Short Answer

No, all haram wealth must be returned to its rightful owner or given in charity. Zakat would be paid on the remaining amount of halal wealth.

‍

Long Answer

No, zakat is not given on haram wealth. To understand why, one must delve into the principles of zakat and the nature of haram wealth in Islamic jurisprudence.
‍

Understanding Zakat and Ownership

‍
Zakat is an obligatory act of charity that applies to specific types of wealth that a Muslim owns. The fundamental condition for zakat to be due is that the individual must own the wealth and have full ownership and control over it.
‍

Nature of Haram Wealth

‍
Haram wealth refers to money or assets acquired through impermissible means, such as theft, fraud, bribery, gambling, or interest (riba). Islamically, such wealth is not considered lawful for a Muslim to own or benefit from.

‍
Handling Haram Wealth

‍
When a Muslim acquires haram wealth, they are required to rid themselves of it by either:
1. Returning it to the rightful owner: If the source of the haram wealth is identifiable and it belongs to someone else (e.g., stolen property), it must be returned to the rightful owner.
2. Giving it away in charity: If the rightful owner cannot be identified or the wealth was earned through general impermissible means (e.g., interest from a bank account), it should be given in charity without the intention of seeking a reward from Allah.

‍
Zakat on Haram Wealth

‍
Given the principle mentioned above, haram wealth does not qualify for zakat since a Muslim cannot rightfully own haram wealth. Thus, it does not meet the ownership condition required for zakat, which is due only to lawfully owned wealth. Furthermore, the purpose of zakat is to purify lawful wealth. However, haram wealth cannot be purified through zakat. Instead, the entire amount must be disposed of through charity to cleanse one's income and assets from the impermissible gain.
‍

Practical Application

‍
Let's take an example to illustrate the process:
1. Identify Haram Wealth:
   ◦ A Muslim has total assets of $10,000.
   ◦ Out of this, $1,000 was earned through interest (haram).
2. Dispose of Haram Wealth:
   ◦ The $1,000 in haram wealth must be given away in charity, without expecting any reward.
   ◦ After disposing of the haram wealth, the remaining lawful wealth is $9,000.
3. Calculate Zakat on Remaining Wealth:
   ◦ Zakat is calculated at 2.5% of the remaining lawful wealth.
   ◦ Zakat = $9,000 × 0.025 = $225.
‍

Summary

‍
To summarize, zakat is not given on haram wealth because it is not considered lawful for a Muslim to own. Haram wealth must either be returned to its rightful owner or given away in charity to cleanse one's assets. Zakat is then calculated on the remaining lawful wealth.

‍