Zakat is one of the Five Pillars of Islam — an obligatory act of worship for every eligible Muslim. It is a fixed annual charity on qualifying wealth, intended to purify what we own and support those in need. This guide explains what Zakat is, who must pay it, how to calculate it, and where it can be given.
What Is Zakat?
Zakat (الزكاة) means “to purify” and “to grow.” It is the obligatory giving of a set portion of your wealth each year to those who are eligible to receive it. Unlike voluntary charity (Sadaqah), Zakat is a duty for any Muslim whose wealth exceeds a minimum threshold known as the nisab and who has held that wealth for one lunar year.
Who Has to Pay Zakat?
Zakat is due on every adult Muslim of sound mind who owns wealth above the nisab threshold for a full lunar (Hijri) year. If your net qualifying wealth stays above the nisab for that period, Zakat becomes obligatory.
What Is the Nisab?
The nisab is the minimum amount of wealth a Muslim must hold before Zakat is due. It is set at the value of either:
- 87.48 grams of gold, or
- 612.36 grams of silver
Because gold and silver prices change daily, the cash value of the nisab varies. Many scholars recommend using the silver standard, as it sets a lower threshold and means more people qualify to give Zakat to those in need. Check the current gold and silver price on the day you calculate.
How Much Zakat Do You Pay?
The rate of Zakat is 2.5% of your total qualifying wealth held for one lunar year. In simple terms:
Zakat due = Total qualifying wealth × 0.025
For example, if your zakatable wealth is £10,000 and it is above the nisab, your Zakat would be £250.
What Wealth Is Zakatable?
- Cash (in hand, bank accounts, and savings)
- Gold and silver
- Money owed to you that you expect to be repaid
- Shares, investments, and pensions (rulings vary — seek guidance)
- Business stock and trade goods
Your everyday personal belongings — your home, car, clothing, and personal items — are generally not subject to Zakat. You can deduct immediate debts and essential living costs before calculating.
Who Can Receive Your Zakat?
The Qur’an (Surah At-Tawbah, 9:60) names eight categories of people eligible to receive Zakat, including the poor, the needy, those in debt, and travellers in difficulty. This is why giving Zakat through a trusted charity matters — it ensures your Zakat reaches those who genuinely qualify.
Pay Your Zakat Through Hayat Charity
Hayat Charity is a UK-registered Islamic humanitarian charity (Reg. No. 1212073) based in Manchester. We distribute your Zakat to eligible recipients across multiple countries in full accordance with Islamic principles. Your Zakat is also Gift Aid claimable where applicable.
This guide is for general information. Rulings on Zakat can vary between scholars and schools of thought, particularly on pensions, shares, and business assets. If you are unsure, consult a qualified scholar.
