Massive stars play a very important role in many astrophysical fields. Yet, some fundamental aspects of their evolution remain poorly constrained. In this regard, there is an open debate on the width of the main-sequence (MS) phase. We aim to create an updated Hertzsprung-Russell (HR) diagram that includes a volume-limited and statistically significant sample of massive stars. Our goal is to use this sample to investigate the extension of the MS, including information about projected rotational velocities ($v\sin i$) and the spectroscopic binary status. We combine spectroscopic parameters derived with FASTWIND stellar atmosphere code and Gaia distances to obtain stellar parameters for 876 Galactic luminous O- and B-type stars gathered within the IACOB project. We use the ${\tt iacob-broad}$ tool to derive $v\sin i$ estimates and multi-epoch spectra to identify single/double-line spectroscopic binaries (SB1/SB2). We present an HR diagram for 670 stars located within 2500pc balancing completeness and number. We evaluate the extension of the MS in terms of the drop in the relative number of stars as a function of effective temperature ($T_{\rm eff}$). We find a consistent boundary at $\approx$22.5kK within the full range of luminosities that we use to delineate the terminal-age main sequence (TAMS). We obtain a smooth decrease of the highest $v\sin i$ with $T_{\rm eff}$ along the MS, likely limited by the critical velocity. We consider this effect combined with a lower expected fraction of stars beyond the MS as the best explanation for the lack of fast-rotating objects in the post-MS region. Our results favor low to mild initial rotation for the full sample and a binary past for the tail of fast-rotating stars. The prominence of SB1/SB2 systems in the MS, and the 25% decrease in the relative fraction of SB1 systems when crossing the TAMS can further delineate its location.