July 4th is celebrated as Independence Day in America to commemorate the signing of the Declaration of Independence in 1776, which declared the United States independent from Britain. Traditions of Independence Day include parades, fireworks, parties and fairs. People celebrate with joy, displaying flags, eagles, fireworks and red, white and blue colors. The holiday honors the declaration and the liberty it represents, as Americans wanted freedom and religious freedom, leading to it becoming an official holiday on July 4, 1776.