How Long Should You Keep Pay Stubs? Record Retention Guide 2026

Why Keep Pay Stubs At All?

Pay stubs serve as critical proof of your earnings, tax withholdings, and employment history. While employers are required to provide W-2 forms annually, pay stubs offer more detailed information that can be essential in various situations:

Tax Verification

Compare pay stub YTD totals to your W-2 to catch payroll errors before filing taxes.

Income Proof

Needed for rental applications, mortgage loans, auto loans, and credit applications.

Dispute Resolution

Evidence if you suspect underpayment, missing overtime, or incorrect deductions.

Social Security

Verify your earnings history if there are discrepancies in your Social Security records.

Unemployment Claims

Prove earnings history when applying for unemployment benefits.

Legal Protection

Evidence in wage disputes, discrimination cases, or worker's compensation claims.

Retention Timelines by Purpose

1 Year (Minimum)

Essential

Keep pay stubs for at least one year to verify your annual W-2 form when it arrives in January.

Why: Employers can make mistakes. Your pay stubs are the only way to verify that your W-2's gross wages, federal tax, state tax, Social Security, and Medicare totals match your actual year-to-date amounts. If there's a discrepancy, you need your stubs to request a corrected W-2C.

3 Years (IRS Standard)

Recommended

The IRS has a 3-year statute of limitations for most tax audits from the date you file your return.

Why: If the IRS audits your tax return, you'll need supporting documentation to prove your reported income. Pay stubs serve as backup evidence, especially if you've lost your W-2 or if there are questions about unreported income.

Example: You file your 2025 tax return on April 15, 2026. The IRS can audit that return until April 15, 2029. Keep your 2025 pay stubs until at least that date.

6 Years (Extended Audit)

Extra Protection

If you underreport income by more than 25%, the IRS audit window extends to 6 years.

Why: For substantial income underreporting (intentional or accidental), the IRS has more time to audit. Keeping pay stubs for 6 years protects you if questions arise about unreported wages, tips, or bonuses.

7 Years (Best Practice)

Maximum Protection

Many financial experts recommend keeping all tax-related documents for 7 years.

Why: This covers multiple scenarios:

•Extended IRS audit protection (6 years) plus 1 extra year buffer
•State tax agencies often have longer audit windows than federal (up to 7 years in some states)
•Wage and hour lawsuits (statute of limitations typically 2-3 years, but 7 years covers extended scenarios)
•Social Security earnings record corrections (can be challenged within 3 years, 3 months, 15 days, but having older records helps)

Indefinitely (Special Cases)

Permanent

In certain situations, keep pay stubs permanently:

•If you didn't file a tax return: No statute of limitations (IRS can audit anytime)
•If you filed a fraudulent return: No statute of limitations
•Ongoing legal disputes: Keep records until case is fully resolved
•Self-employed/contractor records: Keep indefinitely as business records

Recommended Retention Schedule

Document Type	Keep For
Current year pay stubs	Until W-2 received and verified
Previous 3 years pay stubs	Minimum retention (IRS audit)
Previous 4-7 years pay stubs	Extended protection
W-2 forms	Permanently
1099 forms (contractors)	Permanently
Tax returns	Permanently

How to Store Pay Stubs

Digital Storage (Recommended)

Digital copies are easier to organize, search, and protect from physical damage.

Scan paper stubs: Convert to PDF and organize by year
Cloud storage: Use Google Drive, Dropbox, or OneDrive with encryption
Local backup: Keep copies on an external hard drive
Folder structure: Organize as "Tax Records/2026/Pay Stubs"
Password protect: Encrypt sensitive financial documents

Physical Storage

If keeping paper copies, store them safely and organized.

File folders: One folder per year, labeled clearly
Fireproof safe: Protect from fire/water damage
Dry location: Avoid basements/attics with moisture
Chronological order: Newest on top for easy access

When to Discard Pay Stubs

Shred, Don't Trash

Pay stubs contain sensitive personal information (SSN, address, income details). Always shred or destroy them completely before discarding.

Safe disposal methods: Cross-cut shredder, professional shredding service, or burn in a safe location. Never throw intact stubs in regular trash.

Purging Schedule

✓Review annually (January is ideal when you receive W-2s)
✓Shred pay stubs older than 7 years (unless special circumstances)
✓Keep W-2 forms permanently; only shred duplicate pay stubs
✓Document what you shredded (date range) for your records

Special Situations

Changing Jobs

Keep pay stubs from previous employers for the same 3-7 year period. You may need them to prove employment history, verify earnings for loans, or resolve unemployment benefit disputes.

Self-Employed/Contractors

If you create your own pay stubs to document business income, keep them permanently as business records along with your 1099 forms and tax returns.

Multiple Jobs

Keep all pay stubs from all employers organized separately. Total earnings from all jobs must match your combined W-2s.

Applying for Social Security

Having pay stubs from your entire working career can help if there are errors in your Social Security earnings record. Request a Social Security Statement annually to verify.

How Long Should You Keep Pay Stubs?

Quick Answer