The town lies on the banks of the Mitta Arm of Lake Hume, approximately 38 kilometres (24 mi) south-east of Albury-Wodonga along the Murray Valley Highway.

The most distinctive aspect of the town's history is that it was moved 8 kilometres (5 mi) to the west in the 1950s to a site known as Bolga to allow for the expansion of Lake Hume.

[7] Tallangatta possesses a humid subtropical climate (Köppen: Cfa), with very warm, relatively dry summers and cool, slightly wetter winters.

The decline of the water frontage of Lake Hume, due to sporadic drought conditions and the privatisation of Australia waterways, has had an impact on the town.

[citation needed] The town has a high proportion of retirees, with some elderly people cared for at Bolga Court Hostel.

[17] This heritage is celebrated in the popular annual Tallangatta Fifties Festival;[18] however, as of June 2018, has ended due to financial concerns and feedback.

The High Country Rail Trail passes through the town; it follows the route of the Cudgewa railway line, which closed in 1981.