There are various types of taxes and revenues by which the State may fund its operations. In all cases of taxation, these can only be levied from those who can afford to pay. Thus, there is no taxation of the poor, which is seen in the Western nations in the form of, for example VAT or council tax. The sources of revenue for the state include :

1) Taxation

There are three main regular taxes that the State levies from its citizens (excluding the zakat, which is a part of the ibadah).

1. Jizyah - Is a tax on mature male non-Muslim citizens who are able to pay it. This is much less than any tax on Muslim citizens.
2. Ushr - Is a tax levied on unconquered land under the jurisdiction of the State, at the rate of one tenth of the produce if the land is irrigated by rain, or one twentieth if it is artificially irrigated.
3. Kharaj - Is a tax levied on conquered land, whose rate is fixed by the Khaleefah.

Non-Muslims do not pay any tax except the Jizyah. The Muslims pay taxes on condition that they are levied upon that which is surplus to the individuals conventional needs.

As well as these regular taxes, the State has the right to collect additional tax from the Muslims when the funds of the Bait al-Mal are inadequate to cover the expenditure required to undertake all the functions which the Shari‘ah has obliged the Muslims to perform, such as provision of food, shelter and clothing to all the citizens, or to meet the needs of emergencies like floods, or earthquakes. The State is not allowed to impose a tax upon the people for a function which the Shari‘ah has not obliged the Muslims to undertake. Thus, the State is not allowed to collect fees for the courts or departments or administrations, or for accomplishing any interests such as building new dams or other facilities when they are not essential.

2. Other Sources

There are a variety of other sources of revenue for the state. These include the Following :

1. Fa‘i - Property captured from the enemy without fighting.
2. Ghanima - Booty captured from the enemy after fighting.
3. Khumus - The fifth part of the booty.
4. Revenue from Public Property, such as natural resources.
5. Thoghoor - Customs levied at the States borders.
6. Revenue from State Property like land, buildings etc.
7. Rikaz - A fifth of hidden treasures and small minerals. h. The wealth of people dying without heirs.