According to the United States Census Bureau, the borough has a total area of 2.0 square miles (5.3 km²), all of it land.
There were 1,296 households out of which 38.4% had children under the age of 18 living with them, 70.1% were married couples living together, 7.1% had a female householder with no husband present, and 20.4% were non-families. 16.9% of all households were made up of individuals and 7.3% had someone living alone who was 65 years of age or older. The average household size was 2.70 and the average family size was 3.04.
In the borough the population was spread out with 26.2% under the age of 18, 5.8% from 18 to 24, 29.0% from 25 to 44, 27.8% from 45 to 64, and 11.3% who were 65 years of age or older. The median age was 40 years. For every 100 females there were 94.9 males. For every 100 females age 18 and over, there were 93.8 males.
The median income for a household in the borough was $66,458, and the median income for a family was $70,319. Males had a median income of $46,563 versus $31,576 for females. The per capita income for the borough was $24,828. About 1.3% of families and 2.7% of the population were below the poverty line, including 1.3% of those under age 18 and 11.7% of those age 65 or over.
Some popular places in New Freedom include Rutters (the most famous gas station), Paesano's pizza shop, Bonkey's ice cream shop, Hodle Tavern, and Railroad Cafe.
Held annually since the 1930s, the New Freedom Lions Club Carnival attracts many people each July. Some other popular events include:
New Freedom teens attend Susquehannock High School and Southern Middle School, part of Pennsylvania's Southern York County School District. In addition, students attend other area schools such as York Catholic High School, St. Joseph's, Dallastown, New Freedom Christian School and York Country Day School.
New Freedom was the location of a brutal teen fratricide killing on October 2, 1998. Thirteen-year-old Gregory Witman was found dead after being stabbed sixty-four times in his home. His brother, Zachary Witman, age 15, was indicted for the murder and some five years later was found guilty and sentenced to life in prison without the possibility of parole. It was only the third murder in the history of New Freedom borough.