Panama City is a city in and the county seat of Bay County, Florida, United States. Located along U.S. Highway 98, it is the largest city between Tallahassee and Pensacola. It is also the most populated city of the Panama City–Lynn Haven, Florida metropolitan statistical area. Panama City was severely damaged when Hurricane Michael made landfall as a Category 5 hurricane on October 10, 2018. As of the 2020 census, the population was 32,939, down from the figure of 36,484 at the 2010 census.