From the coal town or settlement on a hill
Kholton is a modern phonetic spelling of the English surname Colton. It traditionally refers to a 'coal town' or a settlement established by a person named Cola, which itself means charcoal. In some interpretations, it is also linked to a 'settlement on a hill'.
Less common today
Kholton isn't in the latest US Top 1000. It last peaked at #6,571 in 2020.
US births per 5-year period, 1990βpresent (SSA data).