From the Rav’s Desk: When and how often should one separate Maaser from his income?

When and how often should one separate Maaser from his income?

Question:

Dear Rabbi, I try to give maaser from my income, but I’m unsure how often I need to calculate it. For example, if I have a particularly profitable month and then experience a loss the following month, should I calculate and give maaser immediately after each gain, or wait until the end of a set period? Should maaser be given every time I receive income, like after each paycheck or business transaction, or is it better to wait and calculate it at regular intervals (such as monthly, biannually, or annually)? Additionally, is there a specific deadline or cutoff date each year by which maaser must be calculated and distributed? For instance, should all calculations align with the Jewish New Year (Rosh Hashanah), or is another date more appropriate? I’m also wondering how to handle situations where I give tzedakah throughout the year—can those donations count toward my maaser obligation, and how should I keep track of them? Any guidance on the ideal timing and method for calculating and giving maaser would be very helpful.

Answer:

Maaser kesafim is ideally calculated twice a year, every six months, but at the very least once annually, with the cutoff date preferably being Rosh Hashanah. All income and losses from the past year are totaled, and maaser is given from the net gain.

Example:

Yanky keeps track of his finances from Rosh Hashanah to the next Rosh Hashanah. Over the year, he earned $60,000 from his job and an additional $5,000 from freelance work, totaling $65,000 in income. He also experienced a $3,000 loss from an investment and spent $2,000 on business expenses, making his total losses and expenses $5,000. His net gain for the year is $65,000 minus $5,000, which equals $60,000. Yanky calculates 10% of $60,000, so he gives $6,000 as maaser. If he already donated $2,000 to tzedakah during the year, he can subtract that amount from his maaser obligation and only needs to give $4,000 more to fulfill his annual maaser requirement.

Explanation:

While some Poskim are stringent and suggest that one should not use any of their income before separating maaser—comparing unseparated funds to “tevel” (untithed produce)—the practical halacha does not follow this view. The accepted custom is that you may use your income as usual, and there is no requirement to separate maaser before spending the money. Halachically, maaser from income is measured over the course of a full year, similar to the laws of maaser ani. While there is no explicit source specifying a formal cutoff date for the annual accounting, the suggested custom is to use Rosh Hashanah as the reset point for calculating maaser. [However, an individual may select a more convenient cut-off date if preferred, such as the tax season when he is anyways calculating his income.] This means that all income earned from one Rosh Hashanah to the next is considered a single financial cycle. Any losses incurred during that period are also included. After calculating the net profit, 10% of that amount is given as maaser. Throughout the year, you are encouraged to give tzedakah regularly; these donations can be recorded and deducted from your annual maaser obligation. If, after the annual calculation, you still owe maaser, you should pay the remaining amount. If you gave more than required, the excess can be carried over to the next year.

The above practice of separating annually meets the minimum legal standard, however, the ideal practice is to calculate and give maaser biannually, every six months. Additionally, some individuals choose to allocate maaser immediately upon receiving any income, which reflects the most altruistic standard.

Sources: Give right away: Leket Yosher Y.D. p. 76; Shelah Chulin  Os 62; Maharil 108; Separate twice or once a year; Kneses Hagedola 249:1; Chavos Yair 224; Beis Lechem Yehuda 249; Noda Beyehuda 194 and 199; Chikrei Lev Y.D. 3:202; Aruch Hashulchan 249:7; Ahavas Chesed 18:2; Shevet Halevi Y.D. 5:133 Y.D. 249:3; 9:201; Tzedaka Umishpat 5:9 footnote 39; Pesakim Uteshuvos 249:22 footnotes 191-194; Cut off date Rosh Hashanah: Chavos Yair 224; Beis Lechem Yehuda 249; Aruch Hashulchan 249:7; Shevet Halevi Y.D. 5:133 Y.D. 249:3; 9:201; Pesakim Uteshuvos 249:22