Zakat Guide

Simple, practical rules for what to count, subtract, and adjust.

Citation Scope (Accuracy-First)

Qur'an and hadith are cited where they directly establish ruling foundations (obligation, Nisab/Hawl, recipient framework). Post-Prophetic metrology and modern asset treatment details are sourced to fiqh councils, standards, fatwas, and historical references.

  • Zakat is 2.5% of net zakatable wealth.
  • It is due if you stay above the nisab for one lunar year.
  • This page uses common defaults (AAOIFI/NZF nisab, standard debt rules). Adjust settings if you follow a different view.

What to count

Include wealth you can access or trade into cash.

  • Cash, bank balances, and stored-value wallets (PayPal, Wise, etc.).
  • Gold and silver (jewelry, coins, bullion). Use karat to calculate pure metal; the jewelry toggle reflects common differences.
  • Stocks, funds, and crypto held as investments (see Settings & opinions for methods).
  • Receivables likely to be paid and business inventory at sale value; exclude tools and fixed assets.
  • Loans you have given to others are still your wealth. Include amounts likely to be repaid.
  • Property: holdings for resale are zakatable at market value; rental property is not, but saved rent is.
Show examples
  • $500 cash + $2,000 bank + $300 PayPal = $2,800.
  • 40g of 18K jewelry counts as 30g of pure gold (40 x 0.75).
  • $8,000 inventory + $3,000 receivables likely to be paid = $11,000.

What to subtract

Subtract liabilities that are due and payable within the year.

  • Short-term bills, credit balances, and near-term business payables.
  • Most guides allow only short-term debts and the next-year installment on long-term loans, not the full balance.
  • Debts tied to non-zakatable assets may not be fully deductible. Why?

Why this matters: if a debt financed a non-zakatable personal asset (like your primary home), many scholars only allow deducting the near-term installment, not the full remaining balance.

Show examples
  • $1,200 credit card + $6,000 next-year student loan payments = $7,200 deductible.
  • A $200,000 mortgage balance is not fully deductible; only the next-year portion if you use that method.

Settings & opinions

Some areas have valid differences. Choose a method you trust and stay consistent.

  • Nisab: choose gold or silver, then pick Standard or Conservative thresholds.
  • Gold and silver purity: use karat to calculate pure metal; personal jewelry can be included or excluded.
  • Stocks and funds are often zakatable at market value; some scholars use only the underlying zakatable portion.
  • Retirement accounts (401k, IRA, pensions) have multiple valid methods; 2Point5 lets you pick a simple default and document it.
  • Simple default: use the accessible amount (vested minus taxes/penalties) as your zakatable value.
Show examples
  • You pick silver nisab this year; use the same basis next year unless you intentionally change.
  • 401k with $20k vested and $3k in penalties/taxes -> $17k zakatable using the simple default.

What is not included

You do not pay Zakat on day-to-day life essentials.

  • Primary home, personal car, and household items.
  • Clothing and personal tools not held for sale.
  • Fixed business equipment used for operations.

Default assumptions in 2Point5

These are defaults only. You can change them in settings.

  • Nisab basis: gold by default; you can switch to silver.
  • Gold jewelry: included by default; you can toggle personal jewelry.
  • Debts: current liabilities by default; you can switch to next-year installments.

Note on differences of opinion

Zakat rulings can vary by madhhab and local guidance.

  • This page is educational and not a fatwa.
  • Consult a qualified scholar for unique circumstances.

Sources and References

Qur'an and Hadith Foundations

Fiqh Standards and Operational Guidance

Metrology and Historical References

Start calculating