Can I Deduct a Council Tax Bill When Calculating My Zakat?

Yes, you can deduct a council tax bill when calculating your Zakat, but only under specific conditions:

• Bill Incurred and Due:
  If the council tax bill has already been incurred and is due for payment (e.g., January 2024), it can be deducted from your assets when calculating Zakat.
• Bill Due Within 12 Lunar Months:
  You can also deduct the council tax bill if it is due within the next 12 lunar months. Zakat is calculated on your net wealth, and any liabilities due within a year can reduce the amount of wealth subject to Zakat.
• Current Liabilities Only:
  Only liabilities that are already due or expected within the coming year should be deducted from your total assets. Future obligations beyond 12 months are not considered in Zakat calculations.
• Excluding Future Bills:
  If the council tax bill is not due within the next 12 months or has not yet been incurred, it should not be deducted from your Zakat.

Thus, you can deduct council tax bills that are currently due or expected within the next 12 lunar months. Any future liabilities beyond that timeframe should not be considered in your Zakat calculation.

Always ensure that deductions align with the guidelines for accurate Zakat calculation.

And Allah knows best!