If you are a sane Muslim adult and possess a certain amount of wealth for a full calendar year (Nisab), you know that paying Zakat is required on you. When you pay Zakat, you are fulfilling God’s commandment on you. Your accepted Zakat not only purifies your wealth but also cleanses your soul from sin and greed.
Nisab is the minimum amount the Prophet, on him be peace, set as the fixed thresholds at which a Muslim must pay Zakat on eligible kinds of wealth. Nisab is cash equivalent of 3 ounces of gold or 21 ounces of silver.
Because Zakat is paid annually, it is due an entire lunar year from the day you exceeded the Nisab threshold. But do you know how much Zakat you need to pay?
Make a List of Your Zakatable Wealth
Six conditions of Muslim’s wealth determine if he or she must pay Zakat from it:
Absolute Ownership
Growth
Minimum Quantity
Abundance Above Need
Solvency (Freedom from debt)
Lapse of a Lunar Year (or Time of Harvest)
Some examples of wealth you need to pay Zakat on are stocks, savings, investment properties, cash, and business income. You can add all of these items on this easy Zakat Calculator.
Calculate Your Zakat Liabilities
You need to subtract any debts or loans you owe from your Zakat-eligible wealth. This will give you the wealth (Zakat net worth) that you should calculate your Zakat with.
Calculate Your Zakat
Zakat is calculated on 2.5% of your Zakat net worth. The easiest way to calculate how much Zakat you owe is with a Zakat calculator.
Don’t Forget to Pay Zakat-al-Fitr
Zakat al-Fitr has no minimum wealth threshold. Each member of the household is to pay it. It is given to the needy to bring joy on the day of the Eid al-Fitr celebration. You should pay this before the Eid Prayer. Its value equivalency is usually established in the month of Ramadan, which is acceptable to most. Still, it was traditionally a sa‘, four double-handfuls of food, as in dates, barley, raisins, or dried yogurt — amounts that would fulfill an average household with it.
