Shoals is best known for the Jug Rock, the USA's largest free-standing table rock formation East of the Mississippi River. The Shoals Catfish Festival is held annually on the July 4th holiday weekend.
According to the United States Census Bureau, the town has a total area of 1.9 square miles (4.9 km²), of which, 1.8 square miles (4.7 km²) of it is land and 0.1 square miles (0.3 km²) of it (5.26%) is water.
There were 377 households out of which 19.1% had children under the age of 18 living with them, 41.1% were married couples living together, 12.5% had a female householder with no husband present, and 43.0% were non-families. 38.5% of all households were made up of individuals and 20.2% had someone living alone who was 65 years of age or older. The average household size was 2.01 and the average family size was 2.65.
In the town the population was spread out with 17.0% under the age of 18, 8.9% from 18 to 24, 24.9% from 25 to 44, 26.3% from 45 to 64, and 22.9% who were 65 years of age or older. The median age was 44 years. For every 100 females there were 100.7 males. For every 100 females age 18 and over, there were 98.8 males.
The median income for a household in the town was $23,750, and the median income for a family was $31,964. Males had a median income of $30,865 versus $21,696 for females. The per capita income for the town was $14,234. About 14.6% of families and 20.4% of the population were below the poverty line, including 33.0% of those under age 18 and 8.1% of those age 65 or over.