With the increasing number of cars on road, it can be challenging trying to find a parking spot, especially during seasonal times. In the existing mechanism, the driver has to go in rounds trying to find a parking spot, this is an inefficient mechanism as it tends to make the driver waste fuel, increase carbon emission, which is not environmentally friendly, and make the driver feel stressed. Hence, this study investigates Smart Parking system, which integrates many Internet of Things (IoT) components alongside leveraging the use of cloud and edge computing could be the solution. Edge computing is a crucial technology that supports sensor level processing, which is a significant element for data privacy and security in Smart Parking applications. Smart Parking would be able to guide the driver directly to the parking spot, which will minimize or even eliminate the issues in the existing mechanism. It is noteworthy that it is necessary to ensure that the Smart Parking system is secure, because IoT devices are very much prone to security attacks. Further, introducing energy-efficient techniques in Smart Parking will contribute to a greener environment and an economically efficient model. Many studies have focused on Smart Parking with IoT, however, from our critical analysis, we have concluded that many studies have failed to address the security and energy efficiency aspect of smart parking. Hence, we have investigated the impact of security and energy efficiency in Smart Parking system, and have classified the existing literature based on the categories of devises such as sensors, communication protocols, security threats, energy efficiency, applications, and reviews of available resources based on the proposed taxonomy, the study has also tabulated few use cases and emphasized the relationship between IoT, security, and energy efficiency in smart parking, and identified and examined most significant research challenges.