Sarah Catharine Paulson was born in Tampa, Florida, to Catharine Gordon (née Dolcater) and Douglas Lyle Paulson II.

When Sarah was five years old, her parents divorced. She subsequently moved with her mother and sister to New York City.

Paulson spent much of her early life in the Queens and Brooklyn boroughs of New York City. This experience exposed her to diverse cultural influences and likely fostered her interest in performing arts.

Paulson attended LaGuardia High School, a prestigious performing arts high school in New York City. This provided formal training and a competitive environment that honed her acting skills. She attended with other notable alumni, including Jennifer Aniston.

During her summer months, Paulson would visit her father in Florida, maintaining a connection with her paternal side of the family.