Zakat Rulings and Evidence

Zakat in the Quran

Zakat is one of the five pillars of Islam. In the Quran it is named again and again together with prayer. For example, in Surah Al-Baqarah 2:43 believers are told to establish prayer and give zakat.

The Quran also explains its purpose. In Surah At-Tawbah 9:103 the Prophet ﷺ is told to take charity from people's wealth to purify them and help them grow in goodness. And Surah At-Tawbah 9:34-35 gives a strong warning to those who hoard gold and silver and do not spend it in the way of Allah.

Who must pay zakat

Zakat is due from a Muslim who:

• owns zakatable wealth (cash, savings, gold, silver, business stock, investments) at or above nisab,
• owns it fully, meaning it is theirs to use,
• and has held that wealth for one full lunar (Islamic) year.

Most scholars also say the person must be adult and of sound mind. On the wealth of children, the views differ: the Hanafi school says zakat is not due on it, while the Maliki, Shafi'i and Hanbali schools say the guardian pays it from the child's wealth.

Nisab: the minimum amount

Zakat is only due once your wealth reaches a minimum called nisab. The evidence comes from hadith:

• In Sunan Abi Dawud 1573, Ali (may Allah be pleased with him) reports that the Prophet ﷺ said that on 200 dirhams of silver held for a year, five dirhams are due, and that nothing is due on gold until it reaches 20 dinars, on which half a dinar is due.
• In Sahih al-Bukhari 1405, Abu Sa'id al-Khudri reports that no zakat is due on silver less than five awaq (which equals 200 dirhams).

Scholars have converted these old measures into grams in two common ways:

Zakat Compass uses 87.48 g and 612.36 g. The difference between the two conventions is small. You can see today's nisab in your currency.

The 2.5% rate

The same hadith gives the rate: five dirhams out of 200, and half a dinar out of 20. Both are one-fortieth, or 2.5%. This is why zakat on cash, savings, gold, silver and trade goods is 2.5% of their value.

The one-year rule (hawl)

The hadith in Sunan Abi Dawud 1573 also says zakat is due once a year has passed over the wealth. The year is counted in Islamic (lunar) months, which is about 354 days. Most people pick one fixed date, for example a day in Ramadan, and check their wealth on that date each year.

Where scholars differ

On some questions the major schools of Islamic law reach different answers. Zakat Compass shows the options and uses the more cautious one by default.

• Gold or silver nisab for cash: silver nisab is much lower, so more people pay and more reaches the poor. Many scholars recommend it for cash and mixed wealth; others use gold.
• Jewellery you wear: the Hanafi school says zakat is due on gold and silver jewellery even if it is worn. The Maliki, Shafi'i and Hanbali schools say jewellery kept for normal personal use has no zakat.
• Money received during the year: the Hanafi school adds it to your existing wealth and pays on your usual zakat date. Others give each new amount its own year.
• Debts: debts that are due now are generally deducted. Long-term loans, such as a mortgage, are treated differently by different scholars; many deduct only the payments due in the coming year.
• Shares: shares bought to trade are usually counted at full market value. For shares held long term, some scholars count full value and others only your part of the company's zakatable assets.

The eight groups who can receive zakat

Surah At-Tawbah 9:60 names the eight groups zakat may be given to:

1. The poor (al-fuqara)
2. The needy (al-masakin)
3. Those employed to collect and distribute zakat
4. Those whose hearts are to be brought closer to Islam
5. Freeing those in bondage
6. Those in debt they cannot pay
7. In the cause of Allah
8. The stranded traveller

Who cannot receive your zakat

Scholars generally agree you cannot give your zakat to your own parents and grandparents, your own children and grandchildren, or to people who are wealthy. Most scholars say a husband cannot give his zakat to his wife; on a wife giving to a poor husband, views differ. If you are unsure, ask a scholar you trust.

Work out my zakat

See also: 8 worked zakat examples