What is Zakat?
Zakat is one of the Five Pillars of Islam. It is an obligatory act of worship where Muslims who possess wealth above a minimum threshold (Nisab) must give a portion (usually 2.5%) annually to those in need. Allah says: "And establish prayer and give Zakat..." (Quran 2:110)
Nisab Explained (Sunni vs Shia Fiqh)
The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. The application differs significantly between Islamic schools of thought:
Hanafi & Sunni Schools: Zakat (2.5%) is obligatory on all general wealth including cash, savings, trade inventory, gold (Nisab: 87.48 grams) and silver (Nisab: 612.36 grams) if held for one lunar year (Hawl).
Jafari (Shia / Ehl-e-Tashi): Obligatory Zakat is strictly limited to 9 items (gold/silver minted coins, specific livestock, and specific crops). Modern paper cash, general savings, and business profits are NOT subject to standard Zakat. Instead, they are subject to Khums (a 20% tax on annual surplus savings).
Frequently Asked Questions
Is Zakat due on my house and car?▼
No. Personal assets like your primary residence, car, clothing, and furniture are NOT subject to Zakat. Only wealth that is above your needs and held for one year is zakatable.
Do I pay Zakat on my gold jewelry?▼
According to Hanafi fiqh, yes — Zakat is due on all gold and silver, including jewelry worn regularly. Shafi'i and Hanbali scholars exempt jewelry that is worn regularly.
Can I pay Zakat in installments?▼
Yes. Many scholars permit paying Zakat in advance throughout the year, as long as the total amount is fulfilled by your Zakat due date.
Is Zakat required on debt and business inventory?▼
Yes, Zakat is due on business inventory meant for sale. For debts owed to you that you expect to recover, Zakat is also payable. Debts you owe to others can generally be deducted from your zakatable wealth.
Fiqh Disclaimer & References
Fiqh rulings can be nuanced depending on your personal circumstances and madhhab. While this information is researched based on Hanafi, Shafi'i, and Jafari schools, we strongly advise consulting with a local scholar or your specific Marja' for complex fatwas. References include: Fiqh al-Islami wa Adillatuh (Sunni), Sistani.org (Jafari).