The Divine Obligation of Zakat
Zakat is the third pillar of Islam—a mandatory financial obligation on Muslims whose qualifying wealth exceeds a specified minimum threshold (Nisab) for one complete lunar year (Hawl). It purifies wealth and redistributes surplus to the vulnerable (Surah At-Tawbah 9:103).
Understanding the Nisab Thresholds
Nisab is the minimum qualifying wealth baseline established by the Prophet ﷺ:
- Gold Nisab: 20 Mithqals = approximately 87.48 grams (or 7.5 tolas).
- Silver Nisab: 200 Dirhams = approximately 612.36 grams (or 52.5 tolas).
Most contemporary jurists recommend calculating cash and bank savings using the silver standard so that more charity benefits the poor.
Assets Subject to Zakat (2.5% Rate)
- Cash & Bank Accounts: All checking, savings, and liquid funds.
- Gold & Silver: Jewelry, coins, and bullion.
- Trade Merchandise (Urud at-Tijarah): Wholesale or retail inventory meant for resale.
- Stocks & Investments: Shares in businesses (calculated on net liquid assets).
- Loans Receivable: Money lent out that is reliably expected to be repaid.
The 8 Eligible Recipient Categories (Surah At-Tawbah 9:60)
- Al-Fuqara: The extreme poor who possess nothing.
- Al-Masakeen: The destitute who cannot meet basic life necessities.
- Al-'Amilina 'Alayha: Appointed administrators of Zakat.
- Al-Mu'allafati Quloobuhum: Those whose hearts are being softened toward Islam.
- Fir-Riqab: Freeing captives or enslaved persons.
- Al-Gharimeen: Debtors overwhelmed by unavoidable debts.
- Fee Sabeelillah: Striving in the cause of Allah.
- Ibn as-Sabeel: Stranded wayfarers in need of traveling assistance.
Calculate your Zakat easily with our interactive Zakat Calculator.