Table of Contents

Definition of Zakah and Types of Wealth

Question: What is zakah?

Answer:

Zakah is a financial act of worship that Allah has made obligatory upon Muslims who possess a certain amount of wealth. A Muslim gives a specified portion of that wealth to eligible recipients, such as the poor, in gratitude to Allah and as a means of purifying the wealth and the soul.

Allah says:

“Establish prayer and give zakah.” [Al-Baqarah 2:43]

The Prophet ﷺ said:

“Islam is built upon five,” and he mentioned among them “giving zakah.” Agreed upon by al-Bukhari and Muslim.

Question: What types of wealth are subject to zakah?

Answer:

Zakah is due on types of wealth such as gold, silver, money, trade goods, crops and fruits, livestock, and buried treasure (rikaz). Each type has its own conditions and rules.

Question: What is meant by livestock?

Answer:

It refers to camels, cattle, and sheep and goats. Sheep and goats include both sheep (dhan) and goats (ma'z).

Question: What is rikaz?

Answer:

Rikaz is wealth buried in the earth from pre-Islamic times. If it is found and recovered, zakah is due on it.

Question: What are trade goods?

Answer:

Trade goods are assets that a person owns and has prepared for sale.

Question: Are a company’s building and essential tools considered trade goods?

Answer:

No. A company’s building and essential tools used in its work are not trade goods, because they are intended for use rather than sale.

Question: If someone who is not a trader wants to sell personal property, such as a private home or car, does it become trade inventory?

Answer:

No. A private home or car does not become trade inventory merely because its owner wants to sell it, so long as it was not acquired with the intention of trading and earning a profit.

Question: If a trader wants to sell property outside the business, such as a personal home, does it become trade inventory?

Answer:

No. A trader’s personal home, which is separate from the business, does not become trade inventory merely because the trader wants to sell it.

General Conditions of Zakah

Question: What is the nisab?

Answer:

The nisab is the minimum amount of wealth at which zakah becomes due. Zakah is not due on wealth below this threshold.

Question: What is the hawl?

Answer:

The hawl is the completion of one full Hijri (lunar) year with respect to the wealth.

Question: When does the hawl begin?

Answer:

The hawl begins on the day the wealth reaches the nisab. When one full Hijri year passes after the nisab is reached, zakah becomes due.

Question: On whom is zakah obligatory?

Answer:

It is obligatory upon a Muslim when the wealth meets the conditions applicable to its type.

Question: Is zakah due on the wealth of children and people who are mentally incapacitated?

Answer:

Yes. Zakah is due on a child’s or mentally incapacitated person’s wealth if it reaches the nisab and completes a hawl. Their guardian pays it from their wealth.

Question: Is zakah due on wealth jointly owned by several people?

Answer:

Each person’s share is considered separately. If an individual share reaches the nisab and the other conditions are met, that person must pay zakah on their share.

Question: Is additional wealth of the same kind added to the original wealth?

Answer:

Yes. If wealth of the same kind increases during the hawl, the increase is added to the original wealth. It does not need to reach a separate nisab or complete a separate hawl; it follows the hawl of the original wealth.

Question: Is zakah paid only once, or every year?

Answer:

It is paid every Hijri year if the wealth continues to meet the conditions of zakah. Paying it once is not sufficient.

Question: Is it permissible to pay zakah before the hawl is complete?

Answer:

Zakah may be paid in advance after the wealth reaches the nisab and before the hawl is complete. It may not be paid before the nisab is reached.

Question: Is it permissible to delay zakah after it becomes due?

Answer:

It is not permissible to delay it without a valid excuse. Delay is permissible when there is an excuse, such as being unable to deliver it to eligible recipients, until that excuse ends.

Question: Does the hawl reset if the wealth falls below the nisab?

Answer:

Yes. If the wealth falls below the nisab during the hawl, the hawl is interrupted. A new hawl begins when the wealth again reaches the nisab.

Question: Must a Muslim make the intention of zakah when paying it?

Answer:

Yes. One must intend in the heart that what is being paid is zakah, because zakah is an act of worship.

Question: Must a poor recipient be told that what they are receiving is zakah?

Answer:

No. It is not necessary to tell them.

Question: If wealth exceeds the nisab, must the increase reach a separate nisab?

Answer:

No. The increase is added to the original wealth and included in the zakah calculation.

The Difference Between Zakah and Sadaqah

Question: What is the difference between zakah and sadaqah?

Answer:

Obligatory zakah is mandatory, while voluntary sadaqah is recommended charity. Zakah has specific amounts and conditions set by Islamic law, whereas voluntary sadaqah has no fixed amount.

Question: Why is zakah sometimes called sadaqah in books of Islamic jurisprudence?

