Do Gift Cards With Available Cash Require Zakat?

Yes, gift cards with cash value are considered Zakatable assets, similar to physical money. 

Here's how Zakat applies to gift cards:

• Gift Cards as Zakatable Assets: 

When you receive a gift card loaded with a specific monetary value, it is treated as an asset. Zakat is due on any wealth that reaches the Zakat nisab and has been in your possession for a full lunar year.

• Zakat on Remaining Balance: 

If there is any balance left on the gift card by your Zakat anniversary, it must be included in your total Zakatable assets. Zakat calculation is based on the value of the gift card, just like you would pay Zakat on cash savings.

• Example Calculation in PKR:

Let’s say you receive a gift card with a balance of PKR 50,000. If your other Zakatable assets meet or exceed the Nisab threshold (around PKR 85,000), you will need to pay Zakat at the rate of 2.5% on the PKR 50,000 balance when your Zakat due date arrives.

Zakat payable would be:
PKR 50,000 × 2.5% = PKR 1,250

• Include Gift Cards in Zakat Calculation: 

Even though the money is stored in the form of a gift card, as long as it has been in your possession for a full year, it counts toward your Zakatable wealth.

• Paying Zakat on E-Money: 

Since gift cards are loaded with electronic money, they are treated the same as cash for Zakat purposes. Ensure that all assets, including gift card balances, are accounted for when calculating your Zakat. Not all assets are subject to Zakat understanding which ones qualify is essential for accurate calculations.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Required on a Cheque?
• Does Earned Interest Affect Missed Zakat Payments?
• Is Money Saved for Buying a House Liable for Zakat?
• Why is Zakat Required on Paper Money?
• Are Gift Cards with Cash Balances Subject to Zakat?
• Is Zakat Required on Money Stored in a Bank Account?