With the consistent spike in the world’s population and continued expansion of urban cities, waste is a highly visible city problem for every prominent stakeholder including the respective State Government of the territory. Waste management in the cities has big expenditures based on the method of waste collection and disposable systems that are opted by a particular city. There are several ways to enhance the waste collection mechanism, however, one of the most appropriate systems with appropriate use of technology is key to getting the waste management system right and making it commercially viable. The latest entrant to smart city waste management is the Internet of Things (IoT). The smart bins comprising IoT sensors and route optimization improve traditional waste management processes in the most efficient manner. Therefore, this paper reviews various IoT-based solutions used for waste collection and route optimization methods for garbage collector vehicles in the past decade. The objective of the paper is to study and analyze the state-of-the-art techniques used for the waste management system with smart IoT-enabled bins. In this paper, analyses of research papers are described in the literature. Research gaps from an existing work have been concluded based on the results of the study. Further, this paper also describes the various challenges and issues of the smart waste management system. This thus, calls for further improvement and innovation.