The first annual commemoration of independence was held in Philadelphia on July 4, 1777. In a letter to his daughter (also named Abigail), John Adams wrote that day was celebrated “with a festivity and ceremony becoming the occasion,” according to the Library of Congress.
Massachusetts made July 4 an official state holiday in 1781, the first state to do so. And July 4 became more widely observed by Americans following the War of 1812 (which again pitted the United States against the British.)
Independence Day became the most important nonreligious holiday for many Americans by the 1870s, and Congress passed a law making Independence Day a federal holiday on June 28, 1870.