Lake Panasoffkee is a census-designated place (CDP) in Sumter County, Florida, United States. The population was 3,413 at the 2000 census. According to the United States Census Bureau, the CDP has a total area of 4.1 square miles (10.5 km²), of which, 4.0 square miles (10.4 km²) of it is land and 0.25% is water. As of the census of 2000, there were 3,413 people, 1,644 households, and 1,045 families residing in the CDP. The population density was 846.6 people per square mile (327.0/km²). There were 2,348 housing units at an average density of 582.4/sq mi (225.0/km²).