Katzwinkel lies in the Gäsbach valley stretching up from the upper Üßbach’s right bank, just under 500 m west of Bundesstraße 257 between Kelberg and Ulmen.
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Until 1970, the municipality belonged to the Verbandsgemeinde of Daun, when it, along with Beinhausen, Boxberg, Brück, Hörschhausen and Neichen, was annexed to the Verbandsgemeinde of Kelberg.
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It belongs to the Verbandsgemeinde of Kelberg, whose seat is in the like-named municipality.
The French administration made Sarmersbach the administrative seat of the like-named mairie (“mayoralty”), to which belonged not only Sarmersbach but also Beinhausen, Boxberg, Kradenbach, Gefell, Hörschhausen, Katzwinkel, Neichen, Nerdlen, Schönbach and Utzerath.