Are Credit Card Liabilities Included in Zakat Calculation?

When calculating Zakat, debts, and liabilities play a crucial role in determining your net assets. 

If you have outstanding credit card payments, here’s how they impact your Zakat calculation:

• Deductible Liabilities: 

If you owe an amount on your credit card and will repay it within 12 months, you can deduct it. This ensures that your Zakat is based on your actual available wealth.

• Non-Deductible Amounts: 

Any credit limit or borrowing capacity that has not yet been utilized cannot be deducted. Only the portion that has been spent and is due for repayment is considered.

• Overall Calculation: 

Zakat is calculated on your net wealth, which includes cash, savings, gold, silver, and other qualifying assets after deducting immediate debts. If your remaining wealth meets or exceeds the Nisab of Zakat, then you are obligated to pay it.

By carefully assessing your outstanding credit liabilities, you can ensure that your Zakat calculation is accurate and under Islamic guidelines.

And Allah knows best!