Xanthobacter tagetidis is a thiophene-degrading bacterium associated with root balls of the plant genus Tagetes, which includes marigolds. It is a Gram-negative facultatively autotrophic bacterium with pleomorphic morphology exhibiting bent and branching rods. From strain TagT2CT (= ATCC 700314T), we report a genome assembly of 4,945,221 bp and a 69.5% G+C content.