What Debts Can Be Deducted From Zakah?
A key part of Zakah calculation is deducting your debts to arrive at your net zakatable wealth.
Deductible debts (reduce your zakatable wealth):
- Personal loans and bank loans - Credit card balances - Outstanding bills (utility, rent, etc.) - Money borrowed from friends or family - Business debts and payables
Non-deductible liabilities:
- Future expenses you have not yet incurred - Mortgage on your primary residence (scholarly difference) - Long-term installment payments (some scholars differ)
General rule: A debt is deductible if it is due within the current lunar year and you are obligated to pay it back.
Example: If you have ₦5,000,000 in assets and ₦2,000,000 in debts, your net zakatable wealth is ₦3,000,000. Zakah is calculated on ₦3,000,000, not ₦5,000,000.
Always consult a scholar for complex debt situations.
Disclaimer
This tool provides estimated Zakah calculations based on standard Hanafi Nisab values (87.48g gold, 612.36g silver) and the standard 2.5% Zakah rate. Results are for educational purposes only and do not constitute religious or legal advice. Please consult a qualified scholar for personalized guidance.