La Paz is the capital city of the Mexican state of Baja California Sur and an important regional commercial center. The city had a 2020 census population of 250,141 inhabitants, making it the most populous city in the state. Its metropolitan population is somewhat larger because of the surrounding towns, such as El Centenario, Chametla and San Pedro. It is in La Paz Municipality, which is the fourth-largest municipality in Mexico in geographical size and reported a population of 292,241.

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The population of La Paz has grown greatly since the 2000s. The growth is largely because the city has one of the highest standards of living and security in Mexico.

La Paz is served by the Manuel Márquez de León International Airport with flights to the most important cities of Mexico: Mexico City, Guadalajara, Monterrey. Airlines flying into La Paz include Aeroméxico Connect, Volaris and VivaAerobus. Two ferry services operate from the port of Pichilingue outside the city, connecting the Baja California peninsula to the mainland at Mazatlán and Topolobampo, near Los Mochis.

Eco-tourism is by far the most important source of tourism income in La Paz. Tourists also visit the city's balnearios. There are some 900 islands and inlets in the Gulf of California with 244 now under UNESCO protection as World Heritage Bio-Reserves and the Isla Espíritu Santo group, which borders the northeast portion of the Bay of La Paz, the primary tourist destination of the area.

Industries include silver mining, agriculture, fishing and pearls. Tourism is also an important source of employment for this coastal community.

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