"We are all going to dearly miss her as a Mother, a Wife, and a Teacher," her husband wrote. "Thank you all for your thoughts, prayers, and support."
Vargas was diagnosed when she was 32 years old, just months after her daughter, Everly, was born.
She was a sixth-grade teacher at Bud Rank Elementary.
Benefit dinners were held to help Vargas with her battle last year. In December, doctors put her in hospice care, and a bake sale was held to help pay for her funeral.
A legacy fund has been set up in Allison's name on GoFundMe.