Can the Car Loan be Subtracted From My Zakat Calculation?

Yes, it is permissible to deduct a car loan from Zakat.

Here are the key points to consider:

• Deduction Allowed: You can deduct up to one year’s worth of loan payments from your wealth when calculating Zakat.
• Excluding Interest: Only the principal portion of the loan repayment is considered; interest should not be part of the Zakat calculation.
• Short-Term Debts: This deduction applies to debts due within the upcoming year (i.e., the next 12 months).
• Debt Duration: If the loan extends beyond a year, only the payments due within the year should be subtracted from Zakat.
• Zakat Calculation: After deducting the loan repayment amount, the remaining wealth calculates your Zakat obligation.

Hence, you can subtract up to one year of car loan payments from your total assets when calculating Zakat, provided the debt is due within that time frame.

And Allah knows best!

Other Zakat Questions You May Have

• Does a Maintenance Loan Count for Zakat Calculation?
• Can Unpaid Zakat Turn into a Debt?
• Are Debts Due in Three Years Eligible for Zakat Deduction?
• Is a Creditor Required to Pay Zakat on a Loan?
• Is Zakat Obligatory on Money Lent to a Needy Person?
• Can Loans to Siblings Be Deducted from Zakat?