment income for loans, mortgages, rental applications, and government benefits. The year-to-date (YTD) columns track how much you have earned and paid in taxes across the year, which you need when filing your tax return. And they create a paper trail that protects both you and your employer in the event of a dispute about pay.
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