Answer:

Because the word sadaqah has a broader meaning: it may refer both to obligatory zakah and to voluntary charity.

Zakah on Money, Gold, and Silver

Question: What is meant by money?

Answer:

Money is what people use in buying and selling, such as euros, dollars, riyals, and liras, whether held in cash or in a bank account.

Question: Does moving money between accounts or depositing cash into an account interrupt its hawl?

Answer:

No. Moving the same money between accounts or depositing cash does not interrupt the hawl, because it is a transfer of the same wealth, not newly acquired wealth.

Question: What is the nisab for money?

Answer:

The nisab for money is determined by the value of 85 grams of 24-karat gold.

Question: Are different currencies combined to complete the nisab?

Answer:

No. Each currency is a separate kind of wealth, and different currencies are not combined with one another.

Question: What are the nisabs for gold and silver?

Answer:

The nisab for gold is twenty mithqals, estimated at about 85 grams of 24-karat gold. The nisab for silver is two hundred dirhams, estimated at about 595 grams of silver.

Question: How is gold of different karats calculated?

Answer:

Calculate the amount of pure gold using this formula: weight × karat ÷ 24. Then add the results and compare the total with the gold nisab.

Karat Calculation
24 The weight itself
22 Weight × 22 ÷ 24
21 Weight × 21 ÷ 24
18 Weight × 18 ÷ 24
14 Weight × 14 ÷ 24
Any other karat Weight × karat ÷ 24

Question: What is the zakah rate on gold and silver?

Answer:

It is one quarter of one tenth (2.5%): two and a half grams for every one hundred grams.

Question: What is the zakah rate on money?

Answer:

It is 2.5% of the wealth that has reached the nisab and completed a hawl.

Question: May gold be combined with silver or money to complete the nisab?

Answer:

No.

Question: What is the ruling on gold worn as jewelry?

Answer:

There is a scholarly difference of opinion regarding gold intended for adornment. The view considered strongest by the majority of jurists is that no zakah is due on it. Gold kept as savings is subject to zakah if it reaches the nisab and completes a hawl, even if it is fashioned as jewelry.

Question: Are gemstones and settings included in the weight of gold?

Answer:

No. Gemstones and settings are excluded from the weight; zakah is paid on the gold alone.

Question: Is zakah due on jewelry made from materials other than gold or silver, such as diamonds or agate?

Answer:

No zakah is due on such items if they are for personal use or collection. If they are prepared for trade, they are treated as trade goods.

Question: When does the hawl begin for inherited gold?

Answer:

Its hawl begins on the day it is received.

Question: Is gold valued at its purchase price or its value when zakah is paid?

Answer:

It is valued at its price when zakah is paid, not at its purchase price.

Question: May zakah on gold be paid in money?

Answer:

It may be paid in gold itself or as its monetary value. The value is calculated using the gold price when zakah is paid.

Question: Is the crafting fee included in the weight of gold?

Answer:

No. The crafting fee is not included in the gold weight used to calculate zakah.

Question: Is zakah due on gold or silver vessels, or on statues made from them?

Answer:

Yes. Zakah is due on gold and silver fashioned as vessels or statues if the conditions of zakah are met. A person who owns a statue should be advised to sell it or exchange it, because making statues in this form is prohibited.

Question: What should someone do if they find gold buried by them years ago and forgotten?

Answer:

They pay zakah on the gold for all the past years.

Question: Does exchanging gold interrupt its hawl?

Answer:

If the exchange takes place immediately, the hawl is not interrupted. If there is a delay, it is interrupted. Trying to evade zakah does not remove the obligation.

Question: What is the ruling on gold that its owner cannot access, such as stolen gold?

Answer:

Zakah is not due while its owner is unable to access it. Once it is recovered, the owner begins calculating a new hawl.

Question: If someone recovers lost wealth after several years, how much zakah do they pay?

Answer:

They pay zakah for one year.

Question: What is the ruling on usurped wealth if it is returned to its owner?

Answer:

Zakah is paid for the most recent year only.

Trade Goods and Investments

Question: When is zakah due on trade goods?

Answer:

Zakah is due on property that a trader owns with the intention of selling it. The nisab is based on the value of the trade assets. The hawl is tied to the capital, even if the goods change during the year.

Question: Is zakah due merely because property is offered for sale?

Answer:

No. Merely offering property for sale does not make it trade inventory if it was not acquired with the intention of trade.

Question: Is financial leverage included among zakatable assets?

Answer:

No. Financial leverage is not counted among zakatable assets; it should also be noted that using it is prohibited.

Question: Is zakah due on the property or car itself if it is held for rental?

Answer:

No zakah is due on the rental property or car itself.

Question: Is zakah due on the principal value of shares?

