Do I Need to Pay Zakat on Rental Income from My Property?

Yes, you are required to pay Zakat on rental income from your property. 

Here’s how it works:

• Rental Income: 

As long as your property is being rented out and generating income, you must pay Zakat on the revenue earned from renting the property. This income is part of your wealth.

• No Duplication in Zakat: 

Zakat is not applied twice to the same wealth. You pay Zakat only on rental income, not on the property itself unless it is sold.

• If the Property is Vacant: 

If your tenant leaves and the property is no longer rented, but you still own the property and intend to sell it, you will pay Zakat on its market value instead of rental income.

• Market Value Calculation: 

Once the property is for sale, Zakat is calculated based on the property’s current appraisal value.

• Zakat on Total Wealth: 

Zakat is due on all your wealth, including rental income, savings, investments, and properties held for sale. The standard rate is 2.5% of your total wealth annually.

By paying Zakat on your rental income while it's being rented, and later on the property’s value when it’s for sale, you fulfill your obligation.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Obligatory on Gifted Land?
• Is Zakat Due on Property Bought for Resale and Leased?
• Is Zakat Required on an Undivided Estate?
• Is Zakat Required on Land Bought for Resale in 3-5 Years?
• Do I Have to Pay Zakat on My Home?
• Is Zakat Due on Money I Intend to Gift in the Future?