Since lying isn’t allowed when joking, is it permissible to use sarcasm or exaggeration to make someone laugh?
what is exaggerate?, it is defined as ;
to magnify beyond the limits of truth; overstate; represent disproportionately.
thus exaggeration is a form of lying. another description would be that exaggeration is also a type of deception, as well as a means of maligning.
(for instance magnifying small injuries or discomforts as an excuse to avoid responsibilities)
so even as a joke or in any form of speech it is better to avoid exaggeration. in islam exaggeration is not acceptable. exaggeration does not lead to good in anything. the evidences scholars present are the following ahadith.
Umar ibn al-Khattab reported: The Messenger of Allah, peace and blessings be upon him, said, “Do not exaggerate my praises as the Christians have done with the son of Mary. Verily, I am only a servant, so refer to me as the servant of Allah and his messenger.” [bukhari]
Al-Miqdad reported: The Messenger of Allah, peace and blessings be upon him, said, “When you see those who flatter others, throw sand in their faces.” [muslim]
its best to stick to the truth always even when you have to make someone laugh. why displease our creator to please someone?. be with truth and nothing but the truth always, for it is the best way.
a brother (i assume) has answered that very well. here is the link to that question, please refer to the accepted answer as it covers the topic about sarcasm.
may Allah the mighty and sublime grant us mercy and guide us to the straight path.
ALLAH KNOWS BEST