Is a Debt Due in Three Years Deductible from Zakat?

No, you cannot deduct a debt due in three years from your Zakat calculation.

According to Islamic guidelines, Zakat is calculated based on your net wealth, which includes your assets minus your liabilities. However, only certain types of debts can be deducted when calculating Zakat.

Here’s what you need to know:

• Short-Term Debts:

Debts that are due within the next 12 months can be fully deducted from your total assets before calculating Zakat. This includes bills, loans, or any other financial obligations that must be settled within the year.

• Long-Term Debts:

For long-term debts, such as mortgages or installment loans, only the portion of the debt that is due within the current year can be deducted from your assets. You cannot deduct the entire amount if part of the debt is not due until a future year.

• Debts Due After One Year:

A debt that is due in three years does not qualify for deduction from your Zakat calculation, as it is considered a long-term liability that is not yet due within the current year. Only debts that are due within the next 12 months can be deducted from your wealth.

Thus, debts that are due in the short term (within a year) or installments due within the current year can be deducted. However, long-term debts that are due in three years are not eligible for deduction when calculating your Zakat.

And Allah knows best!