It is located in the valley of the Salzach river, between the Hohe Tauern mountain range (Goldberg and Ankogel groups) in the south and the Salzburg Slate Alps in the north.

Schernberg Castle west of the town centre, a 12th-century fortress, was purchased by Archbishop Friedrich von Schwarzenberg in 1845 and turned into the site of a brewery (Brauerei Schwarzach).

Soon after, the business was relocated to Schwarzach centre and the castle was converted into a charitable mental hospital run by the Daughters of Charity.

During the Austrian Anschluss to Nazi Germany from 1938 to 1945, the Daughters fought against compulsory sterilization and the Action T4 "euthanasia" programme, but could not save their patients.

In 1875, Schwarzach received access to the Salzburg-Tyrol Railway line (Giselabahn), running from the city of Salzburg through the Salzach valley to Wörgl in Tyrol, which decisively promoted the local economy.