Groundwater is the major source of water for Tamarix chinensis growth in the Yellow River Delta (YRD) region, and the groundwater depth (GWD) dramatically influences the physiological activities of T. chinensis. The quantitative response of the photosynthetic physiological process of T. chinensis to the GWD in freshwater habitats remains unclear. In this study, the response characteristics of gas exchange parameters in the leaves of three-year-old T. chinensis seedlings were measured and analyzed at a graded series of seven GWDs (0 m, 0.3 m, 0.6 m, 0.9 m, 1.2 m, 1.5 m and 1.8 m). The GWD thresholds corresponding to drastic changes in the photosynthetic efficiency and the GWDs of several levels of photosynthetic productivity and efficiency were also determined. In the freshwater habitats of the YRD, variations in GWD significantly altered the relative soil water content (RSWC) and thus influenced the photosynthetic efficiency of T. chinensis. RSWC at 0 ≤ GWD ≤ 0.9 m and GWD at 1.2 m ≤ GWD ≤ 1.8 m directly influenced the photosynthetic physiology of T. chinensis. When the GWD was 1.2 m, net photosynthetic rate (Pn), apparent quantum efficiency and water use efficiency (WUE) values all peaked. Thus, T. chinensis exhibited a high light and water use efficiency, wide ecological amplitude in terms of light, and high photosynthetic capacity. The optimum GWD for photosynthetic carbon assimilation and WUE in T. chinensis was determined to be 1.2 m. At a deep (≥1.64 m) or shallow (≤0.53 m) GWD, both Pn and WUE in T. chinensis clearly decreased below the corresponding mean values. The main causes for the reduction in Pn in these two GWD ranges (≤0.53 m, ≥1.64 m) were stomatal and nonstomatal limitations, respectively. Additionally, a moderate GWD of 1.09–1.25 m corresponded to the “high-productivity and high-efficiency GWD” range, in which T. chinensis displayed a high photosynthetic yield and WUE. Overall, the photosynthetic capacity of T. chinensis shows characteristics of high tolerance to moderate GWDs from 1.09 m to 1.25 m but intolerance at both shallow (≤0.53 m) and deep (≥1.64 m) GWDs in freshwater habitats.