The village was first recorded in 1179 as Tamefeld, believed to be Old English for "field by the River Team", but it is mentioned in an account by John of Hexham of the Scottish invasion of 1138.

[5] The village has the highest rate of people aged 16–74 who have never worked, the figure stands at 33.33 percent, in the whole of England and Wales.

[6] The village church of St. Margaret of Antioch dates back to 900 AD, but the present structure was built in the 18th century.

It was the parish church of Beamish Hall, former home to the Eden, Joicey and Shafto families.

Tanfield was the home of Tommy Armstrong (1848–1919), the "pit-man poet", whose grave is in the village cemetery.