The obligation
وَأَقِيمُوا۟ ٱلصَّلَوٰةَ وَءَاتُوا۟ ٱلزَّكَوٰةَ
Establish prayer and give zakat.
Zakat is due when
- The owner is a free Muslim (Hanafis also require sanity and adulthood; the other schools require zakat on the wealth of children, paid by the guardian)
- The wealth is fully owned and under the owner's control
- It reaches the nisab after deducting debts that are due
- A full lunar year (hawl) has passed on it while at or above nisab
- It is wealth that grows or can grow: money, gold, silver, trade goods, livestock, crops
Nisab: the minimum threshold
| Standard | Weight | Basis |
|---|---|---|
| Gold | 87.48 g (20 mithqal) | Some calculate 85 g |
| Silver | 612.36 g (200 dirhams) | Some calculate 595 g |
| Money & trade goods | Value of gold or silver nisab | Many contemporary scholars prefer silver as it benefits the poor more |
Choose a fixed Hijri date — many choose 1 Ramadan. Each year on that date, if your zakatable wealth is at or above nisab, pay 2.5% of the total. The Hanafi school looks only at the start and end of the year; the others require that wealth stay at nisab throughout.
Zakatable assets
| Asset | Zakatable? | Rate |
|---|---|---|
| Cash, bank balances, mobile wallets | Yes | 2.5% |
| Gold and silver (coins, bars) | Yes | 2.5% |
| Gold and silver jewellery worn by women | Hanafi: yes. Shafi'i, Maliki, Hanbali: no, if for normal permissible use | 2.5% |
| Shares bought to trade | Yes, on market value | 2.5% |
| Long-term shares | On the zakatable portion of the company's assets | 2.5% |
| Business stock and trade goods | Yes, on sale value | 2.5% |
| Money owed to you that you expect back | Yes | 2.5% |
| Home, car, furniture, personal clothing | No | — |
| Rental property | No on the property; yes on saved rental income | 2.5% |
| Crops | Yes at harvest | 10% if rain-fed, 5% if irrigated |
| Livestock (camels, cattle, sheep) grazing freely | Yes, by detailed tables | Varies |
Debts and liabilities
Debts owed to people are deducted from zakatable wealth before checking nisab.
In the relied-upon view, debts do not prevent zakat; many contemporary scholars allow deducting what is due now.
Debts are deducted from money (gold, silver, cash) but not from crops or livestock.
Debts are deducted from all zakatable wealth.
For mortgages and long instalment plans, many contemporary scholars deduct only the payments due in the coming twelve months.
The eight recipients
إِنَّمَا ٱلصَّدَقَٰتُ لِلْفُقَرَآءِ وَٱلْمَسَٰكِينِ وَٱلْعَٰمِلِينَ عَلَيْهَا وَٱلْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِى ٱلرِّقَابِ وَٱلْغَٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبْنِ ٱلسَّبِيلِ
Zakat is only for 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.
Al-Fuqara'
الفُقَرَاء
The poor who have little or nothing.
Al-Masakin
المَسَاكِين
The needy whose income does not cover their needs.
Al-'Amilin
العَامِلِين
Those appointed to collect and distribute zakat.
Al-Mu'allafah
المُؤَلَّفَة قُلُوبُهُم
Those whose hearts are to be won or strengthened in faith.
Fi ar-Riqab
فِي الرِّقَاب
Freeing those in bondage.
Al-Gharimin
الغَارِمِين
Those overwhelmed by lawful debts.
Fi Sabilillah
فِي سَبِيلِ الله
In the cause of Allah.
Ibn as-Sabil
ابْن السَّبِيل
The stranded traveller.
Your parents and grandparents, your children and grandchildren, your spouse (most schools), the wealthy, and the family of the Prophet ﷺ (Banu Hashim).
Questions
Frequently asked questions
Can I pay zakat in instalments during the year?
Yes, you may pay in advance during the year and settle the balance on your zakat date.
Is zakat due on my pension?
If you can access the funds, many scholars treat them as zakatable. Locked funds become zakatable once received.
Can zakat be given to non-Muslims?
The majority restrict zakat to Muslims, except the category of those whose hearts are to be reconciled. General charity (sadaqah) may be given to anyone.
What is the difference between zakat and sadaqah?
Zakat is an obligatory, fixed share with set recipients. Sadaqah is any voluntary charity, in any amount and at any time.