Not everyone is in an ideal financial condition when it comes to paying zakat. Some people have a large income but also have heavy debts. Some are just starting a business and still have capital installment obligations. Others have urgent family needs, so their savings are not yet stable. This situation often raises the question of whether zakat is still obligatory when someone still has debts. Or whether debt can be a reason for not paying zakat.
In Islam, zakat is established to maintain social balance and purify wealth. However, at the same time, Islamic law also considers the personal circumstances of a Muslim. Therefore, scholars explain in detail the relationship between zakat and debt.
Basic Principles of Sharia Law on Zakat and Debt
Basically, zakat is only obligatory for people who meet two main conditions, namely nishab and haul. Nishab is the minimum amount of wealth required for zakat, while haul is the period of ownership of the wealth for one year. However, these conditions are related to one important thing, namely whether the wealth is truly wholly owned without being bound by obligations that reduce its value. This is where debt becomes a relevant factor.
If someone has wealth that reaches nishab, but at the same time has debts that must be paid and the amount of debt reduces the wealth to below nishab, then the zakat obligation is waived. This is because the wealth is not legally wholly owned, but is still bound by obligations.
Most scholars from the Shafi’i, Maliki, and Hambali schools of thought argue that debt can reduce the obligation to pay zakat. This means that if someone has debts that reduce the value of their assets to below the nisab, they are not obliged to pay zakat. They argue that zakat is obligatory on assets that are truly owned without any significant obligations that reduce their value.
However, there are also scholars who argue that zakat is still obligatory as long as the wealth reaches the nisab, even if a person has debts. Scholars such as Yusuf al-Qaradhawi emphasize that if a person has sufficient wealth, while their debts are long-term and do not directly affect their ability to live, then they are still obliged to pay zakat according to the specified rate.
This difference arises from how to measure whether debt truly burdens a person. There are productive debts, such as business capital debts that generate profits. There are also consumptive debts that can actually be restructured without reducing a person’s ability to pay zakat.
Read also: Do you still have to pay zakat if you have debts?
How to Determine Whether Zakat is Obligatory in the Case of Debt
To answer whether zakat is obligatory or not, scholars often emphasize one principle, namely ability. If, after deducting the principal debt, a person still has assets worth nishab, then zakat is still obligatory. However, if the assets no longer reach nishab due to debt obligations, then zakat may be postponed until the financial condition is stable.
As a simple illustration, if someone has savings and assets worth nishab, but has debts that must be paid immediately and the amount of debt reduces their savings to below the nishab limit, then they are not obliged to pay zakat. However, if they have long-term installments, while their savings remain above nishab, zakat can still be paid.
Some points that are often used as guidelines include: First, zakat is obligatory on assets that are free from debt obligations that reduce the nishab value. Second, long-term debt does not always negate zakat if one’s living conditions are stable. Third, zakat can be postponed if the conditions are truly difficult and basic living needs are not met. Fourth, each case should be viewed individually because financial conditions are not always the same.
For some people, paying zakat while still in debt is a way to obtain blessings and peace of mind. In many cases, zakat does not cause a person to become poor, but rather helps them organize their finances. People who pay zakat often feel lighter because they have fulfilled their obligations and believe that Allah will provide a way to earn a living.
However, Islam does not force people to give beyond their means. If debt causes a heavy burden and eliminates the basic ability to meet basic needs, zakat may be postponed until conditions improve. The point is to be honest with oneself and clear in one’s intentions in performing worship.
Distributing Zakat through Trustworthy Institutions
When someone decides to pay zakat even though they still have debts, it can be distributed through a trustworthy zakat institution. Dompet Dhuafa is one of the professional zakat institutions in managing zakat, infaq, and waqf funds. The zakat distributed is not only given consumptively, but also used for sustainable education, health, economic, and social programs that provide long-term benefits.
In a situation where someone still has debts, distributing zakat through a trusted institution can provide peace of mind because the assets will reach the rightful recipients in accordance with sharia provisions.
The discussion about zakat and debt shows that Islam has a wise and balanced view. Zakat remains an obligation for those who are able, but Islamic law also considers a person’s financial condition. Scholars differ on whether debt nullifies the obligation of zakat, and this difference has a strong basis. The most important thing is to carry out zakat based on knowledge, not following one’s desires, and understanding that everyone has different circumstances.
As long as a person has assets that reach the nishab after taking into account their debts, zakat remains obligatory. If not, zakat may be postponed until conditions improve. To fulfill zakat safely and effectively, Dompet Dhuafa can be a partner that helps channel sustenance to those in need.