When applying for a rental property or a bank loan, you’ll often be asked to show proof of income. Two common documents used for this purpose are the paystub and the W2 form. But which one do landlords and banks actually prefer and why? Let’s break it down.

What Is a Paystub?

A paystub (also called a paycheck stub) is a document that shows how much an employee earned during a specific pay period. It includes:

  • Gross and net pay

  • Tax withholdings

  • Hours worked or salary rate

  • Deductions like insurance or retirement contributions

Best For:
✅ Showing recent or ongoing income
✅ Gig workers, freelancers, and short-term earners
✅ Monthly rent applications or employment verification

What Is a W2 Form?

A W2 form (Wage and Tax Statement) is an official IRS document issued by employers at the end of the year. It reports:

  • Total annual earnings

  • Federal and state tax withholdings

  • Social Security and Medicare contributions

Best For:
✅ Long-term income verification
✅ Annual financial summaries
✅ Loan or mortgage approvals

What Do Landlords Want?

Most landlords want to see paystubs from the last 1–3 months. This helps them confirm you:

  • Currently have a job

  • Are earning enough to pay rent

  • Have a consistent income stream

In some cases, they may also ask for a W2 form for added proof of financial stability — especially if you’re self-employed or your pay fluctuates.

What Do Banks Want?

Banks and lenders usually prefer W2 forms because they show:

  • Verified income for the entire year

  • Employer-reported tax data

  • Income history consistency

However, they may also request recent paystubs to confirm that your income hasn’t changed since the last tax year.

Which One Should You Use?

Use Paystubs When:

  • Renting an apartment

  • Proving recent employment

  • You’ve changed jobs recently

Use W2 Forms When:

  • Applying for loans or credit cards

  • Proving long-term financial stability

  • Filing taxes or mortgage applications

Final Thoughts

Both paystubs and W2 forms serve important but different purposes. For tenants and borrowers, having both documents ready can improve your chances of approval and show that you’re financially reliable. Use a trusted paystub generator or W2 creator to prepare clean, accurate documents.

Categorized in:

Education,

Last Update: June 27, 2025

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