Incorporated as a town in 1904, Toomsboro rechartered as a city in 1979.
In 1978 the residents passed a law that prohibited people from drinking any alcohol on Toomsboro's public streets. In 2002, David Bumgardner, who wanted to develop Toomsboro as a tourist destination, purchased most of the town's properties. However, he changed his plans and put those properties up for sale in the spring of 2012.