Starting next month, the Philadelphia Parking Authority (PPA) fee will jump from $35 to $75, more than double the current fee.
This will be the first price hike since the program began in 1983.
"Due to the cost of living and just the cost of doing business -- it's been 21 years -- so it was time to increase that a little bit," explained Corrine O'Connor, deputy executive director of the PPA.
The bill also now limits you to only three cars per household.
"We're going to limit three permits per household. Hopefully, that will not clog up the streets as much," said O'Connor.
O'Connor also said the change will help neighborhoods that have seen a huge boost in temporary parking permits due to short-term rentals.
The PPA already increased prices for 15 to 30-day temporary permits, from about $1 a day to $5 a day.
The ordinance was passed by the City Council and signed by Mayor Parker in June. These new yearly rates take effect on September 1.
For residents around the city, parking can be a near-constant struggle.
"We are looking for parking all the time," noted Billy Grewal from Fairmount.
Grewal says he's always circling his block to find a spot.
"People from all of the states leave their cars parked for like months on end," he said.
Grewal says because of this hassle, he's excited to hear the PPA's new plan to help with congestion.
Others have said that the permits are a big help when parking in their local neighborhoods.
Action News spoke with Pete Stevens from Fairmount, who says he thinks $75 is a steal. But, he also questioned whether the new changes would help with the cars that sit on his street for weeks.
"Are they paying for the parking ticket or sticker?" Stevens questioned.