Zakat questions: how to work it out
Zakat is one of the five pillars of Islam. The basics are simple; the details depend on what you own. Hadi helps you understand the rules step by step.
۞إِنَّمَا ٱلصَّدَقَٰتُ لِلۡفُقَرَآءِ وَٱلۡمَسَٰكِينِ وَٱلۡعَٰمِلِينَ عَلَيۡهَا وَٱلۡمُؤَلَّفَةِ قُلُوبُهُمۡ وَفِي ٱلرِّقَابِ وَٱلۡغَٰرِمِينَ وَفِي سَبِيلِ ٱللَّهِ وَٱبۡنِ ٱلسَّبِيلِۖ فَرِيضَةٗ مِّنَ ٱللَّهِۗ وَٱللَّهُ عَلِيمٌ حَكِيمٞ ﴿٦٠﴾
Innama alssadaqatu lilfuqarai waalmasakeeni waalʿamileena ʿalayha waalmuallafati quloobuhum wafee alrriqabi waalgharimeena wafee sabeeli Allahi waibni alssabeeli fareedatan mina Allahi waAllahu ʿaleemun hakeemun
Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah. And Allah is Knowing and Wise
Quran 9:60 · Surah At-Tauba
The basics
- Nisab: you pay zakat only if your zakatable wealth reaches the nisab, the value of 85 grams of gold or 595 grams of silver.
- One lunar year: the wealth must stay above the nisab for a full Hijri year.
- 2.5%: zakat on money, gold, silver and trade goods is one fortieth of the total.
- Who receives it: the eight categories named in the verse above, such as the poor and the needy.
Example questions
- Do I pay zakat on my savings account?
- What about gold jewellery I wear?
- How is zakat on shares and ETFs calculated?
- Can I give zakat to my relatives?
- What is zakat al-fitr and how much is it?
An example
Question: I have 6,000 euros in savings all year. Do I pay zakat?
Hadi: Scholars differ on whether cash is measured against the gold or the silver nisab. The silver nisab is far lower, so by it 6,000 euros is well above the threshold; by the gold nisab it depends on the current gold price. If your savings are above the nisab you follow and stayed there for a lunar year, you pay 2.5%, which is 150 euros.
For complex cases such as businesses, pensions and debts, Hadi explains the main scholarly views and recommends confirming with a scholar or a zakat organisation.
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