Can You Provide Guidance on How Zakat Applies To My Situation?
Answered by Shaykh Muhammad Carr
Question
I sold my residential property and another inherited from my father, which used to generate rental income for me. The rental income was crucial for covering my monthly household expenses. Unfortunately, I am currently without employment or any alternative source of income after liquidating both assets. I am relying on the proceeds from these sales to meet my domestic needs. Could you offer guidance on how Zakat applies in my current situation?
ِAnswer
In the Name of Allah, the Most Merciful and Compassionate.
Zakat is payable when the amount of cash in your possession reaches or exceeds the nisab (the zakatable minimum), and you have maintained it for a complete Lunar Year.
The funds used for household or other expenditures are not factored into your zakat equation.
Obligation
Zakat is obligatory:
- for every free Muslim (male, female, adult, or child);
- who has possessed a zakat-payable amount (nisab – the minimum that necessitates Zakat)
- for one lunar year. [Nawawi, Minhaj al-Talibin]
Zakat on Rental Property
Zakat is payable on property bought to make a profit from reselling. Zakat is not due on rental property. Rental property is akin to tools of trade and, therefore, not subject to zakat.
Make Your Zakat Do More
If you do owe zakat, I would advise you to consider supporting the Islamic Scholars Fund. Its reach and impact are enormous, and you’d be supporting many scholars and students who make a real difference in the lives and faith of many Muslims worldwide.
Please take a look at the ISF Report.
See also: Zakat: A Comprehensive SeekersGuidance Reader
I pray this is of benefit and Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
