Zakat is one of the Five Pillars of Islam and is an obligatory form of charity. It is a means of purifying one's wealth and helping those in need. The word "Zakat" comes from the Arabic root meaning "to purify" or "to grow."

Zakat is not a tax, but rather a divine obligation that purifies wealth and benefits society. It is calculated at 2.5% of one's zakatable wealth that has been held for one lunar year (hawl).

Zakat is obligatory upon every Muslim who meets the following conditions:

• Adult and Sane: Must be of sound mind and have reached puberty
• Muslim: Zakat is a religious obligation for Muslims only
• Ownership: Must have full ownership and control of the wealth
• Above Nisab: Wealth must exceed the minimum threshold (nisab)
• One Lunar Year: Wealth must be held for a complete lunar year (hawl)

Nisab is the minimum amount of wealth a Muslim must possess before they are liable to pay Zakat. It is based on the value of gold or silver:

Most scholars recommend using the silver nisab as it is lower and ensures more wealth is distributed to those in need. The value fluctuates with market prices, so it should be checked regularly.

Hawl refers to the Islamic lunar year (approximately 354 days). For wealth to be subject to Zakat, you must possess it above the nisab threshold for a complete lunar year.

Tip: Many Muslims choose to pay their Zakat during Ramadan for increased blessings, even if their hawl date is different.

Zakat is due on the following types of wealth:

The Quran specifies eight categories of people eligible to receive Zakat (Surah At-Tawbah 9:60):

Paying Zakat brings numerous spiritual and social benefits: