Panama City · Panama

How Much Does Panama City Cost? 2026 Budget Guide | Prices & Tips

Panama City is a fascinating study in contrasts, offering a mix of glittering skyscrapers, lush tropical rainforests, and the historic charm of Casco Viejo. Compared to high-priced regional hubs like Miami, this capital is relatively affordable, though costs vary significantly between the local economy and the tourism-focused sectors. A solo traveler should anticipate daily expenses ranging from $65 for a budget-conscious stay to $648 for a full luxury experience. The city's unique position as a global banking hub means high-end services are plentiful, yet incredibly cheap public infrastructure keeps the floor for travel costs low. Navigating the pricing tiers is key to managing a budget in this cosmopolitan gateway.

Is Panama City expensive to visit?

Panama City is a moderately priced destination where a typical daily budget ranges from $65 to $648 depending on whether you choose local 'fondas' or high-end sky bars.

Currency: US Dollar (USD)
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Daily Budget

How much to budget per person per day in Panama City

Budget

$65

per person /day

Mid-Range

$194

per person /day

Luxury

$648

per person /day

Trip Costs by Duration

Total estimated costs per person, excluding flights

Trip Costs by Duration Budget Mid-Range Luxury
3-Day Trip $194 $583 $1,943
5-Day Trip $324 $972 $3,239
7-Day Trip $453 $1,361 $4,535

per person — Excludes international flights

Budget Buffer

Recommended contingency for unexpected expenses

It is wise to maintain a 15% budget buffer to cover the mandatory 10% hotel occupancy tax and the 7% ITBMS sales tax on meals. Additionally, foreign ATM fees of $5.24–$6.47 per withdrawal can add up quickly if not factored into the total trip cost.

How Does It Compare?

See how Panama City stacks up against other popular destinations

San Jose, Costa Rica Panama City is slightly more expensive for dining and luxury hotels but offers significantly cheaper public transport thanks to its modern $0.35 metro system.
Miami, USA Panama City provides a similar cosmopolitan skyline and tropical climate at roughly 40–50% of the cost, with mid-range hotels at $112 compared to Miami's much higher rates.

What Things Cost

Real prices for common tourist expenses in Panama City

Food & Drink (2)
Item Price
Meal at an Inexpensive Restaurant Local 'fondas' or lunch spots cost ~$9.97 per person. $9.97
Domestic Draft Beer (0.5L) Brands like Balboa or Atlas cost ~$2.99 in a standard bar. $2.99
Transport (4)
Item Price
Metro Line 1 Single Ride Incredibly cheap transit at ~$0.35. Requires a rechargeable card costing ~$1.99. $0.35
Metro Line 2 Single Ride Connects to Line 1 and serves the eastern part of the city for ~$0.49. $0.49
Taxi from Tocumen Airport to City Center Official regulated flat rate for 1–2 passengers; roughly $30. $30
Short Uber/Ride-hail trip within city Often safer and more transparent than yellow taxis for ~$4.48. $4.48
Accommodation (3)
Item Price
Dorm bed in Casco Viejo (Hostel) Staying in the historic district costs ~$25 per night. Prices can drop to ~$18 in less central areas like Obarrio. $25
Holiday Inn Panama Canal (Mid-range Hotel) A reliable mid-range choice near the canal for ~$112 per night. $112
Sofitel Legend Casco Viejo (Luxury Hotel) Verified highest luxury tier rate for international adults; approximately $336 per night. $336
Activities (3)
Item Price
Miraflores Visitor Center (International Adult) Includes the IMAX movie. Non-residents pay significantly more than locals (who pay ~$2.99). $17
Biomuseo Admission (Non-resident Adult) Admission to the Frank Gehry-designed museum on the Causeway costs ~$18. $18
Interoceanic Canal Museum (Non-resident) Located in Casco Viejo; entrance is ~$15. $15
Connectivity (1)
Item Price
Tigo Prepaid Data Plan (15 Days Unlimited) The most comprehensive local plan costs ~$12. $12

Food & Dining

What to eat and what it costs

Dining in the city offers a wide spectrum, from local 'fondas' serving hearty meals for approximately $9.97 to world-class tasting menus. While a domestic draft beer costs around $2.99, visitors should note that a 7% ITBMS sales tax is frequently added to the final bill at sit-down restaurants.

