Sarah Catharine Paulson was born in Tampa, Florida, to Catharine Gordon (née Dolcater) and Douglas Lyle Paulson II. Her early years were marked by a significant move after her parents divorced when she was five years old, leading her and her mother to relocate to New York City. This move would prove pivotal, setting the stage for her burgeoning interest and eventual pursuit of acting.

Paulson began her acting career with various stage productions and minor television roles. She appeared in episodes of 'Law & Order' and 'American Gothic,' gaining valuable experience and exposure in the industry. These early roles, though small, helped her hone her craft and build a foundation for her future success.