How to Calculate and Pay Zakat

Zakat (Arabic: الزكاة) is the third pillar of Islam — an obligatory annual payment, due from every Muslim whose wealth exceeds a minimum threshold (nisab) held for a full lunar year (hawl). The word itself means both "purification" and "growth": Zakat purifies wealth and the heart from greed, and grows blessing in what remains.

Allah pairs it with prayer throughout the Quran: "And establish prayer and give Zakat." (Quran 2:43). And: "Take from their wealth a charity by which you purify them and cause them increase." (Quran 9:103)

Who Pays, and on What

Zakat is due on specific categories of wealth that have the potential to grow: cash and savings, gold and silver, trade goods and business inventory, shares held for trading, agricultural produce, and livestock (each with its own rules). Everyday personal items — your home, car, clothing, and tools of your trade — are not subject to Zakat.

The Two Keys: Nisab and Hawl

Nisab — the minimum threshold: the value of 85 grams of gold or 595 grams of silver. Most contemporary scholars use the silver standard for cash, as its lower value means more poor people benefit.

Hawl — the wealth must have been held above the nisab for one full lunar year (about 354 days). Picking a fixed annual Zakat date (many choose Ramadan) makes this simple to track.

The rate on monetary wealth is 2.5% (one fortieth) of the net total.

Common Mistakes to Avoid

Forgetting to include all assets — money owed to you that you expect to recover, and trade stock, are zakatable.

Deducting long-term debt — most scholars allow deducting only debts/bills currently due, not the full balance of a long-term mortgage.

Delaying payment — once due, Zakat should be paid promptly; unjustified delay is sinful.

Giving to ineligible recipients — Zakat cannot be given to one's own parents, children, or spouse, nor used to build mosques; it must reach the eight Quranic categories.

Frequently Asked Questions

Who can receive my Zakat?

The eight categories named in Quran 9:60: the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, freeing captives, those in debt, in the cause of Allah, and the stranded traveller.

Is Zakat due on the gold jewellery I wear?

The schools differ. The Hanafi view is that all gold and silver above nisab is zakatable, including worn jewellery; others exempt jewellery in regular use. Follow reliable scholarship and err toward caution.

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