Do Debts Reduce My Zakat?

Short answer: The weightier evidence-based view: you pay zakat on the nisab-level wealth in your hands despite owing debt; debt does not block zakat. Many scholars did allow deducting what is currently due for payment (the imminent installment) — an acceptable position. There is no basis for deducting the whole balance of a long-term loan. Details: The Prophet ﷺ sent zakat collectors to take from people's apparent wealth without ever asking about debts, nor did the Companions. This is the fatwa of Shaykh al-Uthaymin and Shaykh Ibn Baz: zakat attaches to the wealth itself, while debt is a separate liability on the person. If you wish, first pay the installment now due, then zakat on the remainder — satisfying both concerns. Evidence: Quran 9:103 (zakat on existing wealth, not a net figure); Sahih al-Bukhari 1395 (Muʿadh's instruction — no debt inquiry); Shaykh al-Uthaymin: 'The correct view is that debt does not prevent the obligation of zakat.' Application: In this platform's calculator, enter only currently-due liabilities in the deduction field — not the full balance of long-term loans. For complex individual cases, consult a qualified scholar.