Question:

Assalam Alaikum,

I would like to know the best way to calculate zakat. There are many website that offers calculations based on income and assets you have. Please advise as I owned rental properties as well as other business I also have mortgage and other liabilities such as credit card bills ( for which I pay no interest ).
Jazakallah Khair

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, after deducting one’s liabilities (see definition below), if one has Zakatable wealth equal to or more than the amount of Nisaab, then 2.5% of this amount must be paid in Zakah.

There is no Zakah on rental properties. Zakah is due on the market price of the business stock.

See the terminologies below:

Terminologies:

Zakatable Assets: Gold, Silver, Cash, and business stock

Liabilities: Any outstanding (not future) debts that have not yet been paid for and are due within the next 12 months.

Nisaab: 612.36 grams of silver ($343 as of June 13, 2016)

And Allah Ta’āla Knows Best

(Mufti) Abdul Azeem bin Abdur Rahman

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