Advertisement

Do I pay zakat on money I'm saving for a house or wedding?

By Creator · · 1 min read

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:

قُلْ إِنَّ رَبِّى يَبْسُطُ ٱلرِّزْقَ لِمَن يَشَآءُ مِنْ عِبَادِهِۦ وَيَقْدِرُ لَهُۥ ۚ وَمَآ أَنفَقْتُم مِّن شَىْءٍ فَهُوَ يُخْلِفُهُۥ ۖ وَهُوَ خَيْرُ ٱلرَّٰزِقِينَ "Say, 'Indeed, my Lord extends provision for whom He wills of His servants and restricts [it] for him. But whatever thing you spend [in His cause] - He will compensate it; and He is the best of providers.'" Quran 34:39

Many people find that paying zakat brings blessing (barakah) to their savings and plans. See Does giving charity make you poorer?

Once you buy

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.
Key points
  • 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.
Tip: Add a "zakat" line to your savings tracker, about 2.5% of the balance each year, so you're never caught short.

Comments (0)

Advertisement
Advertisement