Panama City, Panama
A dazzling Central American capital with a world-famous canal, modern skyline, and historic Casco Viejo district.
Overview
Panama City is a city in 8 with a population of 1,500,000. A dazzling Central American capital with a world-famous canal, modern skyline, and historic Casco Viejo district. Housing is notably more expensive than the national average. The overall cost of living is above the national average. Gardening thrives here — the 7b growing zone supports Mild — wide variety of vegetables, many fruit trees. Reported crime rates are relatively high. The population skews young, with a median age of 30.0.
Last updated: August 30, 2026
Above Average vs Panama Avg (100)
Above Average
Household income
Job market health
Panama City vs Panama Average
Taxes
- State Income Tax: 25.0%
- Sales Tax: 7.0%
Economy & Jobs
- Median Income: $60,000
- Unemployment: 5.5%
- Population: 1,500,000
Climate
- Sunny Days: 200/year
- Summer High: 88°F
- Winter Low: 72°F
- Farming Zone: USDA Zone 7b
Housing
- Median Home: $350,000
- 1BR Rent: $1200/mo
Cost of Living
Panama City's cost of living index is 115 (Panama average = 100).
| Category | Panama City | National Average | Difference |
|---|---|---|---|
| Overall | 115 | 100 | +15.0% |
| Housing | 150 | 100 | +50.0% |
Data source: INEC Panama / Numbeo, 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | $350,000 |
| Median Rent (1BR) | $1200/mo |
| Median Rent (2BR) | $1,500/mo |
| Price per Sq Ft | $233 |
Data source: Encuentra24 / Numbeo, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Panama City:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | $50 | |
| Heating & Cooling | N/A | Estimated based on local climate. |
| Cooling (AC) | $32 | Estimated based on local climate and electricity rates |
| Water | $20 | Includes sewer |
| Internet (100+ Mbps) | $40 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | $142 | Monthly estimate (including heating & cooling) |
Data sources: ASEP, ENSA, Cable Onda 2025
Remote Work Score
Panama City scores —/100 for remote work readiness:
Climate
Panama City has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 92°F | 72°F | 2.5" |
| April | 73°F | 87°F | 2.8" |
| July | 88°F | 63°F | 1.5" |
| October | 68°F | 90°F | 2.2" |
Mild — wide variety of vegetables, many fruit trees
Natural Hazards
Panama City faces the following natural hazards:
Active seismic zone with significant earthquake risk.
Significant hurricane risk.
Tropical storm floods.
Extreme summer heat.
Pacific coast with tsunami risk.
Wildfires in dry season.
Mountainous terrain with landslides.
Based on historical records and geographic risk assessment.
Taxes
- State Income Tax: 25%
- Sales Tax: 7%
- Property Tax: ~0.5% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 5.5%.
Crime & Safety
Crime rates in Panama City per 100,000 residents:
City-level crime data is not available for this location. The figure shown is the national average, which may differ significantly from actual conditions in this city.
Data source: UN Office on Drugs and Crime
Schools & Education
Academic Schedule
Carnival is a national holiday break.
Demographics
The population of Panama City is diverse. The figures below show the ethnic, educational, and religious composition of the local population.
Ethnicity
Education
Religion
City-level demographic data is not available for this location. The figures shown are national averages, which may differ from actual conditions in this city.
Data source: INEC Census (2010)
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Panama City, Panama?
The cost of living index in Panama City is 115, which is Higher the Panama national average of 100.
How much does it cost to buy a home in Panama City?
The median home price in Panama City is $350,000. The housing index is 150.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Panama City is approximately $1200/mo.
Does Panama City, 8 have income tax?
Panama City is in 8, which has an income tax rate of 25%.
What is the climate like in Panama City?
Panama City enjoys approximately 200 sunny days per year. Summer highs reach around 88°F, while winter lows can drop to around 72°F.
Data Sources
- Cost of Living: INEC Panama / Numbeo, 2026
- Housing Data: Encuentra24 / Numbeo, 2026
- Income & Employment: INEC Panama Labour Force Survey, 2024
- Utilities ASEP, ENSA, Cable Onda 2025
Data last updated: September 13, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.