As the Internet of Things (IoT) is making its entrance in people’s homes, differences in the skills to operate smart home devices need to be considered. This study examined (1) the levels of digital skills to use IoT home automation among Dutch adult citizens and (2) differences of these skills over gender, age, and education. Therefore, a performance test with actual real-life tasks was conducted among a representative sample ( N = 99) of the Dutch adult population to measure digital skill levels. The participants performed tasks while using interconnected smart home devices in a virtual test environment. The results revealed that the Dutch adult population possesses insufficient data and strategic skills to use smart home devices to its full potential. Even less likely to benefit are the elderly and less educated; they showed the lowest levels of data and strategic skills. In addition, the elderly lack operational skills to use IoT home automation beneficially.