Zakāt Ruling on Personal and Rental Vehicles
Reference: Ahkam wa Masail, Zakāt Issues, Vol. 1, Page 272
❖ Question:
I own a vehicle that I use both personally and as a taxi for rent. Please clarify:
◈ Is zakāt due on the monthly profit earned from this vehicle?
◈ Is zakāt also obligatory on the actual value of the vehicle itself?
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
◈ Ruling According to the Nature of the Vehicle
➊ If the vehicle was purchased with the intention of trade:
◈ If the car was bought for trade (i.e., to sell it later), while it is also used for rent or personal needs,
◈ Then zakāt is obligatory on the total value of the vehicle plus the profit (rental income).
➋ If the vehicle is for personal use, rental, or both:
◈ If you bought the vehicle for personal needs,
◈ Or specifically for renting out,
◈ Or for both purposes (personal use and rental):
✔ Zakāt is not obligatory on the value of the vehicle itself — neither on the purchase price nor on its current market value.
✔ Zakāt is only due on the profit (rental income), provided:
- The income reaches the niṣāb (minimum threshold),
- And one lunar year passes over it.
➌ If the vehicle is sold:
◈ If at any point you sell the vehicle, the money received will be added to your other zakāt-eligible wealth.
◈ Zakāt will then be calculated on the total amount accordingly.
◈ Clarification
The above ruling is summarized. For individual and detailed cases, it is advisable to consult reliable scholars for proper guidance.
Hādhā mā ʿindī, wallāhu aʿlam biṣ-ṣawāb.