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Zakaah on cars

Fatwaa ID: 2259

Question:
Assalamualaikum wrwb, I recently bought a car and still have my previous car. I don’t use that car and intend to sell it after some engine repairs. My question is regarding calculating zakat for it. Do I need to take out zakat on it and if so would the value of the car be as it is now or after I make repairs. JazakAllah khair

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

In principle, cars are not zakaatable assets. There is no zakaah on cars. However, if one purchased a car for the purpose of immediate resale, then that is counted as a trade good and thus will be subject to zakaah. In the enquired situation, while you have the intention to sell your old car, you did not purchase it for that purpose. Thus, it is not regarded as a trade good. There is no zakaah due on your old car.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

09/25/1445 AH – 04/05/2024 CE | AMG3-4519

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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