What Is Zakat?
Zakat is the obligation to give a portion of excess wealth every year to the poor and needy, and it is the third of the five pillars of Islam that each Muslim is expected to fulfil in their lifetime.
Who Is Required to Pay Zakat?
To be eligible for Zakat, a person must be Muslim, adult, sane and free. They must also possess a certain minimum amount of what Shariah deems to be "extra wealth," known as nisab, for a complete lunar year.
What Is Nisab and How Is It Calculated?
Nisab is the minimum threshold of wealth that makes Zakat obligatory. Prophet Muhammad (SAW) established this rate as equal to 87.48 grams of gold or 612.36 grams of silver. Anyone who owns this amount, or its equivalent in money, cattle or other assets, becomes obligated to pay Zakat for that year.
This nisab amount must be fully owned by the person, and Zakat is only due on wealth held in excess of personal use: items such as clothing, food, shelter, furniture and cars are excluded, as these are treated as daily necessities. The nisab amount must also have been held for a complete lunar year before Zakat becomes due on it.
How Much Zakat Do I Need to Pay?
The amount payable is 2.5% of qualifying wealth, so the total will differ depending on how much a person owns.
How Do I Work Out What I Owe?
Because everyone's finances differ, the exact amount owed varies from person to person. Most Islamic charities offer online Zakat calculators that are simple to use and can show what is owed in a few minutes, alongside Zakat projects that can be researched and supported directly. Alternatively, a local Imam can help work out what is owed and advise on local projects that may benefit most from it.
Frequently Asked Questions
Who is required to pay Zakat?
Anyone who is Muslim, adult, sane and free, and who has held wealth at or above the nisab threshold for a full lunar year.
What is nisab?
Nisab is the minimum amount of wealth a person must hold before Zakat becomes due: equal to 87.48 grams of gold or 612.36 grams of silver, or their equivalent value.
What percentage of wealth is paid as Zakat?
2.5% of qualifying wealth held above the nisab threshold for a full lunar year.
Are everyday items like my home or car included in the Zakat calculation?
No. Items in daily personal use, such as clothing, food, shelter, furniture and cars, are excluded from the calculation.
