What is Zakat?
payment made annually under Islamic law on certain kinds of property and used for charitable and religious purposes, one of the Five Pillars of Islam.
Who Needs to Pay Zakat?
All Muslim adults who are sane and possess the nisab (a minimum amount of wealth held for a year) should pay Zakat.
- Adult (have reached the age of puberty)
- Muslim (Zakat is not paid by non-Muslims)
- In complete ownership of the Nisab
What Should be Used to Calculate Zakat?
Zakat is payable at 2.5% of the wealth one possesses above the nisab.
How Do You Calculate Your Wealth for Zakat Purposes?
Zakat is calculated as 2.5% percent of your savings and financial assets that are not used towards your living expenses.
Wealth that is counted towards your zakat contribution includes:
1. Money in the bank.
3. Investments and stocks.
4. The value of secondary homes/vehicles.
5. Gold and silver in your possession.
What is the Nisab (Minimum Amount) for Zakat?
Nisab, which is equal to 85 grams of 24k gold, is the minimum amount of wealth one must have before they are liable to pay zakat.
When and How Should You Make a Zakat Payment?
Zakat is due once a year. However, a Muslim only pays Zakat when they have been in possession of the Nisab (minimum amount of wealth) for one full lunar year.
What is the best way to pay Zakat?
You can donate your zakat and give to organizations and nonprofits that help needy people and refugees, like the Bonyan Organization, which works in Yemen, Palestine and Syria.
Who is Eligible for Zakat?
There are eight categories listed in the Qur'an as being eligible to receive Zakat, and they are as follows:
1. Those living in poverty and with little to no income referred to as Fuqara
2. People who do not have access to basic needs and amenities, known as Al-Masakin
3. Individuals or organizations employed to distribute Zakat, also called Amil
4. Those who are new to Islam and friends of the community, referred to as Muallaf
5. People living in captivity and victims of slavery, known as Riqab
6. People who are in debt beyond their means, called Gharmin
7. Individuals who work for Allah's cause, also called Fisabilillah
8. People who are traveling and require help or assistance, referred to as Ibnus Sabil