Common questions about Zakat, answered by our Sharia compliance team.
Every Muslim who possesses wealth equal to or greater than the Nisab threshold (the minimum amount) for one full lunar year (Hawl) must pay Zakat. This applies to free, sane, adult Muslims.
Nisab is the minimum amount of wealth a Muslim must have before Zakat becomes obligatory. It is equivalent to 85 grams of gold or 595 grams of silver. Most contemporary scholars use the gold or silver standard, whichever is lower, to ensure maximum benefit to the poor.
The standard Zakat rate is 2.5% (1/40) of total zakatable wealth that has been held for one lunar year above the Nisab threshold.
Zakat is due on gold and silver (including jewelry in most scholarly opinions), cash and bank balances, business inventory and trade goods, investment assets, and agricultural produce. Personal items like a home, car, or clothing are not subject to Zakat.
The Quran specifies eight categories: the poor (fuqara), the needy (masakin), Zakat administrators, those whose hearts are to be reconciled, those in bondage, those in debt, those in the path of Allah, and the wayfarer (travelers in need).
You cannot pay Zakat to your spouse, parents, grandparents, children, or grandchildren who are your dependents. However, you can give Zakat to other relatives (siblings, cousins, etc.) who are eligible recipients — and doing so earns a double reward (sadaqah + maintaining family ties).
Scholars differ on this. The most common position is to deduct the amount of debt equivalent to one year's repayments from your Zakat calculation, not the full mortgage balance. Our Zakat Calculator follows this methodology.
Yes, it is permissible to pay Zakat before the Hawl (lunar year) is completed, as long as you have already reached the Nisab. This is especially recommended in Ramadan for the increased reward.
Zakat al-Mal is the annual wealth purification (2.5%). Zakat al-Fitr is a mandatory charity paid before Eid al-Fitr to enable the poor to celebrate. It is a fixed amount per person (approximately a meal's worth of staple food, or its cash equivalent).
Have a specific question? Contact our scholars at scholars@ummahhelp.com.