Payton was one of three children born to Peter and Alyne Payton in Columbia, Mississippi. His father was a factory worker who had played semi-professional baseball. Payton was an active member of the Boy Scouts, Little League, and his local church. At John J. Jefferson High School, Payton played drums in the marching band, participated in the track team and sang in the school choir.

Throughout his life, Payton had claimed his date of birth as July 25, 1954, a date which is cited in many of his early biographies. However, while researching his biography of Payton, Sports Illustrated's Jeff Pearlman discovered his actual date of birth to be July 25, 1953. Pearlman found Payton's earliest use of the later date during his pursuit of the Heisman Trophy at Jackson State.  Payton married Connie Norwood in 1976. During his rookie year, he resided in a home on the north side of Arlington Heights, Illinois. The couple had two children, Jarrett Payton (born 1980) and Brittney (born December 26, 1985) and resided in South Barrington, Illinois.  A 2011 biography by Pearlman describes a tumultuous personal life very different from his positive public image. According to Pearlman's biography, Payton was a consistent adulterer, and a multiple drug user. His drug use began with painkillers provided to him by the Bears to cope with the punishment he absorbed during games, and continued after his football career ended. Payton did not cope well with life after his career, especially with issues of boredom and loneliness. His wife and family contend that the book is filled with factual misstatements, and paints too bleak a picture of his life. However, many reviewers of Pearlman's work have found it to have been "exhaustively" researched and documented by hundreds of interviews. The ghostwriter for Payton's autobiography called the book "an incredible, thoughtful, deep and profound read. It's exceptional work."  Payton was inducted as a laureate of The Lincoln Academy of Illinois and awarded the Order of Lincoln (the state's highest honor) by the governor of Illinois in 1987 in the area of sports.

Did this interfere with his playing?
personal life very different from his positive public image.