Zakat

Do I have to pay Zakat on my car and home?

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Question: Do I have to pay Zakat on my car and home?

Answer: You do not have to pay Zakat on any personal effects you own. By personal, I mean anything used primarily by yourself and your family for your general welfare and quality of life.

If you own a car or home for investment and/or resale then you pay 2.5% on the market price after having possessed it for one year. If you own a car or home and lease it to others, then you pay 2.5% on the revenue earned not the asset’study market price.

And Allah knows best.

Don’t see what you’re looking for here? Try our Zakat page for more information.

Do I pay Zakat on my sports car?

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E-Nisab.com is a great site, and one that I frequently refer to. Today I noticed that they had posted this on their twitter account:

The link provided refers back to Darul Fiqh’s site, where Maulana Faraz ibn Adam responds (referencing Rad al-Muhtar):

Any personal belonging for personal use such as a house, car, refrigerator and the like are not subject to zakāt. Even if it is surplus to requirements, zakāt is not due on such an item. Thus, there is no zakāt due on the sports car in reference.[i]

I would just add that one caveat to this general fatwa is that if and when a person using luxury items for the storage of value as a means to Zakat evasion, then these items become zakatable as well. During the time of Omar (May Allah be pleased with him) people purchased horses and slaves and claimed an exemption from Zakat due to texts negating any zakat liability on slaves and horses. Omar looked past the letter of the law, and held them liable for zakat.

What was his legalistic reasoning for doing so?

Don’t see what you’re looking for here? Try our Zakat page for more information.

Legal tools for Zakat & charitable giving

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Giving zakat?
Managing fitra funds?
Donating money abroad?
Legal tools to help you do good.
During the holy month of Ramadan, Muslims turn their attention to spiritual renewal and zakat, or charitable giving.  When giving zakat, it is very important to comply with U.S. laws and regulations.  To assist donors, mosques and non-profits, Muslim Advocates has created the following resources, which contain critical information about legal requirements and best practices when engaging in charitable giving:
Giving zakat?
Donating money, goods or services abroad?
Managing fitra funds for a mosque?

Sign up to learn more about a Muslim Advocates conference call with legal and tax experts during Ramadan to help guide your decisions.
Please forward this email to your family, friends, and community leaders.
Help them get access to the tools and information they need to do good and comply with the law.

For more information, visit www.muslimadvocates.org.  If you have specific questions, please do not hesitate to contact Akil Vohra, Counsel, Muslim Charity Works Program, at 415-692-1486 or at akil@muslimadvocates.org.

Ramadan Mubarak!

Don’t see what you’re looking for here? Try our Zakat page for more information.

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