Zakat is due from an adult Muslim who owns wealth above a minimum threshold (the nisab) for one full lunar year, and the standard rate on savings, gold, silver and trade goods is 2.5%. It must go to one of the eight groups named in the Quran, starting with the poor and the needy. Those three points are the core of the fiqh of zakat basics, and if you want to study them properly with a teacher, our course helps you learn Islam online one lesson at a time.
This guide walks you through each condition in plain language, shows a worked example, and points out where the schools of fiqh differ so you know when to ask a scholar about your own situation.
Key takeaways
- Zakat is the third pillar of Islam and is obligatory, unlike voluntary sadaqah.
- It is due when your zakatable wealth stays above the nisab for a full lunar year (hawl).
- The rate is 2.5% on cash, gold, silver and business stock; crops and livestock have their own rates.
- Zakat goes only to the eight categories in Surah At-Tawbah (9:60), not to your parents, children or spouse.
What Zakat Is and Why It Matters
The word zakat comes from a root that means both purification and growth. Allah tells the Prophet ﷺ to take charity from the believers’ wealth “to cleanse them and purify them” (Surah At-Tawbah, 9:103). Giving it purifies your heart from greed and purifies the wealth you keep.
Zakat is one of the five pillars on which Islam is built, as the well-known hadith in Sahih al-Bukhari and Sahih Muslim states. If you are new to the pillars as a whole, our article on the five pillars of Islam shows where zakat fits alongside the shahadah, salah, fasting and Hajj.
Unlike voluntary sadaqah, zakat has fixed conditions, rates and recipients, which is why getting the details right matters.
Who Has to Pay Zakat?
Zakat becomes obligatory when these conditions come together:
- You are a Muslim.
- You own the wealth fully, not money you hold for someone else.
- Your wealth reaches the nisab. Below the threshold, no zakat is due.
- A lunar year has passed (hawl). The wealth must stay at or above the nisab for one Islamic (hijri) year, about 354 days.
- The wealth is zakatable: cash, gold, silver, trade goods, crops and grazing livestock. Your home, car and personal belongings are exempt, while property bought to resell counts as trade goods.
What about children? The majority of scholars (Maliki, Shafi’i and Hanbali) say zakat is due on their wealth and the guardian pays it on their behalf. The Hanafi school says it is not due on a child’s wealth, so ask a scholar if you manage savings for a child.
The Nisab: How Much Wealth Before Zakat Is Due?
The nisab was set in the time of the Prophet ﷺ in terms of gold and silver. Converted to modern weights, the commonly used figures are:
| Wealth type | Nisab | Zakat rate |
|---|---|---|
| Gold | about 85 grams (20 mithqal) | 2.5% |
| Silver | about 595 grams (200 dirhams) | 2.5% |
| Cash, bank savings, trade goods | the value of the gold or silver nisab | 2.5% |
| Crops watered by rain or rivers | about 653 kg of harvest (5 wasq) | 10% |
| Crops watered by irrigation with cost or effort | about 653 kg of harvest (5 wasq) | 5% |
Some scholars give slightly different gram figures (such as 87.48 grams of gold) because they convert the old units differently, which is why two calculators can disagree.
Gold or silver for cash?
Because silver is far cheaper than gold, the silver nisab is a much lower amount of money. Many scholars recommend it for cash because it benefits the poor, while others use the gold standard. Either way, check metal prices on the day your zakat is due.
The 10% and 5% rates for crops come from an authentic hadith in Sahih al-Bukhari: a tenth on land watered by rain or springs, and half of that on land watered by wells. Crop zakat is paid at harvest, with no lunar year condition. Livestock has its own detailed tables, best studied with a teacher.
How Much Do You Pay? A Worked Example
The everyday case for most families is cash and savings. Here is how the calculation works:
- Pick your zakat date. This is the hijri date your wealth first reached the nisab, and you keep it every year.
- Add up your zakatable assets on that date: cash at home, bank balances, gold and silver, the market value of shares held for trading, and the value of business stock.
- Subtract debts that are due now, such as a bill or loan installment you must pay immediately. Scholars differ on how much long-term debt can be deducted, so ask about large mortgages or loans.
