The short answer: zakat is the third pillar of Islam. A Muslim who owns savings and other zakatable wealth above the nisab for one lunar year pays 2.5% of it to people in need. The nisab is the value of 85 grams of gold or 595 grams of silver.
This page explains the general rules. Zakat on business assets, pensions, shares and debts can be detailed, so check your own situation with a scholar or a trusted zakat calculator. This is not financial advice.
Who must pay zakat?
- A Muslim who is sane and, in the view of most scholars, an adult.
- Who owns wealth at or above the nisab,
- And has owned it for one full lunar year (*hawl*), about 354 days.
On a child's own savings, the schools differ: the majority say zakat is due and the guardian pays it, while the Hanafi school says it is not due until the child is an adult.
The nisab: gold or silver?
| Standard | Weight | Note |
|---|---|---|
| Gold | 85 g (some use 87.48 g) | Higher threshold, so fewer people pass it |
| Silver | 595 g (some use 612.36 g) | Lower threshold, so more people pay and more reaches the poor |
Gold and silver prices change daily, so check the current nisab on the day your zakat is due. Many UK and US charities publish it. Scholars differ on which standard to use for cash; many recommend the silver nisab as it benefits the poor more.
What counts as zakatable wealth?
| Usually counted | Usually not counted |
|---|---|
| Cash at home and in bank accounts | The home you live in |
| Gold and silver (schools differ on jewellery worn regularly) | Your car and household furniture |
| Business stock and trading goods | Personal clothes and items |
| Shares and investments (rules depend on the type) | Tools you use for work |
| Money owed to you that you expect to be repaid |
Debts due now, such as this month's bills, are usually deducted first.
How to calculate 2.5%: an example
On her zakat date, Amina has £4,000 in savings, £1,000 in cash and gold worth £2,000 that counts as zakatable, and owes £500 in bills due now. Her zakatable wealth is £4,000 + £1,000 + £2,000 − £500 = £6,500. If that is above the nisab, her zakat is 2.5% of £6,500 = £162.50. (Divide by 40 for a quick check: £6,500 ÷ 40 = £162.50.)
Who can receive zakat?
The Quran names eight groups in Surah At-Tawbah (9:60):
- The poor (*fuqara'*)
- The needy (*masakin*)
- Those who collect and administer zakat
- Those whose hearts are to be brought closer to Islam
- Freeing those in bondage
- People in debt who cannot pay it
- In the cause of Allah (*fi sabilillah*)
- The stranded traveller (*ibn as-sabil*)
Zakat cannot be given to your own parents, grandparents, children, grandchildren or spouse, because you are already responsible for them.
Zakat, Zakat al-Fitr and sadaqah: the difference
| Zakat | Zakat al-Fitr | Sadaqah | |
|---|---|---|---|
| Obligatory? | Yes, if you meet the conditions | Yes, for every Muslim who can afford it | No, voluntary |
| Amount | 2.5% of zakatable wealth | One sa' of food (or its value) per person | Any amount |
| When | Once a lunar year after the hawl | Before the Eid al-Fitr prayer | Any time |
Many people choose to pay zakat in Ramadan for the extra reward, but it is due on your own zakat date. For Zakat al-Fitr, see Eid prayer and Zakat al-Fitr.
Teaching children about zakat
Children don't usually pay zakat themselves, but they can understand it early: 1 in every 40 coins belongs to the poor. A sadaqah jar, or letting them help count and give the family's zakat, makes it real. See the 5 pillars of Islam for kids.
Our Islamic Studies classes teach the pillars of Islam, including zakat, in a child-friendly way. You can book 3 free trial classes.