Carbon had its start by the building of the railroad through that territory. A post office was established at Carbon in 1870. It was named after the Carbon Coal Company.
Geography
Carbon is located at . According to the 2010 census, Carbon has a total area of, all land.
Demographics
2010 census
As of the census of 2010, there were 397 people, 138 households, and 98 families living in the town. The population density was. There were 165 housing units at an average density of. The racial makeup of the town was 96.7% White, 2.3% from other races, and 1.0% from two or more races. Hispanic or Latino of any race were 3.0% of the population. There were 138 households, of which 41.3% had children under the age of 18 living with them, 55.8% were married couplesliving together, 8.7% had a female householder with no husband present, 6.5% had a male householder with no wife present, and 29.0% were non-families. 21.0% of all households were made up of individuals, and 9.4% had someone living alone who was 65 years of age or older. The average household size was 2.88 and the average family size was 3.40. The median age in the town was 35.6 years. 30.7% of residents were under the age of 18; 7.3% were between the ages of 18 and 24; 26.4% were from 25 to 44; 26.4% were from 45 to 64; and 9.1% were 65 years of age or older. The gender makeup of the town was 50.6% male and 49.4% female.
2000 census
As of the census of 2000, there were 334 people, 122 households, and 86 families living in the town. The population density was 2,109.4 people per square mile. There were 136 housing units at an average density of 858.9 per square mile. The racial makeup of the town was 99.70% White, and 0.30% from two or more races. Hispanic or Latino of any race were 1.20% of the population. There were 122 households, out of which 41.8% had children under the age of 18 living with them, 54.1% were married couples living together, 12.3% had a female householder with no husband present, and 29.5% were non-families. 25.4% of all households were made up of individuals, and 8.2% had someone living alone who was 65 years of age or older. The average household size was 2.74 and the average family size was 3.28. In the town, the population was spread out, with 31.4% under the age of 18, 10.5% from 18 to 24, 30.5% from 25 to 44, 16.5% from 45 to 64, and 11.1% who were 65 years of age or older. The median age was 30 years. For every 100 females, there were 92.0 males. For every 100 females age 18 and over, there were 94.1 males. The median income for a household in the town was $35,208, and the median income for a family was $37,656. Males had a median income of $25,341 versus $22,500 for females. The per capita income for the town was $13,089. About 15.5% of families and 14.8% of the population were below the poverty line, including 14.3% of those under age 18 and 24.2% of those age 65 or over.