Santa Monica is set to change the way visitors pay for parking in downtown, with a new rate structure taking effect on Jan. 12, 2026. The move is intended to encourage longer stays, as those who park for more than three hours will ultimately pay less than they do under the current system. Officials announced the change Monday, citing a need to better align parking fees with city revenue goals.
Under the new downtown scheme, the first 30 minutes of parking will be free, a reduction from the previous 90-minute free period. After the initial half-hour, charges will rise at the three- and five-hour marks, creating a tiered pricing schedule that rewards extended stays. The city has outlined the exact fee amounts, which will be posted at each structure.
“Ultimately, most visitors who park for three hours or more will pay less than they do currently for the same period of time,” the city said in a statement. This statement emphasizes the intended benefit of the revised rates for longer-term visitors. The city hopes the change will also reduce turnover and improve traffic flow.
Monthly parking permits will see a 20 % price cut, making it cheaper for residents and frequent visitors to secure a spot. The discount applies to all permit categories, including those for single-day and multi-day passes. Permit holders will be able to register the new rates online or at the city’s permit office.
The city is offering discounted rebates to businesses, allowing them to provide 90-minute validations for just $1.50 each. This incentive is designed to help local shops and restaurants attract customers who need short parking periods. Businesses can claim the rebate through the city’s business portal.
Beach lots and parking meters will also see a price increase, with hourly rates rising to $2 from the current $1.75. The hike represents a 25-cent jump, and the change will apply to all public beach parking starting Jan. 12. The city maintains that these lots remain among the cheapest options along the Southern California coast.
Discounted rates for seniors and those with disabilities will continue unchanged, ensuring that vulnerable populations are not disproportionately affected by the new pricing. The city confirmed that the same reduced rates will apply to all qualifying individuals at both downtown and beach parking locations.
Flat-rate beach lots will now cost $2 to $5 more than before, a modest increase that the city argues keeps the lots affordable while generating additional revenue. The exact premium varies by lot, but all will see a noticeable bump in their posted rates.
Visitors who pay with a credit card will face a transaction fee, though the city did not disclose the specific amount. The fee is intended to cover processing costs and will apply to all credit card payments at downtown structures and beach lots. Cash and check payments will remain fee-free.
The Santa Monica City Council approved the new parking rates last August as part of the city’s realignment plan. The council’s decision was unanimous and was seen as a key step in addressing the city’s fiscal challenges. The new fees are projected to generate up to $9 million a year for the municipality.
In September, the council passed a resolution declaring a state of fiscal distress, which allows the city to access state and federal funds and grants. The declaration is part of a broader strategy to stabilize the city’s finances amid rising operating costs. The new parking revenue will help fund essential services.
Key Takeaways
- Downtown parking will be free for the first 30 minutes, then increase at 3- and 5-hour thresholds.
- Monthly permits drop 20 % and business rebates enable $1.50 90-minute validations.
- Beach rates rise to $2 per hour; seniors and disabled rates stay unchanged.
- Credit-card users face an undisclosed fee; cash or check is fee-free.
- New rates could bring in up to $9 million annually, supporting the city’s fiscal distress plan.
The changes aim to balance revenue generation with visitor convenience, encouraging longer stays while keeping parking affordable for essential groups. Residents and business owners will need to adjust to the new structure, but the city believes the benefits outweigh the costs. The full details will be posted on the Santa Monica website and at all parking facilities.
