Knowledge Bank

Your Zakat year should begin on the date your wealth equals or surpasses the Nisab. If your wealth equals or surpasses the Nisab after one lunar year has passed (also known as Hawl), then Zakat will be payable. In this instance, you will use this date again for the following year.

If your wealth did not equal the Nisab after one year, then you will not have to pay Zakat. Furthermore, you will wait to see when your wealth equals or surpasses Nisab.

Your Zakat due date

The moment your wealth equals or surpasses Nisab, that will initiate a new year for Zakat. You will then see a year after this new date whether your wealth equals to or surpasses the Nisab. This is referred to as your ‘Zakat due date’ or ‘Zakat anniversary’ on this website.

Zakat is due immediately upon your Zakat anniversary. If you’re not sure when this is or you’re paying for the first time, simply work out the day you first owned wealth over and above the Nisab threshold (if you don’t know the exact date you can estimate). Once you’ve paid your Zakat once this then becomes your Zakat anniversary.

Zakat can be pre-paid before your Zakat anniversary. This is to encourage people to increase in worship and make the most of blessed times like Ramadan or the first ten days of Dhul Hijjah. If you do pay early, you still need to work out your Zakat due on your Zakat anniversary to make sure you’ve paid the right amount.

Do I have to pay Zakat in Ramadan?

Paying Zakat in Ramadan is not necessary, although giving charity in this month guarantees greater rewards.

And Allah knows best. 

Zakat is a compulsory act of worship that requires Muslims who own wealth at or above a certain threshold to donate a portion of that wealth, typically 2.5%, to those who are eligible. This threshold is called the Nisab.

The Nisab was set by the Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver. In today’s day and age we do not use silver or gold as monetary exchange so when calculating your Zakat, you need to find out the equivalent of the rates the Prophet (peace be upon him) set but in your local currency. This can be done by checking the market rate of gold and silver today.

Remember you only pay Zakat if your net assets equal or exceed the Nisab threshold. If you only have gold as an asset, then the Nisab measure for gold must be used. If, however, you have a mixture of assets, then the Nisab level for silver should be used. Although some scholars still maintain that gold should be used regardless, using silver is safer and more beneficial for the recipients of Zakat. In most cases this means that if your net assets (income and savings) are above the silver Nisab threshold, you must pay Zakat on the total amount of wealth you own.

The majority of scholars hold the opinion that Zakat is to be both paid and received by Muslims. Other forms of charity such as Sadaqah can be given to Muslims and/or non-Muslims alike.

Who can Zakat not be given to?

• The rich (except when such are among the workers of Zakat)
• Non-Muslims (although some scholars allow if they are close to converting and this will encourage them to take the step to join the faith)
• The family of the Prophet (peace be upon him)
• Lineal descendants i.e. children and grandchildren
• Lineal ascendants i.e. parents and grandparents
• Spouses

Note, the Hanafi school does not permit a wife to give Zakat to her husband. However the Shafi’i school permit the wife to give her Zakat to her needy husband.