Landmarks of Towanda include a grain silo complex , local library, and Towanda Elementary School of Normal, Illinois School District Unit Number 5.
As of the census of 2000, there are 493 people, 199 households, and 146 families residing in the village. The population density is 271.9/km² (709.0/mi²). There are 207 housing units at an average density of 114.2 persons/km² (297.7 persons/mi²). The racial makeup of the village is 98.58% White, 0.41% African American, 0.41% from other races, and 0.61% from two or more races. 0.41% of the population are Hispanic or Latino of any race.
There are 199 households out of which 29.1% have children under the age of 18 living with them, 62.3% are married couples living together, 8.5% have a woman whose husband does not live with her, and 26.6% are non-families. 22.6% of all households are made up of individuals and 7.0% have someone living alone who is 65 years of age or older. The average household size is 2.48 and the average family size is 2.91.
In the village the population is spread out with 24.1% under the age of 18, 5.7% from 18 to 24, 33.7% from 25 to 44, 23.7% from 45 to 64, and 12.8% who are 65 years of age or older. The median age is 37 years. For every 100 females there are 94.9 males. For every 100 females age 18 and over, there are 95.8 males.
The median income for a household in the village is $41,705, and the median income for a family is $51,875. Males have a median income of $33,750 versus $30,078 for females. The per capita income for the village is $18,702. 5.3% of the population and 2.6% of families are below the poverty line. Out of the total people living in poverty, 8.1% are under the age of 18 and 3.4% are 65 or older.