Islam and the Quran

Are our cars taxable (subject to Zakat)?

Question: Are our cars taxable (subject to Zakat)?

Personal property is not taxable. Whether it is luxurious or not, you don’t have to give tax for the house you live in and for the car you drive. Tax is given from the surplus property and from income generating property like trade goods, lands, animals and stocks. If you have a house or a car for rent, you give tax from its earnings, not from the value of the property. If you are a dealer of real estate property, houses you own will be your commodity and you give tax from their total value. If you are a dealer of cars, you give tax from the cars you own.

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