[SAMPLE] Zakāh on money saved for a house

Yes. Zakāh is due on wealth that reaches the niṣāb and is held for a lunar year, and an intention to spend it later does not exempt it.

The reasoning is that zakāh attaches to wealth in one’s possession and control, not to wealth one considers available. Money earmarked for a future purchase is still owned, still accessible, and still growing one’s holdings. Were a future intention sufficient to exempt wealth, the obligation would rarely apply to anyone.

So the calculation is straightforward: on your zakāh date, include the savings in your total, and pay 2.5% on the whole if it meets the niṣāb.

A practical note — because the amount grows each year, some find it easier to set the zakāh aside monthly rather than face the full sum at once.