Zakat Explained: Who Pays, How Much and How to Calculate It

Zakat is the third of the five pillars of Islam. The Prophet ﷺ said that Islam is built on five: the testimony of faith, prayer, paying Zakat, Hajj and fasting in Ramadan (Sahih al-Bukhari 8). It is a set portion of your wealth, usually 2.5%, given each year to people in need. The word zakat means both "purification" and "growth": giving it purifies your wealth and, by Allah's promise, brings blessing to what remains.

Who has to pay Zakat?

Zakat is obligatory on a Muslim who:

• is an adult and of sound mind,
• owns wealth at or above the nisab (the minimum threshold), and
• has held that wealth for one full lunar year (the hawl).

What is the nisab?

The nisab is the minimum amount of wealth you must have before Zakat is due. It is based on the value of gold or silver:

Standard	Weight
Gold	87.48 grams
Silver	612.36 grams

Because the silver nisab is much lower in value, many scholars and UK charities recommend using it for cash and mixed savings, so that more people give. The cash value changes with gold and silver prices, so check today's figure with a trusted Zakat calculator or your local mosque before calculating.

Which wealth counts?

Usually counted	Usually not counted
Cash at home and in bank accounts	Your main home
Gold and silver	Your personal car
Savings and investments, such as shares	Furniture, clothes and household items
Business stock and goods for sale	Tools and equipment used for work
Money owed to you that you expect to be repaid

Scholars differ on details such as pensions, jewellery worn regularly and how to deduct debts. If your situation is complex, ask a qualified scholar.

How to calculate your Zakat

1. Choose your Zakat date and use the same Islamic date every year. Many people choose a date in Ramadan.
2. Add up your zakatable wealth on that date.
3. Subtract debts and bills due now, such as rent or a payment due this month.
4. Compare the total with the nisab. If it is at or above the nisab, Zakat is due.
5. Multiply by 2.5% (divide by 40).

Example: Aisha has £6,000 in savings, £1,500 in a current account and £500 cash at home, with a £400 bill due this week. Her zakatable wealth is £6,000 + £1,500 + £500 − £400 = £7,600. This is above the nisab, so her Zakat is £7,600 × 2.5% = £190.

Who can receive Zakat?

Allah names eight groups of people who may receive Zakat:

إِنَّمَا ٱلصَّدَقَٰتُ لِلْفُقَرَآءِ وَٱلْمَسَٰكِينِ وَٱلْعَٰمِلِينَ عَلَيْهَا وَٱلْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِى ٱلرِّقَابِ وَٱلْغَٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبْنِ ٱلسَّبِيلِ ۖ فَرِيضَةًۭ مِّنَ ٱللَّهِ ۗ وَٱللَّهُ عَلِيمٌ حَكِيمٌۭ

"Zakah expenditures are only for the poor and for the needy and for those employed to collect it and for bringing hearts together and for freeing captives and for those in debt and for the cause of Allah and for the stranded traveller – an obligation imposed by Allah. And Allah is Knowing and Wise." (Quran 9:60)

Zakat cannot be given to your parents, grandparents, children or grandchildren, because you are already responsible for supporting them. Many people give through registered Muslim charities that collect and distribute Zakat to eligible people.

Zakat al-Fitr is different

Zakat al-Fitr (Fitrana) is a small, fixed charity paid at the end of Ramadan for every member of the household, before the Eid prayer. It is separate from the annual Zakat on wealth. Your local mosque will announce the amount each year.

Quick FAQs

Can I pay Zakat monthly?

Many scholars allow paying in advance in instalments, as long as the full amount is paid by your Zakat date.

Do I pay Zakat on my salary?

Not separately. Whatever you have saved from your salary counts towards your wealth on your Zakat date.

Is Zakat the same as Sadaqah?

No. Zakat is obligatory and has fixed rules. Sadaqah is voluntary charity you can give at any time, in any amount.

This guide gives general information only. For your own circumstances, please consult a qualified scholar. Preparing for the holy month? See our Ramadan preparation checklist.