Zakat FAQ
Answers to the most commonly asked questions about zakat. For in-depth coverage of specific asset types, see our dedicated guides on stocks and investments, retirement accounts, and gold, silver, and jewelry.
The Basics
What is zakat?
Zakat is one of the five pillars of Islam — an obligatory annual payment on qualifying wealth, calculated at 2.5% of net zakatable assets. It is not a tax or a donation; it is a right that the poor and eligible recipients have over the wealth of those who possess enough. The Quran pairs zakat with prayer more than 80 times, reflecting its fundamental importance in Islamic practice.
Who has to pay zakat?
Every Muslim whose net zakatable wealth meets or exceeds the nisab threshold at the end of a full lunar year (hawl) is obligated to pay zakat. There is no minimum age requirement in most scholarly views — if a child owns wealth above the nisab (for example, through inheritance), many scholars hold that zakat is due on that wealth, with the guardian responsible for paying it.
What is the nisab threshold?
The nisab is the minimum wealth level above which zakat becomes obligatory. It can be calculated using either the gold standard (85 grams of pure gold) or the silver standard (595 grams of pure silver), valued at current market prices. Because silver is worth far less than gold today, the silver nisab produces a much lower threshold. Most scholars recommend the silver standard because it is more inclusive — more people meet it and more zakat flows to those who need it. The Zakatable calculator shows both values using live prices and defaults to the silver standard.
When is zakat due?
Zakat becomes obligatory once a full lunar year (hawl) has passed since your wealth first reached the nisab threshold. Many Muslims choose to calculate and pay during Ramadan for the increased spiritual reward, but zakat can be calculated on any consistent annual date. The key requirement is that your wealth meets or exceeds the nisab at the end of your zakat year.
Is zakat 2.5% of all my wealth?
No. Zakat is 2.5% of your net zakatable assets — not everything you own. Certain assets are exempt, including your primary home, personal vehicle, household furniture, clothing, and tools of your trade. You calculate zakat on qualifying assets such as cash, gold, silver, investments, and business goods, then subtract eligible liabilities. The 2.5% rate applies to the remaining net amount.
Common "Do I Pay Zakat On..." Questions
Do I pay zakat on my savings account?
Yes. Cash in savings accounts, checking accounts, money market accounts, and any other bank accounts is fully zakatable. There is no scholarly disagreement on this — liquid cash is the most straightforward category of zakatable wealth.
Do I pay zakat on my house?
Your primary residence — the home you live in — is exempt from zakat regardless of its value. This is a matter of scholarly consensus. However, investment or rental properties beyond your primary home are treated differently. For rental properties, zakat is calculated on the net rental income you have accumulated and saved — meaning the rental income remaining after covering property-related expenses such as mortgage payments, property taxes, insurance, and maintenance. The zakatable amount is what you've actually kept from that income, not the gross rent collected. The property's market value itself is not zakatable. Properties purchased with the intention to resell (flipping) are treated as business inventory and zakatable at their full current market value.
Do I pay zakat on my car?
No. A personal vehicle you use for daily transportation is exempt from zakat, just like your home, furniture, and clothing. If you own vehicles as inventory for a business (such as a car dealership), those are zakatable as trade goods. A car purchased as an investment to resell would also be zakatable at market value.
Do I pay zakat on money I've lent to someone?
Yes, in most scholarly views. Money owed to you by others is considered part of your wealth because it is a receivable — you have a right to that money. If you expect the debt to be repaid, most scholars say you should include it in your zakat calculation. If the debt is doubtful or unlikely to be recovered, some scholars allow you to defer zakat on that amount until it is actually received, at which point you would pay zakat for the current year (and some scholars say for the years it was owed as well).
Do I pay zakat on my mortgage or other debts?
Debts reduce your zakatable wealth — they are deducted, not added. How much you can deduct depends on the scholarly position you follow. The more lenient approach (common in the Hanafi school) allows deducting up to 12 months of loan payments from your zakatable assets. The stricter approach limits the deduction to only the amount currently due (one month's payment). The Zakatable calculator offers both options. Note that in the Shafi'i school, debts are generally not deducted from zakatable wealth at all.
Do I pay zakat on gold jewelry I wear every day?
This depends on your school of thought and is one of the most well-known scholarly differences in zakat fiqh. The Hanafi school holds that all gold and silver is zakatable regardless of whether it is worn as personal jewelry. The Shafi'i, Maliki, and Hanbali schools generally exempt personal-use jewelry that is worn regularly. See our full guide on gold, silver, and jewelry for details.
Do I pay zakat on stocks and investments?
