Is zakat obligatory on a taxi from which its owner receives no daily income due to its numerous problems and accidents?
Cars, concerning zakat, are divided into two types: Cars designated for sale and purchase, on which zakat is due as trade goods. And cars designated for rental or personal use, on which no zakat is due, based on the Prophet’s (peace be upon him) saying: “There is no sadaqa [zakat] on a Muslim for his slave or his horse.” If the car is designated for rental, zakat is not due on the car itself, but on the rental income derived from it, provided that the income reaches the nisab and a full year passes while it is in the owner’s possession. If the income does not reach the nisab, or if it is spent before a full year passes, then no zakat is due on it.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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