Mainland Tabaco City borders Malinao to the north, Polangui and Oas to the west, Ligao City to the southwest, Mayon Volcano to the south, Malilipot to the southeast, and Lagonoy Gulf to the east. The island of San Miguel, part of the city's territory, is the northwesternmost of Albay's four main islands in the Lagonoy Gulf.
From downtown Tabaco City, one can drive up the northern slopes of Mayon Volcano at around 800 meters above sea level. Tabaco City has also recently launched the annual Tabak festival which commemorates the city's cityhood on March 24, 2001.
The city's economy is still heavily dependent on agriculture. Major crops include rice, corn, rootcrops, vegetables, coconuts and abaca. Poultry and swine raising as well as fishing are other major industries.