Zakat is the obligatory annual charity in Islam and one of its five pillars. A Muslim whose savings and other qualifying wealth stay above a minimum threshold, the nisab, for a full lunar year gives 2.5% of that wealth to specific groups of people in need named in the Quran (9:60).
The word zakat means both "purification" and "growth." Muslims see it not as a tax or a favor to the poor, but as their rightful share in wealth that ultimately belongs to God. This guide explains who must pay zakat, who can receive it, how to calculate it with a worked example, and how it differs from other forms of giving.
Key takeaways
- Zakat is one of the five pillars of Islam, listed in the hadith "Islam is based on (the following) five" in Sahih al-Bukhari 8.
- The Quran names eight groups who may receive zakat, starting with the poor and the needy (Quran 9:60).
- The standard rate on money, gold, silver and trade goods is one-fortieth, or 2.5%, as recorded in the letter of Abu Bakr in Sahih al-Bukhari 1454.
- Zakat is due only on wealth above the nisab held for one lunar year (hawl); the Prophet said there is no zakat on silver below five awaq (200 dirhams) (Sahih al-Bukhari 1447).
- Zakat al-fitr is a separate, small payment of food made by every household member at the end of Ramadan (Sahih al-Bukhari 1503).
What does zakat mean?
Zakat (zakah, زكاة) comes from an Arabic root meaning to purify and to grow. Both meanings appear in the Quran's instruction to the Prophet Muhammad (peace be upon him):
Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah 's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.
Paying zakat purifies the giver from greed and purifies the remaining wealth. Muslims also believe it brings blessing. The Prophet said, "Charity does not decrease wealth" (Sahih Muslim 2588).
The Quran pairs zakat with prayer many times, for example: "And establish prayer and give zakah and bow with those who bow" (Quran 2:43). Prayer is a duty to God, zakat a duty to God expressed through people. Our guide to the five pillars of Islam shows how it fits with the other acts of worship.
Why do Muslims practice zakat?
Muslims give zakat first because God commands it. The Quran also points to several purposes:
- Ownership belongs to God. People are trustees of wealth, not its ultimate owners. One of God's names is Ar-Razzaq, the Provider, and another is Al-Ghaniyy, the Self-Sufficient, who needs nothing from His creation.
- Redistribution. The Quran says wealth should not become "a perpetual distribution among the rich from among you" (Quran 59:7).
- Social security. When the Prophet sent Mu'adh ibn Jabal to Yemen, he told him to teach that zakat "is to be taken from the wealthy among them and given to the poor" (Sahih al-Bukhari 1395).
- Spiritual growth. Giving loosens attachment to money and builds gratitude.
Who must pay zakat?
Zakat is obligatory on a Muslim who:
- is an adult of sound mind (schools differ on whether zakat is due on the wealth of children, with the majority saying it is, paid by the guardian);
- owns qualifying wealth at or above the nisab;
- has held that wealth for one full lunar year, called the hawl (hawl).
What is nisab?
The nisab (nisab, نصاب) is the minimum amount of wealth that makes zakat due. The Prophet set it at 20 dinars of gold or 200 dirhams of silver. Scholars convert these to modern weights:
| Standard | Classical measure | Modern weight (common estimate) |
|---|---|---|
| Gold | 20 dinars (mithqal) | about 85 grams of gold |
| Silver | 200 dirhams | about 595 grams of silver |
Because gold and silver prices change daily, the nisab in dollars, pounds or any currency changes too. Zakat organizations publish current nisab values, and you should check one on the day your zakat is due.
Today the silver nisab is far lower than the gold nisab. Many scholars and zakat bodies recommend using the silver standard for cash because it brings more people into giving and benefits the poor. Others argue the gold standard better reflects real wealth today. Both views are held by qualified scholars.
Which wealth is zakatable?
Zakat on cash and similar assets applies to:
- cash at home and in bank accounts
- gold and silver (scholars differ on jewelry worn regularly: the Hanafi school says zakat is due on it, while the majority of Maliki, Shafi'i and Hanbali scholars say it is not)
- business inventory and trade goods
- shares and investments, according to their zakatable portion
- money owed to you that you expect to be repaid
Personal items such as your home, car, furniture and clothing are not zakatable. Crops, livestock and minerals have their own rules and rates; crops, for example, are taxed at 10% or 5% depending on irrigation.
Schools also differ on how much personal debt reduces zakatable wealth. Many contemporary scholars allow deducting debts that are due now, such as this month's installments, rather than the full balance of a long-term mortgage.
How to calculate zakat: a worked example
The example below uses illustrative figures only. The metal prices are assumptions chosen to show the math, not today's market prices.
Step 1: Set the nisab using current prices. Suppose gold is $130 per gram and silver is $1.60 per gram.
| Nisab standard | Calculation | Nisab (example) |
|---|---|---|
| Gold | 85 g × $130 | $11,050 |
| Silver | 595 g × $1.60 | $952 |
Step 2: Add up zakatable assets on your zakat date. Fatima, a hypothetical example, has held wealth above the nisab for a full lunar year.
| Asset | Example value |
|---|---|
| Cash in bank accounts | $8,000 |
| Cash at home | $500 |
| Shares (zakatable portion) | $4,000 |
| Gold jewelry, 20 g at $130 per gram | $2,600 |
| Money a friend owes her and will repay | $1,000 |
| Total assets | $16,100 |
Step 3: Subtract debts due now. Fatima owes $1,500 on a credit card this month.
$16,100 − $1,500 = $14,600 in net zakatable wealth.
Step 4: Compare with the nisab. $14,600 is above both the gold nisab ($11,050) and the silver nisab ($952), so zakat is due either way.
