No settlement was made until 1850, when the town was laid out and named by settlers moving from Old Canton in Smith County, Texas.

In the resulting dispute in 1877, armed residents of Canton went to Wills Point to recover the records, and the county judge wired Governor Richard B. Hubbard for aid.

In 1970, the community had a municipal lake with recreational facilities, seven churches, a school, a bank, a library, a newspaper, and 86 businesses.

However, when the city council decided to recount the population, they found that the town had 5,100 residents instead of the previous census total of 3,292.

[8] In the past, due to the success of First Monday, the city of Canton had no property tax[9][full citation needed].

Canton also holds the Van Zandt County Fair and Rodeo and an Annual Bluegrass Festival, which takes place in August.

Reports of four fatalities and dozens of injured prompted opening of displacement shelters as a disaster declaration was made for Van Zandt County.

Texas Governor Greg Abbott ordered state resources to the area to offer assistance to local officials.

[10][11] On May 29, 2019, the city and county sustained extensive damage from a tornado that struck the downtown area, near First Monday Trade Days.

Canton High School Eagle athletics include football, girls' volleyball, cross country, basketball, power lifting, track and field, golf, tennis, softball, and baseball.