Zakat on Business Assets
Calculate Zakat on business inventory, accounts receivable, cash reserves, and trade goods. A comprehensive guide for Muslim business owners.
Key Takeaways
- Zakat applies to trade goods (inventory held for sale)
- Business cash and bank balances are zakatable
- Accounts receivable (money owed to you) are generally included
- Fixed assets (equipment, machinery, vehicles) are NOT zakatable
- Deduct business debts due within the year
What Business Assets Are Zakatable?
Inventory / trade goods
Products held for sale, raw materials intended for goods to sell.
Business cash & bank balances
All cash in business accounts — checking, savings, merchant accounts.
Accounts receivable
Money owed to you by clients/customers. Include expected collectible amounts.
Short-term investments
Any business investments — stocks, money market, short-term bonds.
Fixed assets & equipment
Machinery, vehicles, computers, office furniture — NOT zakatable (used in business, not for sale).
Business real estate (used)
Office, warehouse, factory you operate from — NOT zakatable.
Goodwill & intellectual property
Brand value, patents, trademarks — NOT zakatable as they are intangible.
Business Zakat Formula
Net Zakatable Assets = Zakatable Assets − Current Liabilities
+ Zakatable Assets
- • Inventory at cost or market value
- • Cash & bank balances
- • Accounts receivable (collectible)
- • Short-term investments
− Deductible Liabilities
- • Accounts payable (due within year)
- • Short-term loans due
- • Accrued expenses
- • Employee salaries due
Zakat = Net Zakatable Assets × 2.5%
Quick Zakat Estimate
Enter the total value of your business assets to calculate
Zakat Due
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Full detailed calculatorStep-by-Step Calculation
Value your inventory
Use cost price or current market value (whichever is lower, to be conservative).
Add business cash
Total all business bank accounts, petty cash, merchant accounts.
Add accounts receivable
Include only amounts you reasonably expect to collect. Exclude bad debts.
Subtract current liabilities
Deduct accounts payable, short-term loans, and accrued expenses due within the year.
Check against Nisab
Combined with personal wealth, is the total above Nisab for one lunar year?
Calculate 2.5%
Apply 2.5% to your net zakatable business assets.
Business Type Considerations
Retail / E-commerce
Inventory is your primary zakatable asset. Value all products in stock at cost or market.
Service businesses
No inventory, so Zakat is mainly on business cash and accounts receivable.
Manufacturing
Include raw materials, work-in-progress, and finished goods. Exclude machinery & equipment.
Freelancers / Consultants
Zakat on business earnings saved. No inventory to worry about — focus on cash and receivables.
Partnerships / LLCs
Calculate Zakat on your ownership percentage of the business's zakatable assets.
Quick Answer
Zakat on business assets is 2.5% of net zakatable business wealth: inventory at market value plus receivables and cash, minus short-term liabilities. Fixed assets used in operations are generally exempt.
Key Takeaways
- Zakat applies to inventory, business cash, and accounts receivable
- Fixed assets (equipment, machinery, vehicles) are exempt from Zakat
- Deduct current liabilities: accounts payable, short-term loans, accrued expenses
- Value inventory at cost or market value, whichever is lower
- Personal and business zakatable assets are combined for Nisab threshold
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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Frequently Asked Questions
Do I pay Zakat on business equipment?
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No. Fixed assets used in the business (computers, vehicles, machinery, furniture) are exempt from Zakat.
What about a business vehicle?
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If used for business operations — exempt. If you're a car dealer and it's inventory — zakatable at market value.
How do I value inventory?
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Use cost or current market value, whichever is lower. This is the conservative approach and recommended by most scholars.
Can I combine personal and business Zakat?
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Yes, and in fact you should. Your personal and business zakatable assets are combined to check against Nisab.
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