- Compare the total to the nisab. If it is below, no zakat is due this year.
- Pay 2.5% of the total, which is the same as dividing by 40.
For example, if Aisha has 9,000 USD in savings, 1,500 USD in a current account and 500 USD she owes on a bill due this week, her zakatable total is 10,000 USD. If that is above the nisab and has stayed above it for a lunar year, her zakat is 250 USD.
What about jewelry a woman wears? The Hanafi school says zakat is due on gold and silver jewelry even if it is worn. The majority (Maliki, Shafi’i and Hanbali) exempt permissible jewelry kept for personal use. Gold kept as savings or investment is zakatable according to all of them.
Studying a topic like this with a teacher usually takes a few focused lessons. If you are planning that time, the calculator below shows the monthly cost and live study hours for each weekly plan.
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Who Can Receive Zakat? The Eight Categories
Allah names the recipients of zakat precisely in Surah At-Tawbah, ayah 60. In simple terms, they are:
- The poor (al-fuqara): people who have little or nothing to meet their needs.
- The needy (al-masakin): people who have some income but not enough for their basic needs.
- Zakat workers: those appointed to collect and distribute it.
- Those whose hearts are to be reconciled: for example new Muslims who need support.
- Freeing captives: historically, freeing slaves; today scholars apply it to ransoming captives in some cases.
- Those in debt: people who cannot repay debts taken for lawful needs.
- In the cause of Allah (fi sabilillah): scholars differ on how widely this is applied.
- The stranded traveler (ibn as-sabil): a traveler cut off from their money, even if wealthy at home.
You do not have to split your zakat across all eight. Most people give to the poor and the needy, which are the first two categories and the most common use of zakat.
Who should not receive your zakat
- Your parents, grandparents, children and grandchildren. You are already responsible for supporting them, so you help them from your other wealth.
- Your wife. A husband’s spending on his wife is already his duty. Whether a wife may give her zakat to a poor husband is a point of difference: many scholars allow it, while Abu Hanifa did not.
- The wealthy and the able-bodied who can earn. Zakat is for genuine need.
- The family of the Prophet ﷺ (Banu Hashim), according to the mainstream view.
Needy brothers, sisters, aunts, uncles and cousins can receive your zakat, with the added reward of keeping family ties.
Common Zakat Mistakes
- Using the solar year without adjusting. The hawl is a lunar year. If you track by the Gregorian calendar, many scholars suggest a rate of about 2.577% to make up the difference.
- Forgetting gold kept in a drawer. Gold held as savings is zakatable even if it is never touched.
- Confusing zakat with zakat al-fitr. Zakat al-fitr is a small, separate payment of food due from every Muslim before the Eid prayer at the end of Ramadan. Our guide to the fiqh of fasting covers the Ramadan rulings around it.
Fiqh questions like these become much clearer when you can ask follow-ups and work through your own numbers. That is exactly what a one-to-one Islamic studies course is built for, and it pairs naturally with learning the difference between fiqh and aqeedah so you know which questions belong where.
Frequently Asked Questions
What is the minimum amount for zakat to be due?
Zakat is due when your zakatable wealth reaches the nisab, which is about 85 grams of gold or 595 grams of silver, or the cash value of either. Many scholars recommend the silver value for cash because it is lower and benefits more poor people. Check current metal prices on your zakat date.
Do I pay zakat on my monthly salary?
No, not on each paycheck. What matters is the total you have saved on your zakat date; money already spent during the year is not counted.
Can I give zakat to a non-Muslim?
The majority of scholars say zakat is given to Muslims, except under the category of those whose hearts are to be reconciled. You can and should help non-Muslims in need from your voluntary sadaqah, which has no such restriction.
Can I pay zakat in advance or in installments?
Many scholars, including the Hanafi, Shafi’i and Hanbali schools, allow paying zakat early once you own the nisab, and some people spread it over the year as monthly giving. Keep a record so the full amount is covered by your due date.
Where can I learn the fiqh of zakat in detail?
Study the detailed rulings on business assets, shares and debts with a qualified teacher. Our online Islamic studies classes cover worship-related fiqh step by step, and you can ask your teacher which school’s view applies to your situation.
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