Her repertoire expanded to include nude photographs and modern dance and by the 1930s, Katz was one of the most well-known photographers in Vienna. She participated in several art exhibitions and attracted students. Among those who studied with her were , Hans Popper (later known as John H. Popper), and Anton Josef Trčka. When the Nazis came to power in early 1938, initially Katz was allowed to continue teaching. Until "Kristallnacht", she continued teaching and was allowed to produce photographs for emigrating Jews. Because she had approval to engage in business, she was not placed under surveillance and was able to liquidate her business and vacate the premises under the terms of her lease by 30 April 1939.