IslamQA

Do I pay Zakat on the annual salary that I earn?

Answered according to Hanafi Fiqh by Darulfiqh.com

Question:

Do I pay Zakat on the annual salary that I earn?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Answer:

Zakat is not like income tax where the annual salary is taxed after a tax-free threshold. Instead, Zakat is simply paid on the residual/net wealth on one’s Zakat anniversary. Thus, the amount earned in the course of the year is irrelevant as per the calculations in the Hanafi school. Zakat will be paid on the net wealth one has on their Zakat anniversary.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam, 
www.darulfiqh.com
 
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This answer was collected from DarulFiqh.com, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).

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