Thodupuzha is governed by the Thodupuzha Municipality, a local self-government body established in 1978. The municipality is divided into 35 administrative wards, each represented by an elected councilor. The municipal council is headed by a Chairperson.
At the state level, Thodupuzha is a legislative assembly constituency represented in the Kerala Legislative Assembly. At the national level, it falls under the Idukki Lok Sabha constituency.
The local government is responsible for providing essential public services, including waste management, sanitation, maintenance of local roads, town planning, and the upkeep of public health centers.