Zakat
Learn more about Zakat and get help with calculating how much you need to pay.
Importance of Zakat
Zakat is the third pillar of Islam. It is, first and foremost, a compulsory act of worship and not merely a voluntary act of charity. This distinction is critical in understanding that Zakat doesn’t just change the life of the receiver of the Zakat or society in general but also has a significant impact on the life of the giver. Therefore, one should never forget that paying for Zakat is primarily for oneself.
The word Zakat means ‘that which purifies’. It comes from the root letters Za, Kay and Ya, which have been used in the Quran numerous times with several related meanings: to be clean (24:21 and 23:4), to pay the obligatory charity (2:43), to be pure, innocent (19:19, 18:74), to increase in purity (18:81 and 19:13), and to claim purity (53:32).
Zakat is thus considered the way to purify one’s income and wealth from any impurities in its acquisition. It further purifies the soul from miserliness and reminds Muslims that their wealth is from Allah and, therefore, they have been obligated to spend in the way of Allah. In doing so, it cures from the illness of the love of worldly possessions.
Read more below or use our Zakat calculator to work out how much to paye this year.
Calculate Your Zakat
| + Bank Saving (Use lowest amount held for 1 year) | |
| + Gold & Silver (Monetary value) | |
| + Money owed to you (Deposits, loans you made) | |
| + Resale value of shares, stocks, bonds, etc. | |
| + Total £ | 0.00 |
| 2.5% of Zakat £ | 0.00 |
Nisab
Zakat is payable by any Muslim if their annual wealth exceeds a certain amount. This threshold is known as the Nisab and equals 87.48g of gold or 612.36g of silver. One can quickly check the value of gold and silver online. Scholars differ on which Nisab to use, but the majority agree that using the one that maximises the Zakat is better. Therefore, if your wealth exceeds the Nisab and you have held that amount for 12 months, Zakat becomes due.
A Zakat year starts on the day your wealth exceeds the Nisab and, therefore, is due on the anniversary of that date every year. However, many scholars have allowed you to choose a fixed date on which you will pay Zakat, and whatever you hold on that date, you should pay the required 1/40 or 2.5%. Most Muslims pick a date in Ramadan to maximise the rewards and blessings. It is also perfectly acceptable to calculate your expected Zakat in advance and pay in regular monthly instalments with a final payment to ensure that the annual Zakat due has been paid before the Zakat anniversary date.
Calculation
When calculating Zakat, it is essential to understand that Zakat is payable on all types of wealth or assets provided that its ownership is absolute and undivided. Assets to include are:
Gold and silver (ornaments or jewellery)
Cash held at home or in bank accounts
Cash lent to others
Property owned for investment purposes
Stocks and shares owned directly or through investment funds
Business stock in trade and merchandise
Agricultural produce
Livestock
Timing
Zakat should be paid over as soon as possible and not delayed unnecessarily, and whilst it is usually collected by the state, in the absence of this, it is acceptable to pay the Zakat directly to an eligible person or a charity. Miusafir takes the importance of Zakat as an act of worship exceptionally seriously and has extensive processes to ensure that it is only ever used for valid Zakat-eligible programmes that meet the criteria of one of the eight categories outlined in the Shariah.