Yes, but how you calculate it depends on how you hold them. Stocks held for trading are zakatable at full market value. Long-term investment holdings can be calculated using either the zakatable portion method (approximately 30% of market value as a default estimate) or the full market value method. See our full guide on stocks and investments.
Do I pay zakat on my 401(k) or retirement account?
This is actively debated among contemporary scholars. The FCNA holds that retirement accounts are zakatable annually. Joe Bradford holds that zakat can be deferred until funds are accessible without penalty. The Zakatable calculator supports three methods for retirement accounts. See our full guide on retirement accounts.
Do I pay zakat on cryptocurrency?
Yes. Bitcoin, Ethereum, stablecoins, and other digital assets are treated as zakatable at their full current market value, at the standard 2.5% rate. See our full guide on stocks and investments for details.
Do I pay zakat on diamonds, platinum, or other precious gems?
Only if held for investment or trade. Precious metals other than gold and silver, and all gemstones (diamonds, rubies, emeralds, pearls), are not subject to zakat when used personally. All four schools of thought agree on this. See our guide on gold, silver, and jewelry.
Do I pay zakat on my business?
Business assets held for trade — inventory, goods for sale, accounts receivable — are zakatable at their current market value. Fixed business assets used in operations — equipment, vehicles, office space, tools — are not zakatable. Certain forthcoming business liabilities may also be deductible. If you own a business, you would calculate zakat on the trade-related portion of your business assets minus eligible business liabilities. The Zakatable calculator provides detailed fields for business assets and liabilities — see the calculator for the full breakdown.
Do I pay zakat on rental income?
Yes, but on the income you've accumulated, not on the property itself. If you own rental properties, the net rental income that you have saved and still hold at your zakat date is zakatable — that is, the rental income remaining after deducting property-related expenses such as the mortgage on that property, property taxes, insurance, and maintenance costs. The rental property itself (the building and land) is not zakatable because it is not held for resale — it is a productive asset, similar to business equipment.
About This Calculator
Is the Zakatable calculator free?
Yes, completely free with no account required. There are no premium features, no paywalls, and no ads.
Does Zakatable store my financial data?
No. The entire calculation runs in your browser. No financial data is transmitted to any server, stored in any database, or shared with any third party. Your data stays on your device and disappears when you close the page.
Is Zakatable affiliated with any charity?
No. Zakatable is an independent tool. It is not affiliated with any charity, mosque, or zakat collection organization. The calculator exists solely to help you determine your zakat accurately. Where and how you choose to give your zakat is entirely your decision.
What scholarly sources does Zakatable use?
The calculator draws on published positions from the Fiqh Council of North America (FCNA), the Assembly of Muslim Jurists of America (AMJA), the International Islamic Fiqh Academy (IFA), AAOIFI Shari'ah standards, the National Zakat Foundation (NZF), and individual scholars including Joe Bradford and Mufti Faraz Adam. See our methodology page for full details.
Who Receives Zakat?
Who is eligible to receive zakat?
The Quran specifies eight categories of zakat recipients in Surah At-Tawbah (9:60): the poor (al-fuqara) — those who lack sufficient means to meet their basic needs; the needy (al-masakin) — those who have some resources but not enough to cover their essentials; zakat administrators — those formally employed to collect and distribute zakat; those whose hearts are to be reconciled (al-mu'allafatu qulubuhum) — including new Muslims who need support; freeing those in bondage (fi al-riqab); the debt-ridden (al-gharimin) — those burdened by legitimate debts they cannot repay; in the cause of Allah (fi sabilillah); and the stranded traveler (ibn al-sabil) — someone cut off from their resources while traveling. These eight categories are established by universal scholarly consensus as the sole recipients of zakat.
Can I give zakat to family members?
All four schools of Islamic jurisprudence agree that you cannot give zakat to your direct ascendants (parents, grandparents) or descendants (children, grandchildren) — you are already responsible for supporting them, so giving them zakat would effectively relieve you of a prior obligation. A husband also cannot give zakat to his wife under any school, since he is responsible for her maintenance.
Whether a wife can give zakat to her husband is debated — the Shafi'i school and some Hanafi scholars permit it, while the Hanbali school and other Hanafi scholars do not. There is a hadith in which the Prophet ﻟﻠﻣ indicated to the wife of Abdullah ibn Mas'ud that her husband and children were most deserving of her charity, though scholars differ on whether this applies specifically to zakat or to voluntary charity.
Extended family members — siblings, aunts, uncles, cousins, nephews, nieces, and in-laws — can receive your zakat if they genuinely qualify under one of the eight categories. In fact, many scholars consider giving zakat to eligible relatives preferable to giving it to non-relatives, as it combines the obligation of zakat with the virtue of maintaining family ties.