Zakat on Gold and Jewelry

Islam considers gold and silver growing wealth in all forms; coin, bullion, or handicraft. One who possesses them at the threshold (Nisab), a value equal to 85 grams of pure gold in our time, must pay zakat on them as they are property which “increases,” and that’s the definition of zakat.

Women don’t pay zakat for the jewelry they use for ornamentation.

However; Muslims pay zakat on jewelry in four cases;

  • When one hoards it as a store of values to accumulate wealth.
  • When one hoards it in quantities commonly considered in excess of ordinary accumulation.
  • When the jewelry in itself or in aggregate, is recognized as extravagant; whether in quantity, in size as relates to monetary worth, or in composition as applies to its market price.

you can calculate how much you should pay pay zakat on gold, check our gold zakat calculator.

Zakat on Silver

As mentioned before, gold and silver are growing wealth in all forms. Therefore, both when they reach the “Nisab” are subject to zakat in all their forms. However; a plain silver ring for men, or a silver decorative sword hilt, and women’s jewelry, have no zakat to pay.

Zakat on Money in Banks

There are two types of deposited money in the bank;

  • Money deposited in Islamic banks.
  • Money deposited in banks that deal with interest and usury.

For the money deposited in Islamic banks, zakat must be paid on the capital money and the profit. Therefore, when a lunar year passes on the capital money that reaches the minimum amount of zakat, you have to pay zakat on all capital money and the profits.

For the money deposited in banks which deal with interest and usury; the zakat is due on the capital money only. There is no zakat on interest, as it is considered forbidden and impure money.

And you can’t give it to the poor and needy, to deduct it from the due zakat money.

Zakat on Business Assets

Business assets are subject to zakat, including;

  • Cash.
  • Finished goods.
  • Work in progress.
  • Raw materials.
  • Strong debts.

Meaning; the money owed to business that is likely to be received.

  • Business assets must be valued at their current market price.
  • For finished goods, this should be their retail sale price.
  • For unfinished goods; this should be whatever price you expect the unfinished good to fetch on your Zakat anniversary date.

Zakat Calculation on Cash and Saving

Zakat on Money that is Invested in Trade

Zakat is due to money that is invested in trade in this way; if a lunar year has passed since a Muslim has possessed this wealth, they should pay zakat on it, whether it’s on hand or is invested in trade. However, if one has earned some profit on it, during the same lunar year, the zakat for that profit money is due when the zakat on the original amount is due.

Zakat on Stocks and Investments

Zakat on stocks and investments is due.

Muslim zakat scholars consider shares and stocks as partial ownership of the capital of a corporation or business entity.

They define shares and stocks as a capital contribution that faces its ups and downs, so are the bonds they frame as contractual financial instruments of set terms and compensations. Therefore, both forms of wealth hold a market value that may rise or fall. Thus, zakat for both is due.

zakat on cash savings

Zakat is a percentage of your savings that you must give to charity each year. The zakat on cash savings is 2.5%. This means that if you have $1,000 in cash savings, you must give $25 to charity. Zakat is not the same as taxes. Zakat is a religious obligation, while taxes are imposed by the government.

Zakat on Startups

The zakat treatment on start-up and private equity investments is that the investor should pay on the net Zakatable assets of the company annually.

The investor should determine the ratio and percentage of net Zakatable assets in the company. Thereafter; the same percentage should be applied to one’s investment.

At the end; (2.5%) of this amount should be paid as zakat.

Zakat Calculation on Cash and Saving

Zakat on Investment Property

If the property (apartments, houses, buildings) is used as a private residence of the owner of the property, or of his relatives, or even others who authorized him to live in it, then there is no zakat due on it, because it is not “rented.”

If the property is for rent, then zakat is required on its proceeds, which is the amount he receives from the lessee, not on the property’s value.

Nisab Value 2022

Nisab is determined through the current value of gold and silver;

  • The Nisab value in gold is 3 ounces / 87.48 grams or its cash equivalent.
  • The Nisab value in silver is 21 ounces / 612.36 grams or its cash equivalent.


u003cstrongu003eHow to Calculate ZAKAT?u003c/strongu003e

To u003ca href=u0022 2.5 Zakat u003c/au003eon your wealth; multiply 2.5 with the leftover amount of your money. For Example; 2.5% x 12,000 USD = 300 USD is due for Zakat.

u003cstrongu003eHow to calculate zakat on cash?u003c/strongu003e

Zakat calculation is a complex process to determine the amount of zakat that has to be paid on the wealth.u003cbru003eHowever, with the help of an online calculator, you can quickly calculate zakat on your cash or assets.u003cbru003eyou can use our u003cstrongu003eu003ca href=u0022 target=u0022_blanku0022 rel=u0022noreferrer noopeneru0022u003eonline zakat calculatoru003c/au003eu003c/strongu003e.

u003cstrongu003eHow Much Is Zakat on Money?u003c/strongu003e

Zakat on money should be paid at (2.5%) on all cash balance and bank balance in your savings, current, or FD accounts. And the amount should be in the bank for the lunar year.

