Zakat and debts: can you deduct what you owe?
AmanaFi team · Updated · 1 min read
Many scholars allow deducting short-term debts due from the zakat base. For long debts, such as a mortgage spread over years, opinions differ and you need to distinguish.
Debts generally deducted
Debts that have fallen due or will within the year.
- Suppliers to pay.
- Instalments due but unpaid.
- Sums owed to people.
Long-term debts
For a loan spread over many years, some deduct only the instalments of the coming year; others, the whole. Views vary between schools and fatwa bodies.
A careful method
Apply consistently the opinion of the authority you follow. Keep a record of your debts and their due dates on your calculation date, which makes the deduction clear and verifiable. If in doubt, consult a qualified person.
Frequently asked
If my debts exceed my savings, do I owe zakat?
If, after deducting the debts retained, nothing is left above the nisab, there is no zakat to pay on money this year.
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