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The area post office was established by Isaac Everett in 1837 as "Everett's Creek"; in 1838, this was changed to "Crews Creek" (presumably after the present Cruises Creek that is south of the city); in 1839, Thomas Hordern renamed it "Bagby".
In 1840, Kenton was formed from Campbell and Boone counties. Local farmer John McCollum donated a site at the center of the new county to be its seat of governance, and the name "Independence" was chosen to honor the liberation of locals from Campbell County. The post office was renamed the same year. Quickly settled, Independence was formally incorporated by the state assembly in 1842.
Because the majority of the county's population resided along the Ohio River, Independence was eventually obliged to share its status as county seat with the larger city of Covington, a situation later repeated in Campbell County between the centrally-located Alexandria and the larger, riverside Newport.
As of the census of 2000, there were 14,982 people, 5,181 households, and 4,149 families residing in the city. The population density was 893.2 people per square mile (344.9/km2). There were 5,391 housing units at an average density of 321.4 per square mile (124.1/km2). The racial makeup of the city was 97.20% White, 0.96% African American, 0.18% Native American, 0.40% Asian, 0.02% Pacific Islander, 0.36% from other races, and 0.87% from two or more races. Hispanic or Latino of any race were 1.15% of the population.
There were 5,181 households, out of which 44.9% had children under the age of 18 living with them, 62.9% were married couples living together, 12.1% had a female householder with no husband present, and 19.9% were non-families. 15.0% of all households were made up of individuals, and 3.4% had someone living alone who was 65 years of age or older. The average household size was 2.89 and the average family size was 3.21.
In the city, the population was spread out, with 30.4% under the age of 18, 9.2% from 18 to 24, 35.3% from 25 to 44, 18.5% from 45 to 64, and 6.5% who were 65 years of age or older. The median age was 31 years. For every 100 females, there were 101.6 males. For every 100 females age 18 and over, there were 97.3 males.
The median income for a household in the city was $51,002, and the median income for a family was $55,030. Males had a median income of $39,213 versus $26,807 for females. The per capita income for the city was $20,191. About 5.4% of families and 6.5% of the population were below the poverty line, including 9.2% of those under age 18 and 4.2% of those age 65 or over.