The district of Paxton was originally taken from the towns of Leicester and Rutland, in nearly equal parts, and was incorporated February 12, 1765.

Charles Paxton, marshal of the Admiralty Court, offered a church bell to the town if it was named after him; no such gift was ever made.

David Davis went to Boston with a pair of oxen and drew to Paxton the bell now in use, which was made by Paul Revere.

A small historic and now defunct amusement park called "Paxton Navy Yard" operated here in the mid 20th century.

Asnebumskit Hill was the site of the Yankee Network's early FM broadcasting antenna, beginning its commercial operations in Summer 1939.

[18][19] In fiscal year 2008, the town of Paxton spent 1.53% ($143,354) of its budget on its public library—approximately $30 per person ($36.74 adjusted for inflation to 2021).