Cheap Eats

Where locals eat — real places, real prices

Niko's Cafe

$6.98–$12

Multiple (Obarrio/Balboa) · Local chain

Grab a 'Club Sandwich' or a full Panamanian breakfast for under ~$12.

El Trapiche

$9.97–$18

Albrook / Via Argentina · Local food

Try the 'Fiesta Panameña' platter to sample everything for about ~$18.

Mercado de Mariscos (Ceviche Stalls)

$2.99–$7.97

Avenida Balboa · Street market

A cup of fresh sea bass ceviche costs ~$2.99; pair it with a ~$1.49 beer.

Fonda Lo Que Hay

$15–$25

Casco Viejo · Local chain

A 'Bib Gourmand' spot where you can eat incredible gourmet local food for ~$20.

Historic National Theatre of Panama (Teatro Nacional) in UNESCO Casco Antiguo colonial quarter, Panama City, Panama

Getting Around

Transport costs and the smartest ways to move

The city boasts an impressively affordable public transit system, with Metro Line 1 rides costing only $0.35 and Line 2 rides at $0.49. For convenience and price transparency, ride-hailing apps like Uber are preferable to yellow taxis, with short trips within the city averaging $4.48.

Metro Line 1 Single Ride $0.35
Metro Line 2 Single Ride $0.49
Taxi from Tocumen Airport to City Center $30
Short Uber/Ride-hail trip within city $4.48

Accommodation Overview

Lodging reflects the city’s dual nature, with dorm beds in the trendy Casco Viejo district priced at $25 and reliable mid-range hotels like the Holiday Inn Panama Canal costing $112. Luxury seekers can expect to pay around $336 per night for premier properties like the Sofitel Legend Casco Viejo.

Dorm bed in Casco Viejo (Hostel) $25
Holiday Inn Panama Canal (Mid-range Hotel) $112
Sofitel Legend Casco Viejo (Luxury Hotel) $336

Accommodation Budget in Panama City

Budget

$41 /night
Typical Range: $35 – $47

Hostels, budget hotels, shared facilities

Most Popular

Mid-Range

$95 /night
Typical Range: $82 – $112

3-star hotels, boutique stays, great locations

Luxury

$195 /night
Typical Range: $165 – $224

5-star hotels, suites, premium amenities

💡 Prices vary by season. Book 2-3 months ahead for best rates.

Where to Stay

See hotels, apartments & rentals around Panama City – live prices from Booking.com, Expedia, Vrbo and more

Money-Saving Tips

Insider tricks to stretch your budget further

  • 1 Purchase a rechargeable Metro card for $1.99 upon arrival to access the incredibly cheap $0.35 transit system.
  • 2 Eat at Niko’s Cafe, a local institution with multiple branches in Obarrio and Balboa, for high-quality cafeteria-style meals at low prices.
  • 3 Visit the Mercado de Mariscos at the end of Avenida Balboa for fresh ceviche cups that are significantly cheaper than restaurant appetizers.
  • 4 Walk the 6km Cinta Costera waterfront path instead of taking taxis between the downtown skyline and Casco Viejo.
  • 5 Stick to local beers like Balboa or Atlas, which typically cost $2.99, rather than imported craft options which can double the price.
  • 6 Use El Trapiche on Via Argentina to sample authentic Panamanian cuisine at mid-range prices rather than dining exclusively in tourist-heavy Casco Viejo.
  • 7 Buy a local Tigo prepaid SIM card for $12 to get 15 days of unlimited data, avoiding expensive roaming charges or hotel Wi-Fi fees.
  • 8 Take the public bus to the Albrook Mall terminal to catch regional connections rather than booking private shuttles.
  • 9 Refill water bottles at the tap, as Panama City is one of the few places in Latin America where municipal water is generally safe to drink.
  • 10 Avoid the $30 airport taxi by using a ride-hailing app, which can often save $5.89–$9.42 depending on the time of day.

