What Is Zakat in Islam?
Zakat is the third pillar of Islam — an obligatory annual payment of 2.5% on wealth that exceeds the nisab threshold and has been held for one full lunar year (hawl). The word itself means “purification,” and paying zakat purifies your remaining wealth.
It is due on gold, silver, cash savings, investments, business inventory, and other qualifying assets — after subtracting outstanding debts. Zakat supports eight categories of recipients defined in the Quran (Surah At-Tawbah, 9:60), including the poor, the needy, and those in debt.
Zakat on Gold — Per Tola and Per Gram
Gold is one of the most common assets on which zakat is calculated. The nisab for gold is 87.48 grams (7.5 tola). If you own gold equal to or above this weight, zakat of 2.5% is due on the total market value of all your gold.
In the Hanafi school, zakat is due on all gold — including jewelry that is regularly worn. In the Shafi’i, Maliki, and Hanbali schools, gold jewelry in regular personal use may be exempt. Consult a qualified scholar for your specific situation.
To calculate zakat on gold: find the current market price per gram or per tola, multiply by the weight of gold you own, and take 2.5% of the total value.
For example, if gold is priced at 70 per gram and you own 100 grams, your zakat is 100 × 70 × 0.025 = 175 in your currency.
| Gold (Tola) | Gold (Grams) | Zakat Rate |
|---|---|---|
| 7.5 tola — Nisab threshold | 87.48g | 2.5% of market value |
| 8 tola | 93.3g | 2.5% of market value |
| 10 tola | 116.6g | 2.5% of market value |
| 12 tola | 139.9g | 2.5% of market value |
| 15 tola | 174.9g | 2.5% of market value |
| 20 tola | 233.2g | 2.5% of market value |
| 25 tola | 291.5g | 2.5% of market value |
| 30 tola | 349.8g | 2.5% of market value |
| 40 tola | 466.4g | 2.5% of market value |
| 50 tola | 583.0g | 2.5% of market value |
The nisab for silver is 612.36 grams (52.5 tola). Most scholars recommend using the silver nisab as it is lower, making zakat obligatory on more people.
Frequently Asked Questions
How do you calculate zakat?
Add up all your zakatable assets — gold, silver, cash, savings, investments, and business inventory. Subtract any debts you owe. If the remaining amount meets or exceeds the nisab (87.48g of gold or 612.36g of silver in value), pay 2.5% of the total as zakat.
What is the nisab for zakat?
The nisab is the minimum wealth threshold that makes zakat obligatory. It equals the value of 87.48 grams of gold (7.5 tola) or 612.36 grams of silver (52.5 tola). Most scholars recommend using the silver nisab as it is lower and includes more people in the obligation.
Is zakat due on gold jewelry?
In the Hanafi school, zakat is due on all gold including jewelry worn regularly. The Shafi’i, Maliki, and Hanbali schools generally exempt gold jewelry that is in regular personal use. Consult a qualified scholar for your situation.
Do you pay zakat on property?
Zakat is not due on your primary residence or personal-use property. However, if you own property as an investment or for resale, its market value is included in your zakatable assets. Rental income that is saved also counts toward your total wealth.
Is zakat due on stocks and shares?
Yes. If you hold stocks or shares as investments, their current market value is included in your zakatable assets. Some scholars calculate it based only on the zakatable assets of the underlying company rather than the full share price.
Do you pay zakat on salary?
Zakat is not due on salary as you earn it. However, any portion of your salary that you save and hold for one lunar year — and that brings your total wealth above the nisab — is subject to zakat at 2.5%.
When should zakat be paid?
Zakat becomes due once your wealth has exceeded the nisab for one full lunar year (hawl). Many Muslims pay during Ramadan for increased reward, but it can be paid at any time once the conditions are met. Delaying payment after it becomes due is not permitted.
What is the difference between zakat and zakat al-fitr?
Zakat is an annual 2.5% payment on accumulated wealth above the nisab. Zakat al-Fitr (also called Fitrana) is a fixed, smaller amount paid per person before the Eid al-Fitr prayer at the end of Ramadan. They are separate obligations with different rules.
Is zakat due on 401(k) or retirement accounts?
Scholars differ on this. Some say zakat is due on the accessible portion of retirement funds, while others say it is due only upon withdrawal. If your 401(k) is accessible with a penalty, many scholars recommend paying zakat on its current value. Consult a knowledgeable scholar.
Can zakat be paid in installments?
Yes. You may pay zakat in advance or in installments throughout the year, as long as the total amount due is paid by the time your hawl (lunar year) completes. Paying early is permissible and can help spread the financial commitment.
Related: Zakat al-Fitr (Fitrana)
Besides annual zakat on wealth, Muslims are also required to pay Zakat al-Fitr (Fitrana) before the Eid al-Fitr prayer at the end of Ramadan. It is a separate obligation with different rules.