This study directs its focus toward the human aspect of smart cities, a domain that has received comparatively scant attention in the existing body of literature. Using policy literacy theory, encompassing the citizens’ perceptions regarding policies through the lens of their understanding, we delve into four predictors of smart city policy literacy, (1) demographics, (2) socioeconomic status, (3) geographic factors and (4) attitudes toward government. Using a national survey, we find that gender, age, income, education, marital status and the reputation of an organization are meaningfully associated with policy literacy. These findings underscore the nuanced nature of the human aspect, highlighting the significance of heterogeneous individual dispositions of smart cities. Against the backdrop of ongoing debates questioning the validity of a one-size-fits-all approach, our study embraces the multifaceted and personalized attributes of the citizenry, acknowledging the imperative role of the human dimension in designing smart cities. Points for practitioners: • Analyzing the policy literacy of citizens in the context of smart cities holds significant implications for public managers and officials, as it unveils the practical utilization of policies by service recipients. • Leveraging policy literacy theory, this research investigates individuals’ smart city policy literacy and finds meaningful associations with gender, age, income, education, marital status and organizational reputation. • Acknowledging the varied viewpoints on smart cities and the limitations of a uniform approach is essential for policymakers and practitioners. This underscores the necessity of placing equal emphasis on the human aspect, taking into account the personalized needs and preferences of citizens.