The geometric algebra of three-dimensional space (the ‘‘Pauli algebra’’) is known to provide an efficient geometric description of electromagnetic phenomena. Here, it is applied to the three-dimensional Stokes subspace to describe the polarization of an approximately monochromatic collimated beam of electromagnetic radiation. The coherency density ρ is a real element of the algebra whose components are the four Stokes parameters: a scalar representing the total photon flux density plus a three-dimensional vector whose direction and length in the Poincaré sphere give the type and degree of polarization. The detection of the radiation and the incoherent and coherent modification of the polarization by various optical elements are calculated by algebraic multiplication which has faithful representations in 2×2 matrices. One matrix representation of ρ is the coherency matrix with which Jones and Mueller matrices are related whereas another representation is the spin density matrix. However, the calculations are simplest to perform and interpret in the algebraic form independent of any particular matrix representation. It is shown that any possible change in the Stokes parameters can be treated algebraically by a combination of attenuation, depolarization, polarization, and rotation transformations of ρ. The geometric algebra thus unifies Stokes parameters, the Poincaré sphere, Jones and Mueller matrices, and the coherency and density matrices in a single, simple formalism.