Do I pay zakat on my house and car?
No. There's no zakat on the home you live in, the car you drive or other things you use personally, like furniture, clothes and your phone. Zakat is on wealth that grows or is stored, such as cash, gold and investments. Property you bought to resell for profit is different, because it's treated as trade goods.
Personal-use items are exempt
The Prophet Muhammad ﷺ said, "There is no Zakat either on a slave or on a horse belonging to a Muslim" (Sahih al-Bukhari 1464). Scholars understood this as a general rule: things you own for personal use aren't zakatable, however valuable they are. A horse was the car of its day.
What's exempt
- The home you live in, even if it's large or valuable.
- Your car, motorbike or bicycle.
- Furniture, appliances, clothes, books and electronics.
- Tools and equipment you use for work.
- A holiday home you use yourself (most scholars).
Gold and silver are the main exception, since they're treated as money. Worn jewelry is debated; see Do I pay zakat on gold jewelry I wear?
Property bought to flip
If you buy a house or car intending to sell it for profit, it's trade goods. You pay 2.5% of its current market value on your zakat date each year until you sell it. If you buy property to rent out, the property itself isn't zakatable, but the rent you save is. See Do I pay zakat on rental property?
Savings for a house or car
Cash you're saving to buy a home or car is still cash, so it's zakatable until you spend it. See Do I pay zakat on money I'm saving for a house or wedding? Mortgage questions are covered in Can I have a mortgage as a Muslim?
- No zakat on your home, car or personal belongings.
- Work tools and equipment are exempt too.
- Property bought to resell is zakatable.
- Cash saved to buy them still counts.
People also ask
Do I pay zakat on rental property?
Not on the property's value. You pay zakat on the rent you've saved, along with your other cash. Property for resale is different.
Read the full answer →Do I pay zakat on gold jewelry I wear?
Scholars differ. The Hanafi school says yes; most others say no for jewelry worn normally. Gold kept as savings is zakatable.
Read the full answer →Do I pay zakat on crypto?
If you hold crypto, most scholars who allow it say yes: 2.5% of its market value on your zakat date. Here's how to handle it.
Read the full answer →Do I pay zakat on stocks?
Yes. Shares you trade pay 2.5% of market value. For long-term holdings, many scholars use the company's zakatable assets.
Read the full answer →Do I pay zakat on my 401(k) or pension?
Scholars differ. Some say pay yearly on what you could withdraw after penalties and tax; others say pay when you receive it.
Read the full answer →