Zakat is one of the five pillars of Islam, a mandatory financial obligation that purifies wealth and blesses it. In this comprehensive 2026 guide, we explain step by step how to accurately calculate Zakat on your bank savings, gold, and investments.
What is Zakat on Wealth?
Zakat on wealth (Zakat al-Mal) is a specific percentage of money that must be paid when it reaches the nisab threshold and a full Hijri year (lunar year) has passed. The prescribed rate is 2.5% (one-fortieth) of total Zakatable wealth. Zakat is one of the most important financial acts of worship in Islam, contributing to purifying wealth and achieving social solidarity among Muslims.
Zakat Nisab for 2026
The nisab is the minimum amount of wealth on which Zakat becomes obligatory. It is calculated using one of two methods:
- Gold Nisab: 85 grams of 24-karat gold - the most commonly used standard
- Silver Nisab: 595 grams of pure silver
Using the gold nisab is recommended as it more closely reflects contemporary currency values. To find the nisab in Saudi Riyals, multiply 85 grams by the current price per gram of 24-karat gold.
How to Calculate Zakat on Bank Savings
To calculate Zakat on your bank savings, follow these steps:
- Determine your balance: Add up all your bank account balances (current, savings, deposits)
- Confirm nisab is reached: Compare your total savings to the current nisab value
- Verify the year has passed: A full Hijri year must have elapsed since reaching the nisab
- Calculate Zakat: Multiply the total amount by 2.5% (or divide by 40)
Calculating Zakat on Gold
Gold that is saved (not used for personal adornment according to some scholars) is subject to Zakat if it reaches 85 grams. Calculation method:
- Determine the weight of gold you own in grams
- Find the current gold price per gram in SAR
- Multiply weight by price to get total value
- Calculate 2.5% of the total value
Zakat on Stocks and Investments
The method for calculating Zakat on stocks differs based on the investor's intention:
Trading Stocks (Short-term)
If you buy and sell stocks for short-term profit, Zakat is calculated on their market value on the Zakat due date at 2.5%.
Long-term Investment Stocks
If you purchased stocks to hold and benefit from dividends, Zakat is only due on distributed dividends if they reach the nisab and a year has passed.
Investment Funds
Investment funds are treated like stocks based on whether the intention is investment or trading. You can review fund reports to identify Zakatable assets.
Zakat on Current and Salary Accounts
Money in current or salary accounts is treated like cash savings. If money remains in your account, reaches the nisab, and a full year passes, Zakat is due. It is typically calculated on either the lowest balance during the year or the balance on the Zakat payment date, depending on the school of jurisprudence followed.
Debts and Their Effect on Zakat
Scholars differ on deducting debts from Zakatable wealth:
- First opinion: Currently due debts are deducted from total wealth before calculating Zakat
- Second opinion: Debts are not deducted and Zakat is paid on the full amount
It is recommended to consult a religious scholar or the Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia.
Important Tips for Paying Zakat
- Set a fixed annual date for calculating Zakat (many prefer Ramadan)
- Keep records of all your Zakatable money and assets
- Use an online Zakat calculator for accurate results
- Pay Zakat to the eligible recipients mentioned in the Quran (At-Tawbah: 60)
- Do not delay paying Zakat after its due date