Here’s how much the city has made from Sacramento’s latest parking fee increases
Sacramento parking fee hikes in 2024 and 2025 have translated into multimillion-dollar increases in city revenue amid projections of a budget shortfall for the third consecutive year.
Drivers paid about $17.8 million in parking fees from July 1, 2025, through Dec. 31, 2025 — an increase of about $2.4 million compared to the same period in 2024 ($15.4 million) and up $4.8 million from the same time period in 2023 ($13 million), according to data provided by a city spokesperson. This money only represents metered parking and off-street garages, and does not include calculations from other services .
The Sacramento City Council passed fee increases to help fill budget deficits of $66 million and $62 million in 2024 and 2025, respectively.
The city had anticipated adding $5 million in the 2025-26 fiscal year to revenues after rate increases to parking meters and off-street garages took effect last year, according to The Sacramento Bee’s previous reporting. The $2.4 million increase for the first six months of the fiscal year have the city roughly on track for that projection.
The spiking parking revenues come as Gov. Gavin Newsom ordered state workers to return to office starting from July 1, 2025, though that mandate was delayed for some state agencies to July 1, 2026. The city is also contending with a potential $66 million shortfall for the upcoming fiscal year, an amount that does not include state funding to address homelessness, according to projections presented Tuesday during a budget and audit committee meeting.
“The conversations we’re going to have over the next three months are going to be particularly important in reaching that goal in June” of having a balanced budget, said Councilmember Roger Dickinson during Tuesday’s committee meeting.
The council opted to charge parking meter fees on Sundays and holidays starting in July 2024 and approved additional raises to on-street meter rates, which took effect July 1, 2025. Residents now pay $3, $4.50 or $6 hourly for on-street parking, with the tier depending on location, duration and whether a special event is taking place.
Old Sacramento, Memorial and Tower Bridge parking garages’ monthly rates spiked by $10, coupled with higher half-hour rates.
For this upcoming fiscal year — which begins July 1 — most of Sacramento’s taxes have collected more revenue than expected, city finance director Pete Coletto said Tuesday. However, the cannabis business operating tax is projected to fall short of forecasts, he said.
The city anticipates a $66 million deficit for 2026 and for the deficit to grow to about $102 million by 2029, Colleto said. These projections do not include homelessness funding from the state.
This story was originally published February 5, 2026 at 7:00 AM.
CORRECTION: A previous version of this story incorrectly listed a category of parking revenue that the council considered but did not adopt as having taken effect last year.
