Question on Paying Zakâh: On what and how much Zakâh should we pay?

We have 50,000 USD in our bank account while we have an amount of 5,000 USD in a separate account for our expenditures. We have provided two people with a loan; the total amount is 10,000 USD. I wonder on what we need to pay Zakah? And what will be the total amount of Zakah that we need to pay?

Answer:

Firstly, Zakâh is an individual obligation, so Zakâh is due upon each single person who must pay their Zakâh separately from each other, including spouses.

For the purposes of Zakâh, you should calculate how much you each own from your assets and calculate and pay the Zakâh accordingly.

It is permissible for the husband to pay on behalf of his wife or vice versa with their permission.

Assuming the money belongs to one person, you would add all three amounts together and pay Zakâh on the total.

However, you can deduct any expenses (bills, rent, etc.) that have already been incurred. See our calculator guide for more information.

You also have the choice of paying the Zakâh due on the loans (10,000) when you receive them. If you choose to do this, you will need to keep an account of the amount and the number of years as you would need to pay for all previous years when you receive your money. If that sounds complicated and considering the relatively small amount due, I would suggest paying every year with the rest of your Zakâh.

So, assuming no other expenses/debts, the total Zakâh due would be 50,000+5,000+10,000 = 65,000 x 2.5% = $1,625.00.

And Allâh knows best.

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