Palacios is located at 28°42'26" North, 96°13'1" West (28.707500, -96.217222).
According to the United States Census Bureau, the city has a total area of 5.27 mi2 (13.66 km2). 5.04 mi2 (13.07 km2) of it is land and 0.23 mi2 (0.60 km2) of it is covered by water. The total area is 4.36% water.
Palacios is located in the Central Standard Time (CST) timezone, GMT-06:00. It observes Daylight Saving Time (DST).