The evidence that zakah is obligatory on livestock is the hadith of Anas ibn Malik—may Allah be pleased with him—regarding the document written by Abu Bakr—may Allah be pleased with him—which states: “This is the prescribed obligation of charity which the Prophet—may Allah’s peace and blessings be upon him—has imposed upon the Muslims…” the hadith (1). It mentions sheep and camels; as for cattle, they are mentioned in another hadith (2).

Know that livestock may be kept under several categories:

The first category is when they are merchandise for trade. In that case, zakah is due on them as trade goods.

Thus, zakah may be due on a single sheep, a single camel, or a single cow, because what is considered with regard to trade goods is their value. Therefore, whatever reaches the nisab by its value is subject to zakah, whether the animals are free-grazing or fed fodder, leased out or ridden for personal benefit.

The second category is free-grazing livestock kept for milk production and breeding. These are animals that graze, as Allah, Exalted is He, says: “And from it are trees upon which you pasture your herds.” [al-Nahl 16:10] Their owner keeps them for their milk—that is, for their milk, fat, and offspring. It does not negate their being kept for this purpose if he sells any of their offspring beyond what he needs, for such offspring are like the fruit of date palms.

The third category is fodder-fed livestock kept for milk production and breeding. These are animals for which their owner purchases fodder, harvests it, or cuts it for them. No zakah is due on them at all, no matter how numerous they may be, because they are neither trade goods nor free-grazing livestock.