What is Zakat?
Zakat is the third pillar of Islam — an obligatory annual act of worship and social welfare. This guide covers who pays Zakat, how much, and where it goes.
The definition of Zakat
Zakat (Arabic: زكاة) means "purification" and "growth." It is the obligatory annual charity that every eligible Muslim must give — 2.5% of their total qualifying wealth held above the Nisab threshold for one full lunar year (the Hawl). It is the Third Pillar of Islam, mentioned 32 times in the Quran alongside Salah (prayer).
Unlike voluntary charity (Sadaqah), Zakat is a precise financial obligation. It is not a gift — it is the right of the poor, described in the Quran as belonging to those in need from those who have been blessed with wealth (Surah At-Tawbah 9:60).
Who must pay Zakat?
Zakat is obligatory for every adult, sane Muslim who:
- Owns net wealth equal to or above the Nisab threshold
- Has held that wealth for one full lunar year (the Hawl)
- Is free (not enslaved)
Children and those who do not meet the Nisab are not obligated. Non-Muslims do not pay Zakat.
The Nisab threshold
The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes due. It is calculated based on the value of either gold (87.48 grams) or silver (612.36 grams). Most scholars recommend using the silver Nisab as it is lower, ensuring more Muslims meet their obligation.
In 2026, the silver Nisab is approximately £499 GBP or $631 USD. Use our Zakat calculator for today's exact figure.
The Zakat rate — 2.5%
The Zakat rate is 2.5% of total net zakatable wealth — unanimously agreed by all four Sunni schools of Islamic jurisprudence (Hanafi, Maliki, Shafi'i, and Hanbali). For every £1,000 of qualifying wealth above the Nisab, you owe £25 in Zakat.
What is zakatable?
Zakat is due on the following categories of wealth: cash savings, gold, silver, stocks and investments, business inventory, receivables, accessible pension savings, crypto assets, and net rental income. It is not due on your home, car, clothing, or household goods.
The eight categories of Zakat recipients
The Quran specifies eight categories of people who may receive Zakat (Surah At-Tawbah 9:60): the poor (al-Fuqara), the destitute (al-Masakeen), Zakat administrators, those whose hearts are to be reconciled, those in bondage, the debt-ridden, in the cause of Allah, and the stranded traveller. World Aid Network distributes exclusively to the poor and destitute through medical care.
When should Zakat be paid?
Zakat should be paid once per lunar year, on the anniversary of your Hawl (the date your wealth first reached the Nisab threshold). Many Muslims choose Ramadan for the additional spiritual reward, but Zakat is valid whenever paid after the Hawl is complete. Delaying Zakat without reason is impermissible once it is due.