Part of the city of Redwood Falls, the county seat of Redwood County, is located in Paxton Township, as is a portion of the Lower Sioux Indian Reservation.

As of the census[1] of 2000, there were 577 people, 206 households, and 152 families residing in the township.

The population density was 15.6 people per square mile (6.0/km2).

There were 206 households, out of which 38.8% had children under the age of 18 living with them, 54.4% were married couples living together, 16.0% had a female householder with no husband present, and 26.2% were non-families.

21.4% of all households were made up of individuals, and 6.8% had someone living alone who was 65 years of age or older.