Mr Obama took the oath in the Blue Room to meet the 20 January date set out in the US Constitution.
Given this fell on a Sunday, a public inauguration with pomp and circumstance will take place on Monday.
Vice-President Joe Biden was sworn in for a second term at a small ceremony at his official residence earlier on Sunday morning.
Supreme Court Chief Justice John Roberts administered the oath of office to Mr Obama, witnessed by First Lady Michelle Obama and their daughters Sasha and Malia as well as some family members and reporters.
Resting his hand on a Bible used for many years by his wife's family, Mr Obama vowed "to preserve, protect and defend the Constitution of the United States".
He will repeat those words during Monday's public inauguration, in which he will also set out his plans for the next four years.
Mr Biden will also repeat his oath publicly on Monday.
Thousands of workers and volunteers have been working to finish construction for Monday's celebrations, with white tents, trailers and generators being set up along the Washington Mall's parade route as nearby buildings were adorned with red, white and blue bunting.
For his part, Mr Obama rolled up his sleeves and donned gloves to spend Saturday sprucing up a school with other volunteers, as part of a National Day of Service kicking off the inauguration ceremonies - similar to the way he spent the day before his first presidential inauguration in 2009.
He urged volunteers to honour the memory of civil rights leader Martin Luther King, whose birthday, a national holiday, falls on Monday. This year is the 50th anniversary of King's march on Washington.
President Obama's second term work will be more of a challenge than Saturday's school work, says the BBC's Ben Wright in Washington - trying to change America's gun laws, reforming immigration and dealing with the country's debt.
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