Do I pay zakat on money I'm saving for a house or wedding?
Yes. Money saved for a future goal, whether a house deposit, a wedding, a car or university, is still your money. If your total zakatable wealth is above the nisab for a lunar year, you pay 2.5% on it, including those savings. Your plans for the money don't exempt it until you actually spend it.
Why it counts
Zakat is due on wealth that you own and that has stayed with you for a year (Sunan Ibn Majah 1792). Scholars agree that the intention to spend money later doesn't change this. Until the deposit is paid or the venue is booked, the money sits in your account, fully yours. Only money that has actually been spent, or a debt that's due now, comes off. See Do I pay zakat on my savings account?
It won't shrink your goal much
At 2.5%, zakat on a €20,000 house deposit is €500 a year. It can feel like a setback, but Allah promises to replace what's spent for His sake:
Many people find that paying zakat brings blessing (barakah) to their savings and plans. See Does giving charity make you poorer?
Once you buy
- A home you live in: no zakat on it. See Do I pay zakat on my house and car?
- Wedding: money spent on the wedding is gone, so no zakat. Mahr given to the bride becomes her wealth, and she pays zakat on it if she keeps it above the nisab. See What is mahr and how much should it be?
- Deposits paid to a builder or seller are generally no longer your zakatable cash.
Planning tips
- Budget zakat as part of your savings plan, not as a surprise.
- Use a halal, non-interest savings account.
- If your goal date is close to your zakat date, check with a scholar whether bills already due can be subtracted.
- Savings for a goal are zakatable.
- Intention to spend doesn't exempt them.
- Once spent, there's no zakat on that money.
- Plan zakat into your savings budget.
People also ask
Does a husband have to pay his wife's zakat?
No. A wife's money and jewelry are hers, so their zakat is her duty. A husband can pay it for her with her consent.
Read the full answer →Do children have to pay zakat?
Most scholars say zakat is due on a child's savings, paid by the guardian. The Hanafi school says no. Zakat al-fitr is different.
Read the full answer →Do I pay zakat on money someone owes me?
If the borrower can and will repay, most scholars say yes, yearly or once you're repaid. Doubtful loans are treated differently.
Read the full answer →Do I have to pay zakat if I have debt?
It depends on the debt. Many scholars let you subtract debts due now, not a whole mortgage or student loan. Views differ.
Read the full answer →Do I pay zakat on my business?
Yes, on your stock for sale, cash and money owed to you, minus short-term debts. Equipment and premises are exempt.
Read the full answer →