Is Zakat Obligatory If Someone Has Debt Such as Student Loans or a Mortgage?
Question
Salam! (Asking on behalf of my wife) she was discussing the zakat al Fitr with people & some people have different opinions. Some people are saying that you are not required to give charity on anything including the gold sitting or savings you have in your account if you have a student loan, or mortgage or anything that you owe. So the question is: if you have debt was it mandatory for zakat. Please help us both understand
Answer
Alhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain.
It is important first to clarify that there are two different obligations being discussed: zakat al mal (the annual zakat on wealth) and zakat al fitr (the charity given at the end of Ramadan). The ruling regarding debt differs between them.
1. The Shari Context
Zakat is an obligation upon wealth that reaches the nisab and remains in one’s possession for a lunar year. Allah says:
“Take from their wealth a charity by which you purify them and increase them.”
Surat al Tawbah 9:103
Zakat al fitr, however, is connected to the person rather than wealth. The Prophet ﷺ said:
“The Messenger of Allah obligated zakat al fitr as one sa of dates or one sa of barley upon every Muslim.”
Sahih al Bukhari and Sahih Muslim
This indicates that zakat al fitr is due upon individuals who possess enough food beyond their basic needs on the day of Eid.
2. Scholarly Discussion
The scholars distinguish between zakat al mal and zakat al fitr when considering debts.
Regarding zakat al mal, the jurists differed on whether debts reduce the zakatable amount.
Scholars from the Hanafi, Maliki, Shafii, and Hanbali schools stated that debts which are immediately due may be deducted from one’s zakatable wealth. If after subtracting those debts the remaining wealth falls below the nisab, zakat is not obligatory.
However, long-term debts such as mortgages or structured student loans are often treated differently by contemporary scholars. and they all hold that only the current due installment is deducted, not the entire long-term loan amount.
Regarding zakat al fitr, the majority of scholars hold that debt does not remove the obligation as long as a person has enough food for the day of Eid and the night before. Since zakat al fitr is a small amount and tied to the person, not wealth accumulation, it remains obligatory even for many people who have debts.
3. Application to the Question
If the question refers to zakat al fitr:
Debt such as student loans or a mortgage does not normally remove the obligation. If a person has enough food for themselves and their dependents for the day and night of Eid, they should give zakat al fitr.
If the question refers to zakat on wealth such as gold or savings:
Then debts may affect the calculation. The general method is:
Calculate all zakatable assets such as cash, savings, and gold.
Subtract only immediate debts that must be paid.
If the remaining amount still reaches the nisab, zakat is due at 2.5 percent.
For long-term debts like mortgages or student loans, scholars only deduct the upcoming payment rather than the entire loan amount.
4. Relevant Usul Principle
لا واجب مع العجز
There is no obligation when one is unable
In usul al fiqh, obligations are tied to genuine ability. If debt and basic needs leave a person without surplus reaching nisab, zakat al mal is not obligatory. Likewise, if a person cannot meet basic Eid needs, zakat al fitr is not required.
Final Ruling
Having debt such as student loans or a mortgage does not automatically cancel zakat obligations. Zakat al fitr is generally still required if a person has basic provisions for the day of Eid. For zakat on wealth, debts may be deducted from assets, and zakat is due only if the remaining wealth still reaches the nisab.
And Allah knows best.