Punxsutawney's most famous resident is Punxsutawney Phil, a groundhog said to predict the weather annually on Groundhog Day (February 2). Phil, and the town were the basis for the 1993 hit comedy film Groundhog Day (although nearly all of the movie itself was shot in Woodstock, Illinois).
According to the United States Census Bureau, the borough has a total area of 3.4 square miles (8.9 km²), all of it land.
There were 2,748 households out of which 25.3% had children under the age of 18 living with them, 41.0% were married couples living together, 13.5% had a female householder with no husband present, and 41.7% were non-families. 37.8% of all households were made up of individuals and 20.6% had someone living alone who was 65 years of age or older. The average household size was 2.19 and the average family size was 2.89.
In the borough the population was spread out with 21.3% under the age of 18, 9.9% from 18 to 24, 25.1% from 25 to 44, 21.6% from 45 to 64, and 22.2% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 80.9 males. For every 100 females age 18 and over, there were 77.2 males.
The median income for a household in the borough was $26,250, and the median income for a family was $33,054. Males had a median income of $28,958 versus $19,076 for females. The per capita income for the borough was $14,802. About 13.3% of families and 16.9% of the population were below the poverty line, including 20.6% of those under age 18 and 12.8% of those age 65 or over.
Punxsutawney is the most populous incorporated municipality in Jefferson County.
The Punxsutawney Fire Department is made up of three volunteer stations, The Central Fire Dept. (Jefferson County Station 20), Elk Run Volunteer Fire Company (Jefferson County Station 30), and Lindsey Fire Company (Jefferson County Station 40). The president of the Punxsutawney Fire Department is Doug McAfoos. The Fire Department Chief is Paul Hense. In addition to department officers, each station elects its own officers. Scott Depp is the chief of Central Fire Dept., Bryan Smith the chief of Elk Run VFC, and Joe Defelice the chief of Lindsey Fire Co. The fire department responds to fires, vehicle accidents, Hazardous Materials incidents, and rescue situations in the borough of Punxsutawney, Bell Township, and Young Township. The Punxsutawney Fire Department also maintains an active water rescue team comprising scuba divers and a boat crew.
Jefferson County EMS operates the ambulance station in Punxsutawney. Station 50 is a full advanced life support service comprising Paramedics and Emergency Medical Technicians. Station 50 serves not only the borough of Punxsutawney, but also Southern Jefferson County and parts of Northern Indiana County.
The film Groundhog Day is set in Punxsutawney, although actual filming was done in Woodstock, Illinois.
In the Lost In Space television series, Captain Alonzo P. Tucker, a space pirate (appeared in two episodes), lived in Punxsutawney, a homeless person, until aliens abducted him and others for study, mostly keeping him in suspended animation.