Panama City is a city in and the county seat of Bay County, Florida, United States. Located along U.S. Highway 98 (US 98), it is the largest city between Tallahassee and Pensacola. It is the most populous city in Bay County and a principal city of the Panama City–Panama City Beach, Florida Metropolitan Statistical Area, which has a population of approximately 200,534. According to the 2020 United States census, the city's population was 32,939.