As of the census of 2010, there were 3,677 people, 1,484 households, and 923 families living in the town. The population density was. There were 1,645 housing units at an average density of. The racial makeup of the town was 97.7% White, 0.3% African American, 0.2% Native American, 0.3% Asian, 0.5% from other races, and 1.0% from two or more races. Hispanic or Latino of any race were 1.3% of the population. There were 1,484 households of which 31.5% had children under the age of 18 living with them, 42.2% were married couples living together, 15.0% had a female householder with no husband present, 5.0% had a male householder with no wife present, and 37.8% were non-families. 32.4% of all households were made up of individuals and 14% had someone living alone who was 65 years of age or older. The average household size was 2.35 and the average family size was 2.97. The median age in the town was 39.7 years. 23.8% of residents were under the age of 18; 8.2% were between the ages of 18 and 24; 25.5% were from 25 to 44; 25% were from 45 to 64; and 17.5% were 65 years of age or older. The gender makeup of the town was 48.3% male and 51.7% female.
2000 census
As of the census of 2000, there were 3,844 people, 1,581 households, and 1,013 families living in the town. The population density was 1,016.0 people per square mile. There were 1,725 housing units at an average density of 455.9 per square mile. The racial makeup of the town was 98.34% White, 0.21% African American, 0.23% Native American, 0.18% Asian, 0.18% from other races, and 0.86% from two or more races. Hispanic or Latino of any race were 0.70% of the population. There were 1,581 households out of which 31.2% had children under the age of 18 living with them, 49.7% were married couples living together, 11.2% had a female householder with no husband present, and 35.9% were non-families. 32.5% of all households were made up of individuals and 16.1% had someone living alone who was 65 years of age or older. The average household size was 2.31 and the average family size was 2.90. In the town, the population was spread out with 23.7% under the age of 18, 8.7% from 18 to 24, 27.7% from 25 to 44, 21.5% from 45 to 64, and 18.3% who were 65 years of age or older. The median age was 38 years. For every 100 females, there were 91.3 males. For every 100 females age 18 and over, there were 87.2 males. The median income for a household in the town was $26,962, and the median income for a family was $34,412. Males had a median income of $28,566 versus $20,110 for females. The per capita income for the town was $14,313. About 12.8% of families and 15.1% of the population were below the poverty line, including 15.2% of those under age 18 and 13.3% of those age 65 or over.
The Paoli News-Republican is a newspaper published weekly in Paoli. It debuted in 1875 and has been printed by Orange County Publishing since its founding. That company was sold to Shurz Communications in August 2018 in a multi-paper acquisition.