What zakat is

Zakat means purification and growth. It is an act of worship and a duty, not only a kind gift. Allah mentions it together with prayer in many verses, for example Quran 2:43.

Prophet Muhammad ﷺ taught that Islam is built on five pillars, and zakat is one of them. Quran 51:19 describes the share of the needy as a right in the wealth of the believers, so it is not a favour.

Zakat cleans the wealth of the giver and the heart from greed. It also supports people in need.

Who must pay

Zakat is due on wealth that you own and can use. A lunar year is a little shorter than a solar year, so your zakat date comes about eleven days earlier each year in the solar calendar.

You must pay zakat if all three points are true.

  • You are a Muslim.
  • You own wealth above the nisab.
  • You have kept that wealth for one full lunar year.

The nisab is commonly given as the value of 85 grams of gold or 595 grams of silver. Scholars differ on which one to use. The silver value is lower, so more people must pay. The gold value is higher. Ask a trusted scholar or zakat authority which one they follow, and check the current price.

How much to pay

The rate is 2.5 percent, which is one fortieth, of your zakatable wealth on your zakat date. For example, if you hold 10,000 in savings on that date, the zakat is 250. Zakat is paid on these kinds of wealth:

  • Cash and savings
  • Gold and silver
  • Goods that you hold for trade

Farm produce and livestock have their own rules, so ask a scholar about them.

What is not zakatable

You do not pay zakat on the home that you live in. You also do not pay on items for personal use, such as clothes, furniture and a car that you use for your own needs.

Scholars differ about gold jewellery that is worn for personal use. A qualified local scholar can guide you.

Who may receive zakat

Quran 9:60 names eight groups that may receive zakat.

  • The poor
  • The needy
  • Those who collect and distribute zakat
  • Those whose hearts are being won over
  • Those who are freeing people from slavery or captivity
  • Those who are in debt
  • In the cause of Allah
  • The traveller who is stranded

Scholars generally say you should not give your zakat to your own parents or children, because you must support them already.

When to pay

Pay when your lunar year is complete. It helps to choose one fixed zakat date each year and to calculate on that day. Do not delay without a reason.

Many Muslims choose Ramadan as their date because rewards are greater in that month. This is fine if you plan it in advance.

Give zakat with a sincere intention, and do not make the receiver feel small. Allah knows what you give and why you give it.

General information for learning, not a fatwa. For your own situation, ask a qualified scholar.

Sources

  • Quran 2:43
  • Quran 9:60
  • Sahih al-Bukhari (Book of Zakat)
  • Sahih Muslim (Book of Zakat)