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  • Can We Adjust Zakat With Taxes

    Posted by Anand Ahmed on April 13, 2023 at 3:58 am

    Assalamu alaykum sheikh i wanted to know can we deduct zakat with taxes for example government charging 1lakh tax every year and my zakat is 2.5 lakh every year can i pay 150 lakhs of zakat as im already paying taxes. Thank u

    Umer replied 1 year ago 2 Members · 1 Reply
  • 1 Reply
  • Can We Adjust Zakat With Taxes

    Umer updated 1 year ago 2 Members · 1 Reply
  • Umer

    Moderator April 13, 2023 at 3:15 pm

    Yes, taxes paid to the government can be adjusted against Zakat obligation. Government taxes include all forms of actual taxes levied by the government including but not limited to, incomes tax, sales tax, property tax, wealth tax etc. (Please see: Discussion 81522 • Reply 81610)

    For Example:

    You received Salary of $1000 for the year, the zakat due on this is $100 (assuming that it is above Nisab because amount of production/earning/wealth below Nisab is exempt from Zakat). You paid $150 in government taxes.

    Now come year-end (which is one date in the year fixed by you for calculation of Zakat on wealth), your Zakat on wealth comes out to be $200. You paid other government taxes of $200 throughout the year.

    Your gross Zakat obligation = 100+200 = $300

    Total paid in taxes= 150+200 = $350

    Net Zakat obligation = 300-350 = negative $50

    In this scenario, you have paid more in taxes than your zakat obligation, hence you are not required to pay any Zakat this year. You can carry forward this $50 of more taxes paid this year for adjustment against Zakat obligation of next year.

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