Proof of income
Proof of Income Letter: What It Shows and When It Works
What a proof of income letter states, how landlords and lenders read it, and which documents prove income when you are self-employed or on benefits.
Updated November 2, 2026 · Reviewed against official sources
A proof of income letter, also called an income verification letter, is a signed statement of what someone earns. When it comes from an employer, it states the employee's pay rate, how often they are paid and, often, what they have earned so far this year. Landlords, lenders and agencies use it alongside pay stubs to confirm that the income on an application is real and steady.
What an employer's income letter states
- The employer on company letterhead: name, address and phone number.
- The date of the letter.
- The employee: full name and job title.
- Employment status and start date, so the reader knows the income is ongoing.
- Pay rate: annual salary, or hourly rate with typical weekly hours.
- Pay frequency: weekly, biweekly, semimonthly or monthly.
- Earnings: gross pay per period and, often, year-to-date gross earnings.
- A signature block for an authorized representative, with contact details for confirmation.
Gross pay matters more than net pay: requirements like "income of three times the rent" are measured before taxes and deductions.
How landlords and lenders read it
They compare the letter with your other documents. The pay rate and frequency on the letter should produce the gross pay on your pay stubs, and the year-to-date figure should line up with the latest stub's YTD totals. Lenders convert pay to a monthly figure: a biweekly gross is multiplied by 26 and divided by 12, a weekly gross by 52 and divided by 12. Variable pay such as overtime, bonuses and commissions is usually averaged over a longer period, using year-to-date and prior-year earnings.
Mortgage lenders also confirm employment directly with the employer near closing and may check W-2s and IRS transcripts, so every document has to tell the same story. See pay stubs for loan applications and pay stubs for rental applications.
Other ways to prove income
| Your situation | Documents requesters accept |
|---|---|
| Employee | Recent pay stubs with YTD, employer income letter, W-2s |
| Contractor or freelancer | 1099-NEC forms, client payment records, bank statements, tax returns with Schedule C |
| Self-employed business owner | Two years of tax returns, a year-to-date profit and loss statement, bank statements |
| Retired or receiving benefits | Benefit award letters (Social Security, pension, VA), bank statements |
If you work for yourself, see pay stubs when you're self-employed for what applies to owners and contractors.
Getting a letter from your employer
Ask HR, payroll or your manager in writing, say who the letter is for and what it must show, and check the figures before you send it on. Small employers often do not have a template; sharing a list like the one above makes the request easy to fill.
For employers already preparing pay stubs with PayStubShop, the Proof of Income Letter can be added at checkout for $1.99. Its earnings, pay rate and frequency come from the same calculation as the stubs in the order, so the letter and the stubs always agree. It is set on your company letterhead from the details you enter and closes with a blank signature block for your authorized representative; nothing is signed for you, and nothing is presented as independently verified. Add the Employment Verification Letter too if the requester needs title, status and start date confirmed.
Frequently asked questions
What counts as proof of income?
Recent pay stubs with year-to-date totals, a signed income letter from the employer, W-2s, tax returns, 1099 forms, bank statements showing regular deposits, and benefit award letters, such as a Social Security benefit letter. Requesters usually want two or more that agree with each other.
How much income do landlords look for?
A common screening rule of thumb is gross monthly income of about three times the monthly rent, but each landlord sets its own criteria. Some accept a guarantor or a larger deposit when income is lower.
Can I write my own proof of income letter?
An income letter carries weight because it comes from the payer, usually the employer. If you are self-employed, a letter you write yourself is not employer verification; tax returns, 1099s, a profit and loss statement and bank statements are what landlords and lenders rely on, sometimes with a letter from your accountant.
Should the letter show gross or net pay?
Gross pay, before taxes and deductions, is what landlords and lenders compare against their requirements. Stating the pay rate and pay frequency lets them compute it themselves, for example biweekly gross × 26 ÷ 12 for a monthly figure.
Does the income letter replace pay stubs?
Usually not. Most requesters want the letter together with recent pay stubs, because the stubs show actual pay periods, deductions and year-to-date earnings that confirm the letter.
Sources
- Fannie Mae Selling Guide B3-3.1-02: Standards for Employment Documentation, accessed Nov 2, 2026
- CFPB: What documents do I need to apply for a mortgage?, accessed Nov 2, 2026
General information, not legal or tax advice.
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