u003cstrongu003eWho Is Eligible For Zakat Money?u003c/strongu003e

1. The poor (Al-fuqara’).u003cbru003e2. The needy (Al- masakin).u003cbru003e3. The administrators.u003cbru003e4. Those whose hearts are to be reconciled; (new Muslims and the friends of the Muslim community).u003cbru003e5. Those in bondage (slaves and captives).u003cbru003e6. The debt-ridden.u003cbru003e7. In the cause of Allah.u003cbru003e8. The wayfarer; (who are stranded on traveling with few resources).

u003cstrongu003eHow to calculate zakat on gold?u003c/strongu003e

Zakat on pure gold reaches Nisab equals 87.48 grams which are equivalent to a quarter of one-tenth (2.5%) after one lunar year of possession.u003cbru003eZakat must be paid on 2.5% of the value of the gold that you own. A gram of gold costs £40.88, which equates to £1.02 Zakat per gram.

u003cstrongu003eHow Much Zakat is 7.5 Gold Tola?u003c/strongu003e

They are required to donate (2.5%) of their total wealth to those in need. Nisab was set by Prophet Muhammad (SAW) at 20 (Mithqaal) of gold or 200 (dirhams) of silver. This is the equivalent of (87.48) grams (7.5 tolas) of gold and (612.36) grams (52.5 tolas) of silver, respectively.

u003cstrongu003eHow Much is Gold Per Gram for Zakat?u003c/strongu003e

A gram of gold costs £40.88, which equals £1.02 Zakat per gram. Zakat is payable at (2.5%) of the wealth one possesses above the Nisab. Nisab, which is equal to three ounces of gold, is the minimum amount of wealth one must have before they are liable to pay zakat on gold.

u003cstrongu003eIs Zakat on Gold Every Year? u003c/strongu003e

Yes, Zakat on gold has to be paid annually.

u003cstrongu003eHow is Zakat Calculated on Cash in the Bank?u003c/strongu003e

If the money is deposited in Islamic banks; zakat must be paid on the capital money and on the profit as well. u003cbru003eBut if the money is deposited in banks that deal with interest and usury; the zakat is due on the capital money only. There is no zakat on interest, as it is considered forbidden and impure money.

u003cstrongu003ehow to calculate zakat on savings?u003c/strongu003e

An average of (2.5%) of the saved money.

u003cstrongu003eIs Zakat on Savings or Income?u003c/strongu003e

Zakat is only paid on saved money.

u003cstrongu003eWhat Money is Exempted From Zakat?u003c/strongu003e

The exempt money from zakat is the one that didn’t reach the Nisab and the money that didn’t pass a lunar year.

u003cstrongu003eIs Zakat Applicable on Business Investment?u003c/strongu003e

Yes. Business investments are partial ownership of the capital of the corporation or business entity. Muslim zakat scholars define business investment as a capital contribution that faces ups and downs and holds the market value that may rise or fall. Therefore, zakat on business investment is due.

u003cstrongu003eDo You Have to Pay Zakat on Stock Investments?u003c/strongu003e

Yes, there is zakat on stock investments, as it is considered partial ownership of the capital.

u003cstrongu003eIs Zakat Payable on Business Capital?u003c/strongu003e

Yes, zakat is obligatory on the business capital (the original money) as well as its profits, if the capital reaches the “Nisab” and one lunar year has passed.

u003cstrongu003eDo I have to pay zakat on gold every year?u003c/strongu003e

Zakat is a religious obligation that Muslims must pay to the needy. It is required to be paid on assets (gold, silver, or other assets) that have increased in value during the year.u003cbru003eZakat is one of the five pillars of Islam and it has a specific formula for calculating how much you should pay. The amount you pay depends on your wealth and income, which can be calculated by looking at your assets in terms of gold or silver.u003cbru003eThe amount you should pay varies according to the number of people who are below the poverty line in your country.

u003cstrongu003eHow much zakat to pay?u003c/strongu003e

Zakat is an obligatory charity tax that Muslims pay on their wealth. It is one of the Five Pillars of Islam.u003cbru003eThe zakat calculation is not necessarily a complicated task, but it can be done by hand or using a calculator. However, with the help of AI, we can now calculate zakat in just a few seconds without any effort at all.u003cbru003eyou can use our u003cstrongu003eu003ca href=u0022 target=u0022_blanku0022 rel=u0022noreferrer noopeneru0022u003eonline zakat calculatoru003c/au003eu003c/strongu003e

u003cstrongu003eHow much zakat to pay on cash?u003c/strongu003e

To calculate your zakat, you should multiply your total assets by 0.2%. This number can be found in some Islamic sources and it is also used by some Islamic scholars as a general rule for calculating zakat.u003cbru003eyou can use our to know the u003ca href=u0022 percentage on cashu003c/au003e

u003cstrongu003eTo whom we can give Sadaqah?u003c/strongu003e

Giving sadaqah is a pillar of Islam, and it can be given to anyone who is in need.u003cbru003eGiving sadaqah to someone who has a need is the best way that we can help them. It would be better if we give them our time and skills instead of money, because they will be able to use it in their own way.

u003cstrongu003eCan you give zakat to build a mosque?u003c/strongu003e

Giving zakat can help you build a mosque and people are encouraged to give zakat for themselves and their families, as well as for those who are less fortunate than them.