Is Zakat Tax Deductible in the USA? A Simple Guide for Muslim Donors
Zakat is more than a religious duty it’s a powerful act of faith. For Muslims, giving Zakat is a way to purify wealth, uplift the poor, and fulfill the third pillar of Islam. But if you live in the United States, you might be asking yourself a practical question: Can I claim Zakat as a tax-deductible donation?
The good news is: Yes, you can! As long as your Zakat is given through a qualified 501(c)(3) nonprofit like Muslim Hands USA. In this guide, we’ll walk you through exactly how it works, and how to make your giving go further both spiritually and financially.
Can You Claim Zakat on Your U.S. Taxes?
Yes. Zakat is tax-deductible under U.S. law, just like any other charitable donation as long as it’s made to a registered 501(c)(3) nonprofit.
That means if you give your Zakat through an approved U.S.-based charity, you may be able to claim that donation as a deduction on your federal income tax return. Zakat, Sadaqah, and even Fidyah can all qualify provided they meet IRS guidelines.
It’s a question many Muslim donors ask: “Will my giving still count in both worlds?” And the answer is yes. In fact, the Prophet ﷺ reminded us to give generously. And here in the U.S., the tax system allows that generosity to benefit you as well.
What Makes Zakat Tax-Deductible?
The IRS outlines a few key requirements for any donation to be tax-deductible and Zakat is no different.
To qualify:
- Your Zakat must be given to a recognized 501(c)(3) nonprofit
- It must be a voluntary donation, not a payment in exchange for goods or services
- You’ll need to keep a receipt or acknowledgment of the donation
- You must itemize your deductions when filing taxes (rather than taking the standard deduction)
If those conditions are met, your Zakat may be deductible. It would be like any other charitable contribution, whether it’s given once a year, or throughout the year in monthly amounts.
Is Muslim Hands USA a Tax-Deductible Charity?
Absolutely. Muslim Hands USA is a registered 501(c)(3) nonprofit, and we’ve been trusted by donors since 1993. Every donation you make through our platform, whether it’s Zakat, Sadaqah, Fidyah, Kaffarah, or general giving, it is tax-deductible under U.S. law.
We issue formal receipts for all donations.
Your giving is:
- IRS-eligible
- Sharia-compliant
- Impactful across 20+ countries
- Tracked and receipted with transparency
📌 EIN: (No. 27-4155655).
How to Keep Track of Your Zakat for Tax Purposes
Keeping records of your giving is easier than you think. After each donation, you’ll receive an email receipt from Muslim Hands USA with the full amount and campaign details. At the end of the year, you’ll be able to print or share statements with your accountant.
Here are a few tips:
- Always save your donation confirmation emails
- Make note of whether your giving is Zakat, Sadaqah, or general charity
- Create a folder in your inbox or downloads for tax documents
- If you’re unsure, ask your tax preparer if you should itemize
Pro tip: Monthly donors often find this process simpler. Not only is their giving consistent, but their records are too.
Why Giving Zakat Through Muslim Hands USA Matters
Giving through Muslim Hands USA means your Zakat is both faithful to Islamic principles and eligible under U.S. tax law. It also means your generosity reaches those who need it most.
Your Zakat may support:
- Orphan Sponsorship in Pakistan, Yemen, and Niger
- Water Wells in Mali and Gambia
- Emergency food Parcels in Gaza and Yemen
- Where Most needed our trusted experts allocate your donations to families in most need.
👉 Explore all Zakat-eligible campaigns
Your intention is pure. We help make sure your impact is powerful, and your documentation is reliable.
Frequently Asked Questions
Can I claim Zakat I gave overseas?
Only if the donation was processed through a U.S.-based 501(c)(3) nonprofit. If you sent money directly to someone overseas or donated through a non-registered platform it’s not eligible for a tax deduction under U.S. law.
What if I gave Zakat in cash and don’t have a receipt?
Unfortunately, without documentation, the IRS doesn’t allow you to claim the deduction. We recommend always giving through a trusted platform that provides receipts — like Muslim Hands USA.
Is Zakat al-Fitr tax-deductible?
Yes Zakat al-Fitr can also be deductible if it’s given to a qualified charity and not given directly to an individual without tracking.
