He was born in Vienna as a son of Bohemian woodturning master craftsman Jakob Raimann. In 1811, he acted at the Theater in der Josefstadt, and, in 1817 at the Leopoldstädter Theater. In 1823 he produced his first play, Der Barometermacher auf der Zauberinsel, which was followed by Der Diamant des Geisterkönigs (1824). The still popular Bauer als Millionär (1826), Der Alpenkönig und der Menschenfeind (1828) and Der Verschwender (1833) are Raimund's masterpieces. Raimund's comedies are still frequently performed in Austria today.

When Raimund was bitten by a dog, which he falsely believed to be rabid, he tried to shoot himself on during the night of 29 August 1836; he died on 5 September 1836 in Pottenstein, aged 46. Raimund is buried in Gutenstein, which features a Raimund memorial.

Raimund was a master of the Viennese Posse or farce; his rich humour is seen to best advantage in his realistic portraits of his fellow citizens. The Raimund Theater in Vienna is named after him.