New parking rates will go into effect at Santa Monica public parking structures, starting on Jan. 12, 2026, officials announced Monday.

The pay scheme aims to encourage people to stay in downtown Santa Monica longer as those who park in downtown Santa Monica for more than three hours will ultimately pay less.

Downtown parking structures

Public parking structures in downtown Santa Monica have offered free parking for the first 90 minutes. But that will change as the first 30 minutes of parking will be free of charge, beginning on Jan. 12.  

After visitors are charged for the first 30 minutes of parking, the cost will increase at the three- and five-hour marks, according to the city.

“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.

The coastal city is also offering more perks for downtown parking structures as the city tries to retain businesses and attract more foot traffic: a monthly parking permit will be 20% cheaper. And the city is offering discounted rebates for businesses, so they can provide 90-minute validations for $1.50 each.

Beach lots, parking meters

Starting on Jan. 12, parking at beach lots or meters will cost $2 per hour, a 25-cent increase from this year.  

The city said discounted rates will remain in place for seniors and those with disabilities.

Flat-rate beach lots will cost $2 to $5 more than before, but the city insisted Santa Monica’s beachfront lots are among the “least expensive” parking in Southern California. 

More fees

Those who pay for parking with a credit card will be charged a transactional cost. The city did not say how much the city will charge visitors for credit card processing.

Transactions by cash or check will not incur these fees.

The Santa Monica City Council approved the new parking rates last August as part of the city’s realignment plan. The new parking fees could generate up to $9 million a year for the city, officials said. 

In September, the Santa Monica City Council unanimously approved a resolution to declare a state of fiscal distress, allowing the city to address financial challenges via funds and grants from the state and the federal governments.