What is Zakat?
An obligatory annual payment on qualifying wealth, given to specified categories of recipients. For money, gold, silver and trade goods it is commonly one-fortieth (2.5%) of net zakatable wealth.
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Short notes on Zakat.
The same notes you will find in the app. They describe common positions and where schools differ. They are a starting point, not a ruling.
إِنَّمَا ٱلصَّدَقَٰتُ لِلْفُقَرَآءِ وَٱلْمَسَٰكِينِ وَٱلْعَٰمِلِينَ عَلَيْهَا وَٱلْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِى ٱلرِّقَابِ وَٱلْغَٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبْنِ ٱلسَّبِيلِ ۖ فَرِيضَةً مِّنَ ٱللَّهِ ۗ وَٱللَّهُ عَلِيمٌ حَكِيمٌ ٦٠
The basics
Nisab
Zakat is due only if your zakatable wealth meets a minimum threshold, commonly 87.48 g of gold or 612.36 g of silver. Authorities differ on which standard to use for money.
Hawl, the lunar year
Wealth generally needs to remain at or above Nisab for one full lunar year. Your Zakat anniversary marks the end of that year. Schools differ on wealth acquired during the year.
What is usually included
Cash and bank balances, gold and silver held as savings, trade goods, many investments, and money owed to you that you expect to recover.
What is usually excluded
Your home, personal car, household items, tools of your trade and business equipment. Personal jewellery differs between schools.
Zakat and sadaqah
Zakat is a fixed obligation with set conditions and recipients. Sadaqah is voluntary charity, given in any amount at any time. Nisabi records Zakat payments.
Asset by asset
Cash and bank
Cash you own and can access is generally fully zakatable, in any currency.
Gold and silver
Coins, bars and savings are generally zakatable. Schools differ on jewellery you wear.
Shares and investments
Treatment can depend on whether you trade them or hold them long term.
Retirement accounts
Views differ, often on how much you can access now.
Crypto
A newer question on which scholars are still writing. Record it and review carefully.
Business wealth
Trade goods and business cash are commonly included; equipment is commonly not.
Property and land
Your intention matters. A home is usually excluded; property held for resale is usually included.
Money owed to you
Debts you expect to recover are often included. Doubtful ones are treated differently.
Agriculture and livestock
These have their own rules, not the 2.5% cash formula. Nisabi records and flags them.
Ownership, debts and giving
Ownership
Zakat generally applies to what you fully own and can access. Shared assets count at your share. Disputed property, or money held for someone else, needs care.
Debts
Many scholars allow debts due now to be deducted. Schools differ on long-term debts such as a mortgage.
Relatives
Many scholars hold that Zakat is not given to those you are already obliged to support, such as parents, children or a spouse. Other relatives in need may be eligible. Ask a scholar about your case.
Organisations
If an organisation distributes on your behalf, ask how it keeps Zakat separate and who receives it. Nisabi does not certify any organisation as Zakat-compliant.
For complex assets, disputed rulings, unclear ownership, historical unpaid Zakat or a large obligation, ask a qualified scholar.
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