What Is Khums? A Complete Guide to the 20% Obligation

Khums is a 20% tax on annual surplus income observed in Ja'fari (Shia) jurisprudence. It is split equally between Sahm al-Imam (given to your Marja' or their representative) and Sahm al-Sadat (given to needy descendants of the Prophet). It is one of the fundamental financial obligations for Shia Muslims alongside zakat.

How Khums Is Calculated

The core formula is straightforward: at the end of your personal khums year, total your income, subtract your allowable deductions, and pay 20% of the remaining surplus.

• Net Surplus = Total Income + Property Subject to Khums − Deductions
• Khums Due = Net Surplus × 20%
• Sahm al-Imam = Khums Due × 50%
• Sahm al-Sadat = Khums Due × 50%

If your deductions exceed your income and property, your net surplus is zero and no khums is due for that year.

Taxable Income Categories

The following income sources are subject to khums. Only amounts earned during the current khums year are counted:

Property Subject to Khums

In addition to income, certain property holdings are subject to khums:

• Gold and silver purchased — precious metals acquired during the khums year
• Jewelry beyond personal use — jewelry exceeding what is customarily worn
• Unused goods — purchased items that remain unused at the end of the khums year

Allowable Deductions

Three categories of deductions reduce your gross surplus before the 20% rate is applied:

• Annual living expenses — rent, food, clothing, transportation, healthcare, education, and other reasonable personal and family expenses
• Debt payments — amounts paid toward outstanding debts during the year
• Business reinvestment — capital reinvested into your business for continued operations

Advanced Categories

Certain wealth categories are taxed independently at the 20% rate, separate from the standard surplus calculation:

The 50/50 Sahm Split

Once the total khums obligation is calculated, it is divided equally into two portions:

• Sahm al-Imam (50%) — given to your Marja' (religious authority) or their authorized representative. This portion is used for Islamic institutions, seminaries, and community needs as directed by the Marja'.
• Sahm al-Sadat (50%) — given to needy descendants of the Prophet Muhammad (Sayyids/Sadah). Recipients must be in genuine financial need.

The Khums Year (Sana Khumsiyya)

Every person who pays khums has a personal khums year. This 12-month cycle begins on the date you first earned income from employment or business activity. Your khums year repeats annually from that date.

For example, if your first job started on September 1, your khums year runs from September 1 to August 31 each year. At the end of each cycle, you calculate your surplus and pay 20% of the net amount.

It is recommended to consult your Marja's office if you are uncertain about your khums year start date, especially if you have had multiple changes in employment or income sources.

Example Calculation

Suppose your khums year just ended and you have the following:

• New savings: $30,000
• Investment returns: $5,000
• Annual living expenses: $25,000
• Debt payments: $2,000

Calculation:

• Total Income: $30,000 + $5,000 = $35,000
• Total Deductions: $25,000 + $2,000 = $27,000
• Net Surplus: $35,000 − $27,000 = $8,000
• Khums Due: $8,000 × 20% = $1,600
• Sahm al-Imam: $1,600 × 50% = $800
• Sahm al-Sadat: $1,600 × 50% = $800

Rafiq is an educational calculation tool, not a religious authority or tax advisor. For complex khums situations, consult your Marja' or their authorized representative for rulings specific to your circumstances.