Near‐surface turbulent kinetic energy dissipation rates are altered by the presence of sea ice in the marginal ice zone, with significant implications for exchanges at the air‐ice‐ocean interface. Observations spanning a range of conditions are used to parameterize dissipation rates in marginal ice zones with relatively thin, newly formed ice, and two regimes are identified. In both regimes, the turbulent dissipation rates are matched to the turbulent input rate, which is formulated as the surface stress acting on roughness elements moving at an effective transfer velocity. In marginal ice zones with waves, the short waves are the roughness elements, and the phase speed of these waves is the effective transfer velocity. The wave amplitudes are attenuated by the ice, and thus, the size of the roughness elements is reduced; this is parameterized as a reduction in the effective transfer velocity. When waves are sufficiently small, the ice floes are the roughness elements, and the relative velocity between the sea ice and the ocean is the effective transfer velocity. A scaling is introduced to determine the appropriate transfer velocity in a marginal ice zone based on wave height, ice thickness and concentration, and ice‐ocean shear. The results suggest that turbulence underneath new sea ice is mostly related to the wind forcing and that marginal ice zones generally have less turbulence than the open ocean under similar wind forcing.