Zakat is one of the five pillars of Islam, a mandatory financial obligation on every Muslim whose wealth reaches the Nisab (minimum threshold) and one full lunar year has passed. In this comprehensive and updated 2026 guide, we explain in detail how to calculate all types of Zakat - from Zakat on money and gold to Zakat on stocks, business, and property - with practical examples, updated Nisab values, and common mistakes to avoid.
Allah says:
"Take from their wealth a charity by which you purify them and cause them increase, and invoke blessings upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing." (At-Tawbah: 103)
Calculate Your Zakat Accurately and Easily
Use our Online Zakat Calculator to automatically calculate your Zakat based on updated gold and silver prices with a breakdown by type.
What is Zakat and Its Rulings
Linguistically, Zakat means growth, increase, purification, and blessing. In Islamic law, it is a prescribed right from wealth that must be paid when the Nisab is reached and one full lunar year (Hawl) has passed. Zakat is the third pillar of Islam after the testimony of faith and prayer, and was made obligatory in the second year of Hijrah.
Conditions for Zakat to Be Obligatory
- Islam: Not obligatory on non-Muslims
- Freedom: Not obligatory on enslaved persons
- Full ownership: The wealth must be fully owned and settled
- Reaching Nisab: The wealth must reach the minimum threshold prescribed by Islamic law
- Completion of one year (Hawl): One full lunar year must pass on owning the Nisab (except for crops, fruits, and minerals)
- Growth potential: The wealth must be capable of growth and increase
- Excess beyond basic needs: The wealth must be above essential necessities
- Freedom from preventing debt: The wealth should be free from immediately due debts (according to some scholars)
Updated Zakat Nisab 2026
The Nisab is the minimum amount of wealth on which Zakat becomes obligatory. It varies by type of wealth:
| Type of Wealth | Nisab | Zakat Rate | Notes |
|---|---|---|---|
| Gold | 85 grams (24 karat) | 2.5% | Equivalent to 20 mithqals |
| Silver | 595 grams | 2.5% | Equivalent to 200 dirhams |
| Cash/Money | Equivalent to 85g gold | 2.5% | Changes with gold price |
| Stocks (Trading) | Equivalent to cash Nisab | 2.5% | On market value |
| Business goods | Equivalent to cash Nisab | 2.5% | On capital and profits |
| Crops/Fruits | 5 Wasq (~653 kg) | 5% or 10% | 5% irrigated, 10% rain-fed |
| Camels | 5 camels | Graduated | Per special schedule |
| Cattle | 30 cattle | Graduated | Per special schedule |
| Sheep/Goats | 40 sheep | Graduated | Per special schedule |
Zakat on Money (Cash and Deposits)
Zakat on money is the most common type among Muslims today. It includes cash at home, bank accounts, deposits, and savings of all kinds.
How to Calculate Zakat on Money
- Add up all your money: Cash at home + checking accounts + savings accounts + deposits
- Add amounts owed to you: Debts others owe you (that are expected to be repaid)
- Subtract debts due: Debts you owe that are due within the current year
- Verify Nisab: Check that the net amount equals or exceeds the Zakat Nisab
- Calculate 2.5%: Zakat = Net amount × 2.5% (or ÷ 40)
Practical Example: Zakat on Money
Suppose Muhammad has:
- Cash in bank: 80,000 SAR
- Savings account: 50,000 SAR
- Debts owed to him: 10,000 SAR
- Debts he owes: 15,000 SAR
Calculation:
Total wealth = 80,000 + 50,000 + 10,000 = 140,000 SAR
After deducting debts = 140,000 - 15,000 = 125,000 SAR
Nisab (85g gold × ~300 SAR) = ~25,500 SAR (amount exceeds Nisab)
Zakat = 125,000 × 2.5% = 3,125 SAR
Zakat on Gold and Silver
Zakat is due on gold and silver whether as bullion or jewelry. Scholars differ on Zakat for jewelry in personal use:
Zakat on Gold
- Nisab: 85 grams of 24-karat gold
- Rate: 2.5% of gold weight or value
- Personal jewelry: Scholars differ (safer to pay Zakat)
- Stored gold: Zakat is due by consensus
Zakat on Silver
- Nisab: 595 grams of pure silver
- Rate: 2.5% of silver weight or value
- Personal jewelry: Same scholarly difference as gold
- Silver utensils: Zakat is due (their use is originally prohibited)
Example: Zakat on Gold Calculation
Fatima owns 150 grams of 21-karat gold
Convert to 24-karat: 150 × (21/24) = 131.25 grams pure gold
Nisab: 85 grams (amount exceeds Nisab)
If gold price at 24-karat = 300 SAR/gram
Gold value = 131.25 × 300 = 39,375 SAR
Zakat = 39,375 × 2.5% = 984.37 SAR
For updated gold prices, use our Gold Price Calculator.