Step 5: Multiply by 2.5%. $14,600 × 0.025 = $365.
If Fatima follows the majority view that worn jewelry is exempt, she removes the $2,600 of gold: $12,000 × 0.025 = $300. If her net wealth had been, say, $5,000, it would be above the silver nisab but below the gold nisab, and the choice of standard would decide whether zakat is due.
Many Muslims choose a fixed date each year, such as a date in Ramadan, to work this out, because they want the extra reward of giving in that month. For anything more complex, such as business assets or pensions, a scholar or a reputable zakat calculator can help.
Who can receive zakat? The eight categories
The Quran lists exactly who may receive zakat:
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.
| Category | Arabic term | Who it covers today |
|---|---|---|
| The poor | al-fuqara' | People with little or no means |
| The needy | al-masakin | People whose income does not meet basic needs |
| Zakat workers | al-'amilina 'alayha | Those who collect and distribute zakat |
| Bringing hearts together | al-mu'allafati qulubuhum | New Muslims, or others whose goodwill is sought |
| Freeing captives | fi al-riqab | Historically slaves; today some apply it to freeing captives or victims of trafficking |
| Debtors | al-gharimin | People unable to repay legitimate debts |
| In the cause of God | fi sabil Allah | Interpreted differently; some limit it, others include wider good causes |
| The stranded traveler | ibn al-sabil | Travelers cut off from their resources |
Zakat cannot be given to one's own parents, grandparents, children or spouse, since a person is already responsible for supporting them.
Zakat vs sadaqah vs zakat al-fitr
Muslims use three words for charity, and they are easy to confuse.
| Feature | Zakat | Sadaqah | Zakat al-fitr |
|---|---|---|---|
| Obligatory? | Yes, for those who qualify | No, voluntary | Yes, for those who can afford it |
| Amount | 2.5% on cash and similar wealth | Any amount | One sa' of staple food per person |
| When | Once a lunar year | Any time | End of Ramadan, before the Eid prayer |
| Who receives it | The eight categories in 9:60 | Anyone in need, and good causes | Mainly the poor |
| Purpose | Purifies wealth | Earns reward, expiates sins | Purifies the fast, feeds the poor on Eid |
Sadaqah (sadaqah, صدقة) is any voluntary charity, including a smile or a kind word in the broad sense taught by the Prophet. The Quran compares spending for God's sake to a seed that grows seven ears, each with a hundred grains (Quran 2:261).
Zakat al-fitr is paid at the end of Ramadan. Ibn Umar reported that the Prophet made it due as "one Sa' of dates or one Sa' of barley" on every Muslim, "young or old," to be paid before the Eid prayer (Sahih al-Bukhari 1503). A sa' is roughly 2.5 to 3 kilograms. Ibn Abbas reported that it purifies the fasting person "from empty and obscene talk" and provides "food for the poor" (Sunan Abi Dawud 1609, graded hasan by al-Albani). The majority of scholars say it is paid in food, while the Hanafi school allows its cash value. Read more about the end of the fast in why Muslims fast during Ramadan.
The economic and social purpose of zakat
Zakat is a regular, predictable transfer from those with surplus wealth to those without. Because it is charged on savings rather than income, it discourages hoarding and encourages money to circulate and be invested.
In the early Muslim state, zakat was collected and distributed publicly. Today, a few Muslim-majority countries, including Saudi Arabia, Malaysia and Pakistan, have state systems for collecting it, while most Muslims pay through mosques, charities or directly to people in need.
The Quran also warns that the chance to give can pass. "And spend [in the way of Allah] from what We have provided you before death approaches one of you" (Quran 63:10).
Read the zakat verses on Quran Universe
Read Surah at-Tawbah 9:60 and 9:103 with Tafsir Ibn Kathir on Quran Universe to see how classical scholars explained each category of recipient. The great passage on righteousness in Quran 2:177 also shows how the Quran joins faith, generosity and prayer.
Frequently asked questions
What is zakat and why do Muslims practice it?
Zakat is a compulsory annual charity of 2.5% on savings and similar wealth above a minimum threshold. Muslims practice it because the Quran commands it alongside prayer and because it is one of the five pillars of Islam. It purifies wealth, supports the poor and reminds the giver that everything ultimately belongs to God.
How do you calculate zakat?
Add up your cash, gold, silver, investments, business stock and money owed to you on your zakat date. Subtract debts due now. If the total is above the nisab and you have held at least that much for a lunar year, multiply it by 2.5%. For example, $10,000 of net zakatable wealth gives $250 of zakat.
What is nisab?
Nisab is the minimum wealth that makes zakat obligatory. It equals 20 dinars of gold, about 85 grams, or 200 dirhams of silver, about 595 grams. Because metal prices change daily, its value in currency changes too. Many scholars recommend the lower silver standard for cash, while others use the gold standard.
What is the difference between zakat and sadaqah?
Zakat is obligatory, set at a fixed rate, paid once a lunar year, and may only go to the eight groups listed in Quran 9:60. Sadaqah is voluntary charity of any amount, at any time, to anyone in need or any good cause. Both are rewarded, but neglecting zakat is a serious sin.
What is zakat al-fitr?
Zakat al-fitr is a small obligatory charity paid at the end of Ramadan, before the Eid prayer, for every member of a household. According to Sahih al-Bukhari 1503, it is one sa', roughly 2.5 to 3 kilograms, of a staple food such as dates or barley. Its purpose is to purify the fast and feed the poor on Eid.
Who cannot receive zakat?
Zakat cannot be given to people who are wealthy, to one's own parents, grandparents, children or spouse, or to anyone outside the eight categories in Quran 9:60. Most scholars also hold that zakat should not be used for general projects like building mosques, though some include broader causes under "the cause of God."