The Fast & Furious star, 40, was a passenger in a Porsche GT driven by a friend when it crashed in Los Angeles and burst into flames. The driver Roger Rodas also died.
The LA County Sheriff's department said the crash happened in the community of Valencia yesterday afternoon (30 November).
It said deputies found a car engulfed in flames when they responded to a report of a collision. Two people found in the car were pronounced dead at the scene.
Universal Pictures issued a statement, saying studio staff were "heartbroken" by his death.
It read: "Paul was truly one of the most beloved and respected members of our studio family for 14 years, and this loss is devastating to us, to everyone involved with the Fast & Furious films, and to countless fans.
"We send our deepest and most sincere condolences to Paul's family."
Paul is survived by his 15-year-old daughter, Meadow, whose mother had recently moved from Hawaii to California to be closer to him
Pauled starred as undercover agent Brian O'Conner in the Fast & Furious franchise which began in 2001, alongside Vin Diesel and Michelle Rodriguez. At the time of his death, Paul was filming the seventh Fast & Furious film.
Vin said in a post on Instagram: "Brother I will miss you very much. I am absolutely speechless. Heaven has gained a new Angel. Rest in Peace."
Paul also starred in the suspense drama Hours, a movie that is set for release this month.
A Facebook entry on Paul's official page reads: "It is with a truly heavy heart that we must confirm that Paul Walker passed away today in a tragic car accident while attending a charity event for his organisation Reach Out Worldwide.
"He was a passenger in a friend's car, in which both lost their lives. We appreciate your patience as we too are stunned and saddened beyond belief by this news. Thank you for keeping his family and friends in your prayers during this very difficult time. We will do our best to keep you apprised on where to send condolences."
RIP Paul Walker.