Zakat on Stocks and Investments
The method of calculating Zakat on stocks depends on the investor's intention:
Type 1: Trading Stocks (Frequent Buying and Selling)
If you actively trade stocks with the intention of profit:
- Zakat is on the full market value of stocks at the end of the year
- Zakat rate: 2.5% of market value
- Treated as trade goods
Example: Zakat on Trading Stocks
Ahmad owns 1,000 shares in Aramco at 35 SAR per share
Market value = 1,000 × 35 = 35,000 SAR
Zakat = 35,000 × 2.5% = 875 SAR
Type 2: Long-term Investment Stocks
If you are a long-term investor and do not intend to sell the stocks:
- Zakat is on distributed dividends only
- Zakat rate: 2.5% of dividends if they reach Nisab and one year passes
- Some scholars say Zakat is due on the share's portion of the company's zakatable net assets
Zakat on Business Goods (Trade)
Business goods include everything prepared for trade and profit (merchandise, inventory, properties for sale). Zakat is calculated as follows:
- Value goods and inventory at market price (selling price) at the end of the year
- Add available cash and expected receivables
- Subtract debts due by the trader
- Pay 2.5% of the net amount if it reaches Nisab
Example: Zakat on Business Goods
Khalid owns a shop:
- Merchandise value: 200,000 SAR
- Cash in register and bank: 30,000 SAR
- Customer receivables: 20,000 SAR
- Supplier payables: 50,000 SAR
Net = (200,000 + 30,000 + 20,000) - 50,000 = 200,000 SAR
Zakat = 200,000 × 2.5% = 5,000 SAR
Zakat on Real Estate
Real estate has special Zakat rulings depending on its purpose:
| Property Type | Zakat Ruling | How to Calculate |
|---|---|---|
| Personal residence | No Zakat due | - |
| Property for sale (trading) | Zakat is due | 2.5% of market value |
| Rental property | Zakat on rental income only | 2.5% of remaining rent if reaching Nisab |
| Land with no specific intent | Scholarly difference (safer to pay) | 2.5% of market value |
Zakat on Crops and Fruits
Zakat is due on grains and fruits if they reach the Nisab (5 Wasq = approximately 653 kilograms). The rate varies by irrigation method:
- Rain-fed or river-irrigated (no cost): 10% (one-tenth)
- Artificially irrigated (with cost): 5% (one-twentieth)
- Both methods combined: 7.5% (three-quarters of one-tenth)
Note: One full year (Hawl) is not required for Zakat on crops. It is due immediately at harvest time if the Nisab is reached.
Zakat al-Fitr - Rulings and Calculation
Zakat al-Fitr is obligatory on every Muslim - man or woman, adult or child, free or enslaved - if they have food surplus beyond their needs for Eid day and night. It is paid on behalf of every family member.
Amount of Zakat al-Fitr
- Prescribed amount: One Saa of the staple food of the country (approximately 3 kilograms)
- In Saudi Arabia: One Saa of rice = approximately 3 kilograms
- Cash equivalent (approx. 2026): 25 - 30 SAR per person
When to Pay Zakat al-Fitr
- Best time: After Fajr prayer on Eid day and before Eid prayer
- Can be paid early: From the beginning of Ramadan or one to two days before Eid
- Cannot be delayed: Beyond Eid prayer without a valid excuse
Example: Zakat al-Fitr for a Family
Family of father, mother, and 3 children (5 members)
Zakat per person = 25 SAR (approximate)
Total Zakat al-Fitr = 5 × 25 = 125 SAR
Who Receives Zakat (The Eight Categories)
Allah says:
"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 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." (At-Tawbah: 60)
Common Mistakes in Zakat Calculation
- Forgetting some assets: Not counting bank deposits, stocks, or other investments
- Incorrect Nisab calculation: Using outdated gold prices or wrong karat
- Not deducting due debts: Debts due within the current year should be subtracted
- Confusing Zakat with Sadaqah: Zakat is obligatory with specific recipients; Sadaqah is voluntary
- Delaying Zakat payment: Must be paid promptly when the year is complete without undue delay
- Giving Zakat to ineligible recipients: Such as parents, children, or spouse
- Not counting personal jewelry: The stronger opinion is that Zakat is due on it
- Counting the year by Gregorian calendar: The year should be calculated by the Hijri calendar (354 days)
Difference Between Zakat and Sadaqah
| Criterion | Zakat | Sadaqah (Charity) |
|---|---|---|
| Ruling | Obligatory (Fard) | Voluntary (Mustahabb) |
| Amount | Prescribed by law (2.5%) | No set amount |
| Recipients | 8 specific categories | Any charitable cause |
| Timing | When the year is complete | Any time |
| Nisab | Nisab required | No Nisab required |
| Neglecting it | Sinful and accountable | No sin |
To calculate and plan your charitable giving, use our Sadaqah Calculator.
Practical Steps to Pay Zakat
- Set your Hawl date: Record the Hijri date when your wealth first reached Nisab
- Inventory all your wealth: Collect all cash, gold, stocks, and commercial property
- Use the calculator: Use our Zakat Calculator for accurate computation
- Verify Nisab: Ensure your net wealth equals or exceeds the Nisab
- Calculate Zakat: Multiply net wealth by 2.5% (or divide by 40)
- Distribute Zakat: Pay it directly to eligible recipients or through trusted charities
- Make intention: Intend the payment as Zakat for Allah when distributing
Important Zakat Questions
Is Zakat due on end-of-service benefits?
End-of-service benefits are not subject to Zakat while still with the employer, as the money is not yet settled. However, after receiving the benefits, if they reach Nisab and a full year passes, Zakat becomes due.
Is Zakat due on monthly salary?
Salary itself is not subject to Zakat upon receipt. However, if you save from your salary an amount that reaches Nisab and a full year passes on it, Zakat becomes due. The easiest method is to choose one day per year to calculate all wealth and pay its Zakat.
Can Zakat only be paid in Ramadan?
Zakat is due when the year is complete regardless of the month. However, it is permissible to advance it and pay in Ramadan for the multiplied reward. The important thing is not to delay it beyond its due time.