2.5%
The rate on zakatable wealth held above the nisab for one lunar year.
AQLC / Practice / Zakat centre
Zakat centre
What zakat is, who must pay it, who may receive it, how the nisab works, and how each category of wealth is treated.
One lunar year
The hawl — the completion of a full Hijri year of ownership above the nisab.
Eight categories
The recipients named in Qur'an 9:60, and no others.
The basics
Zakat is the third pillar of Islam: an annual obligation on wealth, not income. It is due at 2.5% of the wealth a Muslim owns above a minimum threshold (the nisab), once that wealth has been held for a full lunar year.
It is not charity in the voluntary sense. Zakat is a right that the poor hold over the wealth of the wealthy — the Qur'an places it in the same verse as prayer, and describes it as purifying both the wealth and the person who gives it.
Who must pay
- A Muslim adult of sound mind
- Owning wealth above the nisab, free of debt, for one lunar year
- On wealth that is productive or capable of growth — cash, gold, silver, trade goods, shares
The nisab
The nisab is measured in gold or silver. The gold threshold is 87.48 grams; the silver threshold is 612.36 grams. Because the silver threshold is much lower, most scholars recommend it, since it means more people qualify to pay and more of the poor benefit.
Wealth and its treatment
| Type of wealth | Treatment |
|---|---|
| Cash and bank balances | Fully zakatable at their value on your zakat date |
| Gold and silver | Zakatable by weight; the safer position is to include jewellery worn regularly |
| Business stock | Valued at current market price, not purchase cost |
| Shares held for trade | Valued at market; long-term holdings treated by many scholars on their zakatable assets |
| Property held for sale | Zakatable on market value |
| Property you live in | Not zakatable |
| Pension and retirement funds | Scholars differ; the accessible portion is generally included |
| Debts owed to you | Zakatable if likely to be repaid |
| Debts you owe | Deducted if due immediately |