Walker was in the passenger seat of a friend's Porsche on his way to a charity event when the driver lost control.
The Los Angeles County Sheriff's department confirmed when officers arrived at the scene, they found the vehicle had gone up in flames and two people were pronounced dead.
A statement on Paul's Facebook page said: "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 organization 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."
The actor - who is survived by his 15-year-old daughter - made his name in the 'Fast & Furious' film series, appearing in five of the six movies to date.
The seventh movie in the serious began filming in September and is currently in post-production.
Universal Pictures - who distribute the series - said: "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 and Furious' films, and to countless fans.
"We send our deepest and most sincere condolences to Paul's family."