Zakat is the obligatory charity that is one of the five pillars of Islam. For savings and similar wealth, it's generally 2.5% of qualifying wealth that has stayed above a minimum threshold, called the nisab, for a full lunar year. It must go to the eight categories of people named in the Quran.
Key Takeaways
- Zakat is one of the five pillars of Islam (Sahih al-Bukhari 8), and the Quran commands it alongside prayer (Al-Baqarah 2:43).
- It's due on qualifying wealth that stays at or above the nisab threshold for a full lunar year.
- For cash, savings, gold and silver, the rate is generally 2.5%.
- The nisab is based on the value of gold or silver, and scholars and organisations differ on which to use for cash.
- Zakat goes to the eight categories listed in Surah At-Tawbah 9:60, and assets like pensions or shares need specific scholarly advice.
What Zakat Is
Zakat means purification and growth. It's an obligatory act of worship, not a voluntary donation, and the Prophet listed it among the five principles Islam is built on (Sahih al-Bukhari 8). The Quran repeatedly joins it with prayer: "And establish prayer and give zakah and bow with those who bow [in worship and obedience]" (Al-Baqarah, 2:43, Sahih International).
Who Has to Pay Zakat?
- An adult, sane Muslim, according to the general view, though the schools differ on some details, such as wealth belonging to children.
- Whose qualifying wealth is at or above the nisab.
- And has held that wealth for one lunar year (hawl), meaning it stayed above the nisab over that period.
The Nisab Threshold
The nisab is the minimum amount of wealth before zakat becomes due. It's based on the value of gold or silver, commonly given as around 85 to 87.5 grams of gold, or around 595 to 612 grams of silver, depending on the conversion used. Because the silver threshold is much lower, many organisations recommend it for cash so that more people give, while others use gold. The money value changes with metal prices, so check today's figure from a reputable zakat organisation or scholar before you calculate.
How to Calculate Zakat, Step by Step
- Pick your zakat date, the date each lunar year when you calculate.
- Add up qualifying wealth: cash at home and in bank accounts, savings, gold and silver, and money owed to you that you expect to be repaid.
- Subtract debts currently due, such as bills or repayments owed now.
- Compare the total with today's nisab. If it's below, no zakat is due this year.
- If it's above, multiply the total by 2.5%. That is the zakat you pay.
A Simple Worked Example
| Item | Amount (hypothetical) |
|---|---|
| Cash and bank savings | £8,000 |
| Gold jewellery (current value) | £2,500 |
| Money owed to you | £500 |
| Minus debts due now | −£1,000 |
| Total qualifying wealth | £10,000 |
| Zakat at 2.5% | £250 |
These numbers are only an illustration of the arithmetic. Scholars differ on whether jewellery that is regularly worn is zakatable, and on how to treat pensions, shares, business stock, cryptocurrency and property, so ask a qualified scholar about anything beyond straightforward savings.
Who Receives Zakat?
The Quran names eight categories: "Zakah expenditures are only for the poor and for the needy and for those employed for it and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler, an obligation [imposed] by Allah" (At-Tawbah, 9:60, Sahih International). When giving through a charity, check that it distributes zakat within these categories and keeps it separate from general donations.
Zakat is one of the five pillars of Islam, alongside the six pillars of faith explained in our guide to the pillars of Iman. Surah Al-Baqarah contains much of the Quran's guidance on charity and fair dealing, introduced in our guide to Surah Al-Baqarah.
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