FAQ #158 : Does A Child Need To Pay Zakat?

Does a Child Need to Pay Zakāt?

According to the majority of jurists — including the Shāfiʿī school — zakāt is obligatory on the wealth of a minor when the legal conditions are fulfilled.

Although a child has not reached puberty and is therefore not legally accountable (mukallaf) for personal devotional acts such as prayer and fasting, zakāt is regarded as a financial right attached to wealth (ḥaqq al-māl).

The obligation therefore applies to the child’s wealth itself and must be discharged by the child’s legal guardian (walī).

Imām al-Nawawī states in al-Majmūʿ:
فالزكاة عندنا واجبة في مال الصبي والمجنون بلا خلاف، ويجب على الولي إخراجها من مالهما كما يخرج من مالهما غرامة المتلفات ونفقة الأقارب، وذلك من الحقوق المتوجهة إليهما، فإن لم يخرج الولي الزكاة وجب على الصبي والمجنون بعد البلوغ والإفاقة إخراج زكاة ما مضى باتفاق الأصحاب

Translation:
According to our school, zakāt is obligatory on the wealth of a minor and an insane person without any disagreement.

The guardian is required to pay it from their wealth, just as he pays from their wealth compensation for damages and the maintenance of relatives, for these are among the financial obligations that pertain to them.

If the guardian does not pay the zakāt, then the minor and the insane person must pay the zakāt for the past years after reaching puberty and regaining sanity, by agreement of the Shāfiʿī jurists.

This ruling is also supported by the early practice of the Companions. Imām Mālik relates in al-Muwaṭṭaʾ that ʿUmar ibn al-Khaṭṭāb said:

اتَّجِرُوا فِي أَمْوَالِ الْيَتَامَى لَا تَأْكُلُهَا الزَّكَاةُ

“Invest the wealth of orphans so that zakāt does not consume it.”

Many scholars understood this to mean that zakāt is expected to be paid from the wealth of minors, and therefore guardians were encouraged to invest their assets so that the wealth would not gradually diminish.

The Ḥanafī school differs in that it does not obligate zakāt on the monetary wealth of a minor because they consider legal accountability (taklīf) to be a condition for obligation.

How to Pay Zakāt on a Child’s Wealth

If you are managing a child’s wealth, zakāt becomes obligatory when the total zakatable wealth reaches the niṣāb and a lunar year (ḥawl) passes. For monetary zakāt, the niṣāb is the value of approximately 86 grams of gold, which is the commonly used reference in Singapore.

The niṣāb must be present at the beginning and end of the zakāt year. If the wealth drops below the niṣāb during the year, the zakāt year restarts when the niṣāb is reached again.

The guardian should then calculate 2.5 percent of the child’s qualifying wealth and pay it from the child’s assets.
Zakatable wealth includes cash savings, bank balances, gold and similar assets owned by the child.

If the child owns a business or shares in a trading business, the zakatable value of the business must also be included in the calculation. This normally includes business cash, trade inventory, and receivables expected to be collected.

Buildings, machinery, furniture and equipment used for operations are not included unless they are intended for sale.

Practical Rule

In practice, if a child’s wealth remains above the niṣāb for one lunar year, the guardian must calculate 2.5 percent of the zakatable amount and pay it from the child’s assets. If zakāt is not paid, the obligation remains and must be settled later.

According to the majority — including the Shāfiʿī school followed locally — zakāt on a child’s wealth is therefore obligatory when the conditions are fulfilled, and the guardian is responsible for ensuring that it is properly calculated and paid.

In summary, according to the majority — including the Shāfiʿī school followed locally — zakāt is obligatory on a minor’s wealth when the conditions are met. This includes cash, savings, gold, and also business assets in the case of zakāt al-tijārah. The guardian must calculate zakāt on the child’s net qualifying wealth annually and discharge it from the child’s assets.

The Ḥanafī school does not obligate zakāt on monetary wealth of a minor due to the absence of taklīf, as they classify zakāt as a devotional obligation. However, they obligate zakat on agricultural produce even if owned by a minor, because they treat it as a right attached to the land rather than purely a personal devotional duty.