Smart City has been selected as our primary use case in IoT for three reasons: Firstly, among all of the reviewed articles the focus of 60 percents is on the field of the Smart City, secondly, Smart City includes many of the other use cases in IoT, and thirdly, there are many open datasets for Smart City applications easily accessible for researchers. Also, Support Vector Machine (SVM) algorithm is implemented on the Aarhus City smart traffic data in order to predict traffic hours during one day in Section 6. By answering the above questions about the IoT smart data and machine learning algorithms, we would be able to choose the best machine learning algorithm that can handle IoT smart data characteristics. Unlike the others, similar surveys about the machine learning and IoT, readers of this article would be able to get deep and technical understanding of machine learning algorithms, IoT applications, and IoT data characteristics along with both technical and simple implementations.