Hidden Costs

Surprise expenses that catch tourists off guard

Hidden Costs
Item Amount
ITBMS (Sales Tax) on Food/Goods A 7% tax is added to most restaurant bills and retail purchases. Not always included in menu prices. 7%
Hotel Occupancy Tax A mandatory 10% tax is added to all hotel bookings. This is rarely included in the initial quoted price. 10%
ATM Withdrawal Fee Most Panamanian ATMs charge a flat fee of ~$5.24–$6.47 to foreign cards. $6.47/transaction
Guna Yala (San Blas) Entry Tax Tourists entering Guna Yala territory must pay ~$20 at the border/airport. $20 (one-time)

Common Scams & Ripoffs

Watch out for these tourist traps

  • Non-metered yellow taxi drivers often overcharge tourists; always agree on the price before entering or use ride-hailing apps for a fixed $4.48 fare.
  • Self-appointed 'parking assistants' or 'bien-cuidados' in Casco Viejo may demand payment to watch your car or show you a parking spot that is actually free.
  • Unlicensed guides near the Plaza de Francia may offer 'free' tours but become aggressive when demanding a large tip at the conclusion.
  • Some restaurants in high-traffic areas may automatically include a 'propina' (tip) and then leave the tip line blank on the credit card slip, leading to double-tipping.

Seasonal Pricing

When prices rise and fall throughout the year

Peak Season

Dec, Jan, Feb, Mar

+25–40%

Cheapest

May, Jun, Sep, Oct

-20–30%

Best Value

Apr, Nov

The dry season (Verano) from December to March sees full occupancy. Visiting in the shoulder months of April or November offers the best balance, though rain is common in November.

Events to Watch

  • Carnaval (late Feb): +50% hotels
  • Fiestas Patrias (Nov): Significant closures and peak local travel
Modern Panama City skyline with skyscrapers along Cinta Costera waterfront promenade and harbor, Panama City, Panama

Free Things to Do

The best experiences that cost absolutely nothing

  • 1 Hike to the summit of Ancon Hill for the best panoramic views of the city skyline and the canal entrance.
  • 2 Stroll through the historic streets of Casco Viejo to see the ruins of the Old Social Club and colonial architecture.
  • 3 Visit the Iglesia de San José to view the famous Golden Altar (Altar de Oro), which was famously hidden from pirates.
  • 4 Walk or bike the Calzada de Amador (Amador Causeway) to enjoy sea breezes and views of the Bridge of the Americas.
  • 5 Explore the outdoor exhibits and the vibrant multi-colored exterior of the Biomuseo grounds designed by Frank Gehry.
  • 6 Watch the sunset from the Cinta Costera, where local families gather and street performers often appear in the evenings.
  • 7 Visit the Bahá'í Temple (Templo Bahá'í) located on a hill north of the city for peaceful gardens and unique architecture.
  • 8 Browse the fresh catches and lively atmosphere of the Mercado de Mariscos (Seafood Market).
  • 9 Relax in Parque Omar, the city’s largest green space, which features walking tracks and frequent community events.
  • 10 Attend a free cultural performance or art exhibition at the Centro Cultural de España (Casa del Soldado).
  • 11 Explore the Plaza de la Independencia and Plaza de Francia to see monuments dedicated to the history of the Panama Canal.
  • 12 Visit the Metropolitan Natural Park (Parque Natural Metropolitano) for birdwatching, though note that some specific trails may occasionally require a nominal fee.

Worth the Splurge

Premium experiences that justify the price tag

Panama Canal Helicopter Tour

Unmatched aerial views of the entire canal transit system from ocean to ocean.

$349

Tasting Menu at Maito

Consistently ranked as one of Latin America's best restaurants for Panamanian fusion.

