What is Zakat? Complete Guide
Understanding the Third Pillar of Islam
Understanding Zakat
Zakat is one of the Five Pillars of Islam and is a mandatory form of charity for Muslims who possess wealth above a minimum threshold (Nisab). The word “Zakat” comes from the Arabic root meaning “to purify” – Zakat purifies your wealth and soul.
Why is Zakat Important?
Zakat serves multiple purposes in Islam:
- Spiritual purification: Cleanses the heart from greed and attachment to wealth
- Social welfare: Ensures wealth circulates in society and reaches those in need
- Community building: Creates bonds between rich and poor
- Economic balance: Prevents hoarding and promotes spending
“Take from their wealth a charity by which you purify them and cause them increase.”
— Quran 9:103
Who Must Pay Zakat?
Zakat is obligatory on every Muslim who:
- Is an adult (has reached puberty)
- Is of sound mind
- Possesses wealth above the Nisab threshold
- Has held this wealth for one lunar year (Hawl)
What is Nisab?
Nisab is the minimum amount of wealth required before Zakat becomes due. There are two measures:
- Gold Nisab: 87.48 grams of gold
- Silver Nisab: 612.36 grams of silver
Most scholars recommend using the silver Nisab as it’s lower and allows more people to benefit from Zakat distribution.
Who Can Receive Zakat?
The Quran specifies eight categories of Zakat recipients (Quran 9:60):
- Al-Fuqara (The Poor): Those without means of livelihood
- Al-Masakin (The Needy): Those who cannot meet basic needs
- Zakat Collectors: Those employed to collect and distribute Zakat
- New Muslims: Those whose hearts are to be reconciled
- Freeing Captives: Historically, freeing slaves
- Debtors: Those in overwhelming debt
- Fi Sabilillah: In the cause of Allah
- Travelers: Stranded travelers in need
How to Calculate Zakat
Zakat is 2.5% of your total Zakatable wealth. To calculate:
- Add all your Zakatable assets (cash, gold, silver, investments, business stock)
- Subtract any debts due immediately
- If the total exceeds Nisab, pay 2.5%
Example: If your Zakatable wealth is $10,000, your Zakat is $10,000 × 2.5% = $250
Zakat FAQs
What is Zakat in Islam?
Zakat is the third pillar of Islam, a mandatory charity of 2.5% on wealth above the Nisab threshold, paid annually to help those in need.
What is Zakat Al-Mal?
Zakat Al-Mal means “Zakat on wealth” and refers to the standard annual Zakat on savings, gold, and other assets.
Can I give Zakat to family?
You cannot give Zakat to those you’re obligated to support (parents, children, spouse). You can give to other relatives who qualify.