Itayanagi is located at the base of Tsugaru Peninsula in Kitatsugaru District of Aomori Prefecture.

The area around Itayanagi was controlled by the Tsugaru clan of Hirosaki Domain during the Edo period, and was the location of a daikansho.

Itayanagi has a mayor-council form of government with a directly elected mayor and a unicameral town legislature of 12 members.

Kitatsugaru District, less the town of Nakadomari, contributes one member to the Aomori Prefectural Assembly.

In terms of national politics, the town is part of Aomori 3rd district of the lower house of the Diet of Japan.