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Most parking in the City is provided by off-street parking lots, along residential access streets, or by on-street spaces in select areas of the Town Center.

In 2001, the City implemented a permit parking program for on-street parking in the Town Center in response to overflow conditions at the Mercer Island Park and Ride lot. This program preserves selected public on-street parking spaces for Mercer Island resident use, between the hours of 7:00 AM and 9:00 AM, Monday through Friday. All Mercer Island residents are eligible for a Town Center District permit which will allow them to park on Town Center streets during the specified hours.

An additional permit parking program was developed for residential streets north of the park and ride lot on North Mercer Way. This program only allows residents of the area to park on City streets between 7:00 AM and 4:00 PM, weekdays.