Zakat is a pillar of Islam and is a compulsory charitable payment that goes on to benefit those in need.
All Muslim adults need to pay Zakat; the only exceptions are people who aren’t mentally well, and people who genuinely cannot afford to do so because their total wealth and savings are below a certain threshold called the Nisab.
Traditionally, the Nisab was calculated on the amount of gold or silver you own (which you can still calculate today). But in many modern societies, the Nisab threshold is considered to be when your total earnings and savings are below the poverty line.
If your wife has given consent to do so, then yes.
The Zakat percentage is 2.5% of your total wealth and savings.
So that’s 2.5% of any savings, gold or wealth you have above the Nisab threshold. Debts are also removed before working out your eligible wealth and your Zakat percentage.
You can apply the Zakat percentage to your wealth using our Zakat Calculator Online
The Zakat rules mean that you need to pay 2.5% of your total wealth and savings.
You can work out how and when to pay Zakat using our simple Zakat calculator.
Once you start earning enough money to go above the Nisab threshold (or the poverty line), you need to start keeping track of your wealth. One lunar year after the point where you’ve gone above the Nisab threshold – sometimes known as your ‘Zakat anniversary’ - you will need to pay your Zakat.
If you can’t remember your Zakat anniversary, don’t worry – we recommend choosing an Islamic date which is easy to remember, like the 27th night of Ramadan. Many Muslims choose to pay Zakat during Ramadan because the rewards of doing so are increased.
You can use our Zakat Calculator to work out how the Zakat percentage applies to your wealth, and how much Zakat you need to pay.
We have many amazing appeals where you can give your Zakat for great causes – and we have a 100% Zakat policy, which means that 100% of your Zakat goes to people in need, 100% of the time.
Can Zakat be paid in instalments or in advance?
Zakat can be paid in instalments throughout the year, as long as you pay the full amount by the end of the lunar year. This can work well if you have a steady income, and can predict how much you will earn in the 12 month period. Many of our Zakat applicable appeals have monthly payments; for example, if the amount you need to pay for Zakat is £300, you could donate £25 a month for a year and build a well in your name or that of a loved one with your Zakat!
You can calculate your Zakat and divide it equally into monthly instalments using our Zakat Calculator Online.
Is Zakat al-Fitr different to Zakat?
Zakat al-Fitr is a compulsory tax Muslims are due to pay before Eid al-Fitr, and is in addition to your Zakat.
Your Zakat al-Fitr is paid by all sane adults, who have food in excess of what their basic requirements are. It can be paid by the head of the household for their dependants.
How much is Zakat al-Fitr?
Zakat al-Fitr, also known as Fitrana, is equivalent to 4 madd - 1 madd is how much staple food can be scooped between your hands.
In the UK, this is equivalent to £3.50.
What is the Hawl?
The ‘Hawl’ refers to the lunar or Islamic year of 12 months.
The Nisab is the minimum amount of wealth a Muslim must have before they need to pay Zakat – sometimes referred to as the Nisab threshold. You can work out your Nisab on gold (LINK to Zakat on Gold page), as it is done traditionally.
But in many modern societies, the Nisab is generally agreed to be below the poverty line. So, if you are living above the poverty line, you are past the Nisab threshold and you will need to pay Zakat on your wealth and savings.
Your Zakat donation can be used to care for orphans or the elderly, provide emergency aid, give food and water or deliver healthcare and education.
Many of our life-changing appeals are Zakat applicable, and you can find out where you can give your Zakat here. We have a 100% Zakat policy, which means that every single penny of your Zakat donation will go directly to those in need, 100% of the time.