Does Unlawful Income Require Zakat Payments?

No, zakat is not due on unlawful income. 

Instead, such wealth must be disposed of in a way that aligns with Islamic teachings. 

Here are the steps to handle unlawful income:

• Sincere Repentance:
• The first and most important step is to repent sincerely for engaging in prohibited financial activities.
• One should make a firm commitment to avoid such earnings in the future.
• No Zakat on Haram Wealth:
• Zakat is only due on lawful income and assets.
• Wealth obtained through impermissible means does not qualify for zakat because it is not rightfully owned.
• Disposing of Illicit Wealth:
• Money obtained unlawfully must be returned to its rightful owner.
• If the owner is unknown or cannot be found, the entire amount should be given to charity.
• This act does not count as a rewardable charity (sadaqah) but as a way to cleanse oneself of impermissible earnings.
• Impact on Zakatable Assets:
• Since unlawful wealth is not considered legitimate, it should not be included in zakat calculations.
• If one has mixed lawful and unlawful wealth, the haram portion must be separated and disposed of before calculating zakat on the remaining lawful assets.

Unlawful wealth is a burden that must be removed to attain financial purity. Only lawful earnings are subject to zakat, and one must ensure their wealth is purified before fulfilling this obligation.

And Allah knows best!