Water management in irrigated agricultural fields is a critical issue in Bangladesh due to a lack of improved irrigation facilities for efficient use of irrigation water, and the cost of crop production is high with low agricultural productivity in agriculture. Therefore, this research aimed to design and implement an internet of things (IoT)-based solar-powered smart irrigation system by sensing the soil moisture levels and periodically controlling the pump operations when the soil moisture is below the required level. A sun-tracking solar system was developed to generate more electricity by tracking the orientation of the sun. A comparison was made between the energy of a fixed-panel solar system with a 24.95° tilt angle and a solar tracking system with no tilt angle. The solar tracker device utilizes a Light Dependent Resistor (LDR) sensor to track the sun, aligning the 150 W solar panel perpendicular to maximize energy capture. This energy is converted into electrical energy and stored in a 12V battery for powering the operation of the submersible pump (DC 12V, 150 W). A wireless sensor network was employed to monitor pumping status and energy comparison in a rice field. A sub-station transferred water level data wirelessly to a main station, where a microcontroller processed the data. The relay module automatically triggered pumping, and the data was stored in the cloud. The solar tracking system outperformed the fixed-panel system with a fixed tilt angle of 24.95° in terms of output power by a remarkable 26.72%. There is a huge potential for solar irrigation systems in Bangladesh, and they can provide sustainable solutions with low irrigation costs. Therefore, this IoT-based solar-powered smart irrigation system could play a vital role in improving irrigation management systems with increased water use efficiency.