19 Jan 2025
Zakat on Your Main Home
Your main home is not zakatable. Zakat is only due on property bought to sell, not property you live in.
Clear, evidence-led guidance to help you understand Zakat and make confident decisions—step by step.
Understand the basic concept of zakat so that you can fullfil your obligations with confidence and without doubt.
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Zakat is the third pillar of Islam, a mandatory act of worship that purifies wealth and supports the community.
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Zakat exists to purify wealth and create a just society. It is a command from Allah with deep spiritual and social benefits.
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Not everyone must pay Zakat. You must meet four specific conditions before Zakat becomes obligatory.
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Zakat becomes due after you have held qualifying wealth above nisab for one full lunar year.
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Your Zakat goes to eight specific categories of people. The Quran defines exactly who can receive it.
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Zakat and Sadaqah are both forms of giving in Islam, but they are fundamentally different. One is obligatory, the other is voluntary.
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Nisab is the minimum amount of wealth you must own before Zakat becomes obligatory. It is based on the value of gold or silver.
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The nisab can be calculated using gold or silver. The two values differ significantly, and your choice affects whether Zakat is due.
Learn which types of wealth are subject to zakat and how to assess them accurately.
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Not all wealth is subject to Zakat. Islam defines specific types of wealth that must be included in your calculation, and others that are exempt.
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Cash and savings are the most common forms of zakatable wealth. If you have money in the bank or at home, it is likely subject to Zakat.
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Shares, stocks, pensions, and cryptocurrency are zakatable if they meet certain conditions. Zakat applies to modern wealth just as it does to traditional assets.
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Property and business assets are zakatable if they are held for profit. Your main home and personal belongings are exempt.
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Debts can reduce the amount of Zakat you owe, but not all debts are treated the same way. Understanding the rules helps you calculate correctly.
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All cash and money in bank accounts is counted when calculating Zakat. This includes current accounts and savings accounts.
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Foreign currency is zakatable. Convert its value to your local currency on your Zakat date and include it in your calculation.
Understand how debts and liabilities affect your zakat calculation and what can be deducted.
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Debts can reduce the amount of Zakat you owe, but not all debts are treated the same way. Understanding the rules helps you calculate correctly.
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Zakat calculation treats short-term and long-term debts differently. Know the difference to calculate accurately.
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Long-term debts like mortgages and student loans are treated differently. You cannot deduct the full amount when calculating Zakat.
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Immediate debts are obligations you must pay within the next year. These can be deducted from your zakatable wealth.
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Student loans (in the UK) are usually not deductible because repayment depends on income and they may be written off. Scholars differ on this.
66 articles
19 Jan 2025
Your main home is not zakatable. Zakat is only due on property bought to sell, not property you live in.
19 Jan 2025
Property is only zakatable if you bought it to sell for profit. Your main home and rental properties for income are not zakatable.
18 Jan 2025
Many people make mistakes when calculating Zakat on investments. Avoiding these errors ensures your Zakat is complete.
18 Jan 2025
The way you calculate Zakat on assets depends on whether you are actively trading them or holding them long-term.
18 Jan 2025
Long-term investments such as retirement accounts and buy-and-hold portfolios are zakatable if you can access the funds.
18 Jan 2025
Zakat on shares depends on why you own them. Shares owned for trading are zakatable differently from shares owned as long-term investments.
18 Jan 2025
Pensions can be zakatable, depending on access. If you can withdraw the money, Zakat is due. If it is locked until retirement, scholars differ.
18 Jan 2025
Yes, money in an ISA (Individual Savings Account) is zakatable. The tax-free status does not exempt it from Zakat.
18 Jan 2025
Valuing cryptocurrency correctly is essential. Use the market price on your Zakat date and convert to your local currency.
18 Jan 2025
Cryptocurrency is a modern asset, but Islamic scholars agree it is zakatable. If you own crypto for one year, Zakat is due.
18 Jan 2025
Investment funds (mutual funds, index funds, ETFs) are zakatable. Calculate Zakat based on the current market value of your holdings.
18 Jan 2025
Shares and stocks are zakatable. The method of calculation depends on whether you are a trader or a long-term investor.