Kulithalai is administered by a second-grade municipality formed in 1994 and it covers an area of . The Kulithalai municipality has 24 wards and there is an elected councillor for each of those wards. The functions of the municipality are devolved into six departments: general administration/personnel, Engineering, Revenue, Public Health, city planning and Information Technology (IT). All these departments are under the control of a Municipal Commissioner who is the executive head. The legislative powers are vested in a body of 24 members, one each from the 24 wards. The legislative body is headed by an elected Chairperson assisted by a Deputy Chairperson.