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Paris Hilton was born in New York City, the eldest of four children of Richard Hilton and Kathy Richards. Her younger sister is Nicky Hilton, and her younger brothers are Barron Hilton II and Conrad Hilton II.

On the maternal side of her family, Hilton is a niece of two popular child stars of the 1970s - Kim Richards and Kyle Richards, who appeared in the motion picture Escape to Witch Mountain and TV shows like Nanny and the Professor, Little House on the Prairie, and later, ER. By marriage, she also is related to Zsa Zsa Gabor (the Hungarian-born actress married Paris Hilton's great-grandfather Conrad Hilton) as well as Elizabeth Taylor (the actress's first husband was Paris Hilton's great-uncle, Conrad Nicholson Hilton Jr.).

Her paternal grandparents are hotel chairman Barron Hilton and his wife, the former Marilyn Hawley, and her paternal great-grandparents were Hilton Hotel founder Conrad Hilton and his first wife, Mary Barron. When Conrad Hilton died in 1979, he left nothing in his will to his children or other descendants. Barron Hilton contested this decision and won in 1988.

Hilton moved between several exclusive homes in her youth, including a suite in the Waldorf-Astoria Hotel in Manhattan, Beverly Hills, and the Hamptons. Currently, her parents own a $30.5 million mansion in Bel Air, a $12.3 million estate in the Hamptons, and a $10 million house in the Hollywood Hills in which she and her sister stay to give them privacy and for easy access to clubs in Los Angeles.

After attending high school at the Dwight School in New York, but dropping out and eventually earning a GED, Hilton decided not to attend a university.

Hilton shot to prominence when a sex tape of her with then-boyfriend Rick Salomon was leaked onto the Internet shortly after The Simple Life debuted. On June 9, 2004 it was released as a DVD titled 1 Night in Paris which was presented by Salomon. Hilton sued Salomon for releasing the tape, but the suit was settled. Hilton received US $400,000 and a percentage of the profits, which were donated to charity.