Zakat on Property [Detailed]

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If a person owns 2 homes, does he have to pay Zakat for the second house? Is Zakat on the total value of the house or rent of the house?


In the Name of Allah, the Most Gracious, the Most Merciful.

As-Salāmu ‘Alaykum Wa-Rahmatullāhi Wa-Barakātuh.

There are multiple scenarios in the enquired question:

  1. Clear intention for personal use

If a house(s) is purchased for personal use, then there is no Zakat on the house(s) regardless of how many houses one owns.[1]

  1. Clear intention to re-sell

If the house was purchased with the intention to re-sell; Zakat has to be paid on the market value (not the cost price) of the house each Zakat date.[2]

  1. Clear intention to lease/rent out

If the house was purchased with the intention of earning rental income; Zakat will only be on the rental income. The rental income will be added with the other Zakatable wealth and if the Zakatable wealth reaches Nisaab, Zakat will be Fard.[3]

4. Conditional intention

If the house is purchased with the intention of personal use and only to re-sell if there is capital appreciation. There will be no Zakat on the house.[4]

And Allah Ta’ala Knows Best.

Owais Siddiqui

Student Darul Iftaa
Vancouver, Canada

Checked and Approved by,
Mufti Muhammad Zakariyya Desai.

Zakat on Property [Detailed]