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:
 Nisab is $5,000 (for an accurate figure, see: e-nisab.com)
 You have zakatable assets worth $10,000;
 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.
Checked & Approved by Faraz Rabbani