Is Zakat Due When My Mortgage is Greater Than My Assets?

Hanafi Fiqh

Answered by Ustadh Tabraze Azam

Question: When I calculated all my assets my liabilities are greater due to my house mortgage payment.  In this case, zakat is due on me?

Answer: Assalamu alaikum wa rahmatullah,

I hope you are in the best of health and spirits, insha’Allah.

A house mortgage is considered a long-term debt. As such, one may only deduct the immediate, upcoming payment. [`Ala al-Din `Abidin, al-Hadiyya al-`Ala’iyya]

For example, consider the following scenario:

[1] Nisab is $5,000 (for an accurate figure, see:

[2] You have zakatable assets worth $10,000;

[3] And a long term mortgage of $250,000 of which one pays monthly installments of $2,500;

One deducts the immediate payment of $2500 and pays zakat on $7,500.

On the other hand, if one’s immediate payment was $6,000, one would be left with $4,000 which is below nisab and hence non-zakatable.

See also: Zakat & Long-Term Debts

And Allah alone gives success.


Tabraze Azam

Checked & Approved by Faraz Rabbani