The use of the Internet of Things is increasing in our society and it brings value to the public sector, companies and individuals' personal lives. There is however a strong indication that many Swedish municipalities do not use IoT. The use of IoT can contribute to smartness, efficiency and effectiveness, decreased costs and increased public value. Therefore it is problematic that it is not used to a greater extent. In this study we conduct interviews with IT-staff involved in IoT initiatives within Swedish municipalities to find out how they are working with IoT. Using related research and a theoretical framework called Dimensions of smartness in government we analyze how the municipalities are working with IoT and how it contributes to smartness. The results of the study suggest that working with IoT within the municipalities does contribute to smartness even though a majority of the municipalities state that they are in an early stage. We also conclude that the municipalities work on an operative level rather than a strategic level in implementing IoT-solutions. Organisational integration was identified as a vital part for successful IoT usage. This study will help municipalities with their journey on using IoT and making their municipality smarter by highlighting the important measures to take while working with the Internet of Things.