The commune was written as Peisac, Peyzac, Paysac and since the late-19th century: Payzac. The official name Payzac replaced the older name Payzac-de-Lanouaille in 1961.
During the French Revolution on Friday 23 August 1793, the communes of Boisseuilh, Coubjours, Génis, Payzac, Saint-Cyr-les-Champagnes, Saint Mesmin, Salagnac, Savignac, Saint-Trié (Sainte-Trie) and Teillots were detached from the Corrèze department, and reunited to the Dordogne department.
The commune is well known for its Rugby team "l'USPS" (lit. Payzac-Savignac Sporting Union), champion of France 3 in 2000 and in the Périgord-Agenais "regional honor promotion league" in 2007/2008.