The city is governed by the Dharmanagar Municipal Council (DMC), which oversees local civic administration, urban planning, sanitation, and infrastructure development. The council is divided into multiple wards, each represented by an elected councilor.
As the headquarters of the North Tripura district, Dharmanagar hosts the offices of the District Magistrate and Collector, the Superintendent of Police, and various other district-level state government departments. Politically, the city falls under the Dharmanagar assembly constituency in the Tripura Legislative Assembly and is part of the East Tripura Lok Sabha constituency for national representation.