The Ruling on the Zakah of Cars Used for Personal Use and for Hire

Question:
The listener, Mustafa Shalabi Ibrahim, from Abha, sent a question asking about a personal car: whether zakah is due on it, and also about a taxi. May Allah reward you with good.

Answer:
A personal car for use, and taxis, do not have zakah due on them. However, if the rental income reaches the nisab (minimum threshold for zakah) after a lunar year has passed, its owner must pay zakah on it. If he has dirhams he earned from the car, and a lunar year has passed on them, and they reach the nisab—fifty-six silver riyals or more, or their equivalent—he pays zakah on them. As for the cars themselves... there is no zakah on the car because it is not prepared for sale; it is prepared for use. Zakah is only obligatory in goods prepared for trade and sale. If he prepares the car for sale, then zakah becomes obligatory on it. Likewise, if he prepares a house or land for sale, zakah becomes obligatory on it.
As for a house prepared for rental, or a car prepared for rental, there is no zakah on them. However, if the rental income reaches the nisab after a lunar year has passed, it is subject to zakah.

The presenter : May Allah reward you with good, and may He do you good.