Background/Objectives: Scalability in the Internet of Things is meant for future extension in Internet connected devices. The scalability can be classified into two broad sense in terms of future flexibility i.e., vertical and horizontal scalability and in terms of infrastructure of the Internet of things i.e., device, communication, gateway, and server levels. Novelty: In this article, a novel taxonomy of scalability is proposed and presented according to infrastructure and it is categorized into four levels i.e., device, gateway, communication, and server levels. Moreover, a performance analysis of vertical scalability is conducted at the server level for a smart campus transportation system on a custom-based emulator developed in Visual Studio. Findings: From the results, it is observed that by increasing the load the response time of the server increases. And by scaling up, response time decreases. By scaling up at a certain limit and increasing the load, response time again increases. It is strongly believed that this research will help in assessing the capacity of present and future smart systems.