He is best known for his abrasive and forthright style of interviewing on the BBC's Newsnight programme, which has often been praised as tough and incisive or criticised as aggressive and irreverent. Tough questioning is often described as "Paxmanesque" in the UK, in recognition of his style.

He was born in Leeds in West Yorkshire, England. He is the eldest of four children and has two brothers (one of whom, Giles Paxman, is the British Ambassador to Mexico) and one sister (Jenny Lawrence, who also works at the BBC).

Paxman was educated at Malvern College in Malvern, Worcestershire, and Charterhouse School in Godalming, Surrey. He then read English at St Catharine's College, Cambridge, where he edited the student newspaper Varsity and graduated with a Master of Arts (M.A.).

In an episode of the BBC genealogy programme Who Do You Think You Are?, it was revealed that Paxman is descended from Roger Packsman, a 14th-century politician from Suffolk, East Anglia, who changed his name to Paxman ("man of peace") to impress the electorate.

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