Answered by Ustadh Salman Younas
Question: Can you celebrate the 4th of July, as well as other national holidays like Canada Day?
Answer: assalamu `alaykum
There is nothing intrinsic in the practice that would allow us to deem it impermissible. It is primarily a cultural celebration, not religious, and nor is it distinctively connected to non-Muslims.
Obviously, if an individual celebrates it in a manner that incorporates the impermissible, such as drinking, music, dance, and so forth, then that particular celebration would not be permitted. However, if it incorporates only that which is permissible, such as inviting family and friends over for food and watching firework displays then there is no legal basis to state that it is impermissible.
Rather, one could even be rewarded if he intends through such permissible cultural celebrations the maintaining of family ties, honoring people, and entering happiness into the hearts of those around him. As the principle states, "the permissible with a sound intention becomes worship."