$120

Popular Activities

Top-rated tours and experiences in Panama City

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Day Trip Costs

Popular day trips from Panama City and what they cost

San Blas Islands (Guna Yala)

Getting Around

$120 by 4x4 Jeep + Boat

Entry

$22

Total Cost

$154

Taboga Island

Getting Around

$24 by Ferry

Entry

Free

Total Cost

$60

Payment & Money

How to pay and what to know about money

Currency

US Dollar (USD)

Cash Needed

Yes

Card Acceptance

High in malls, hotels, and upscale Casco Viejo restaurants; cash essential for buses, fondas, and markets.

Tipping

10% is standard in restaurants and often pre-added as 'propina voluntaria'. Taxis are not tipped unless they provide extra service (~$1.18–$2.35).

ATM Tips

Use Banco General or MultiBank for reliability. Fees are high (~$6.47), so withdraw larger amounts at once. Machines dispense USD.

Bargaining

Expected in artisan markets like the Mercado de Artesanías. Not common in retail stores or restaurants.

Connectivity

eSIM: $9.42–$14 for 3GB (opens in new tab)

Local SIM: $12–$18 including a 15-day unlimited plan.

WiFi: Excellent in Casco Viejo cafes, malls, and most mid-to-high range hotels.

Buy a local Tigo SIM card for ~$12; it offers much better value and unlimited data compared to eSIMs.

Tug boat guiding cruise ship through Panama Canal under iconic Bridge of the Americas at Balboa, Panama City, Panama

Why you can trust this guide

Headshot of Jan Křenek, founder of GoTripzi
Jan Křenek

35+ countries • 8 years analyzing travel data

Independent developer and travel data analyst based in Prague. 35+ countries visited across Europe and Asia, 8+ years analyzing flight routes, accommodation prices, and seasonal weather patterns.

Methodology:
  • All neighborhoods verified by walking them
  • Curated locations based on walkability & safety
  • Real-time availability via live partner maps
  • Prices based on Booking.com & Numbeo averages

Methodology: This guide combines on-the-ground neighborhood research, current hotel pricing data, and real traveler feedback to provide honest, actionable accommodation recommendations for Panama City.

Updated: February 16, 2026

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Frequently Asked Questions

Is Panama City expensive to visit?
Panama City is a moderately priced destination where a typical daily budget ranges from $65 to $648 depending on whether you choose local 'fondas' or high-end sky bars.
How much does Panama City cost per day?
A trip to Panama City costs $65 per day on a budget, $194 for mid-range, and $648 for luxury. These include accommodation, food, transport, and activities per person.
How much does a trip to Panama City cost?
A 7-day trip to Panama City costs approximately $453 (budget), $1,361 (mid-range), or $4,535 (luxury) per person, excluding flights.
What is the cheapest month to visit Panama City?
The cheapest months to visit Panama City are May, June, September, October, with prices -20–30% lower than peak season. The dry season (Verano) from December to March sees full occupancy. Visiting in the shoulder months of April or November offers the best balance, though rain is common in November.
What are the hidden costs in Panama City?
Common hidden costs in Panama City include ITBMS (Sales Tax) on Food/Goods ($0/percentage), Hotel Occupancy Tax ($0/percentage), ATM Withdrawal Fee ($6.47/transaction). It is wise to maintain a 15% budget buffer to cover the mandatory 10% hotel occupancy tax and the 7% ITBMS sales tax on meals. Additionally, foreign ATM fees of $5.24–$6.47 per withdrawal can add up quickly if not factored into the total trip cost.
How can I save money in Panama City?
Top tips for saving money in Panama City: Purchase a rechargeable Metro card for $1.99 upon arrival to access the incredibly cheap $0.35 transit system. Eat at Niko’s Cafe, a local institution with multiple branches in Obarrio and Balboa, for high-quality cafeteria-style meals at low prices. Visit the Mercado de Mariscos at the end of Avenida Balboa for fresh ceviche cups that are significantly cheaper than restaurant appetizers.