Answer:

Shares are assets, and according to the view adopted in this encyclopedia, zakah is not due on the principal value of the shares. Their profits are considered according to their circumstances, like other incoming wealth.

Question: What is the ruling on investment funds?

Answer:

Investment funds have the same ruling as shares in this matter, according to the view adopted here.

Question: How is zakah paid on profits from shares?

Answer:

Profits follow the ruling of incoming wealth, such as wealth generated by a sale, trade, or salary. They are added to wealth of the same kind and are subject to zakah when its conditions are met.

Debts and Financial Rights

Question: Is zakah due on a debt owed to me by someone else?

Answer:

Zakah is due on it if the debtor acknowledges the debt and repayment is expected when it falls due. If the debtor denies the debt or is insolvent and repayment is not expected, zakah is not due until the debt is recovered.

Question: Is a debt owed by the zakah payer deducted from their zakatable wealth?

Answer:

The debt that is due from the payer is deducted from the wealth on which they calculate zakah, according to the view adopted in this encyclopedia.

Crops, Fruits, and Livestock

Question: What is meant by crops and fruits?

Answer:

Crops are grains grown in the ground, such as wheat and barley. Fruits are what grow on trees, such as dates and grapes.

Question: What is the nisab for crops and fruits, and when does their zakah become due?

Answer:

Their nisab is five awsuq, equivalent to three hundred sa‘. Their zakah becomes due at harvest; a hawl is not required.

Question: What is the zakah rate on crops and fruits?

Answer:

The rate is one tenth (10%) for crops irrigated without cost, and half of one tenth (5%) for those irrigated at cost.

Question: Which crops are subject to zakah?

Answer:

The types adopted in this encyclopedia are wheat, barley, dates, and raisins. Other types are not included by analogy.

Question: Are farming expenses deducted before zakah is paid?

Answer:

No. Farming expenses are not deducted from the crop before calculating zakah.

Question: How is zakah calculated when a crop is irrigated by different methods?

Answer:

The predominant method of irrigation is considered. The rate is 10% if it is irrigated without cost and 5% if it is irrigated at cost. If both methods are used equally, the rate is three quarters of one tenth (7.5%).

Question: If the quality of crops of the same type varies, what should be given?

Answer:

Crops of the same type are combined. The zakah should be paid from the average or better quality, not from the poor-quality portion in place of the good.

Question: Who pays zakah on crops grown on rented land?

Answer:

Zakah is due from the owner of the crop, not the owner of the land.

Question: How is zakah calculated on crops jointly owned by partners?

Answer:

Each partner’s share is considered separately. A partner owes zakah only if their share reaches the nisab and the other conditions are met.

Question: If a crop has more than one harvest season, how is its hawl calculated?

Answer:

Each harvest season is considered separately, and the nisab and other conditions are assessed for that season’s crop.

Question: When does zakah become due on a crop sold before harvest?

Answer:

Zakah becomes due when signs of ripeness appear, and it is paid at harvest.

Question: What if the crop is destroyed after its zakah has become due?

Answer:

If the crop is destroyed before the owner is able to pay zakah and without negligence, the obligation is waived. If it is destroyed after the owner was able to pay, or through negligence, the zakah remains due.

Question: Does debt prevent zakah on crops and fruits, or is it deducted from them?

Answer:

Debt does not prevent zakah on crops and fruits, and it is not deducted from them.

Question: Is zakah due on olives?

Answer:

There is scholarly disagreement about zakah on olives. The Malikis, al-Awza‘i, al-Layth, and Ahl al-Ra’y (the jurists of rational opinion) held that it is obligatory. This is also one reported position of Ahmad and the earlier position of al-Shafi‘i. Al-Shafi‘i’s later position and another reported position of Ahmad held that it is not obligatory.

Question: May the monetary value of crop zakah be paid in cash?

Answer:

The basic rule is to give zakah from the crop itself. Paying its monetary value in cash is a matter of scholarly disagreement.

Question: Is zakah due on livestock that is fodder-fed?

Answer:

The zakah specific to grazing livestock is not due on fodder-fed animals. If they are held for trade, however, they are subject to zakah as trade goods.

Question: When is zakah due on grazing livestock?

Answer:

Zakah is due when the animals graze for most of the year, provided the nisab and the other conditions are met.

Question: What are the nisabs for cattle and sheep?

Answer:

The nisab for cattle is thirty, and the nisab for sheep is forty.

Question: When does the hawl begin for purchased livestock?

Answer:

Its hawl begins when it is purchased. Its zakah may be paid together with the zakah on livestock whose hawl began earlier.

Question: Does a newborn animal begin an independent hawl?

Answer:

No. The hawl of a newborn animal follows that of its mother.

Zakah Recipients and Rules for Payment

Question: Which categories of people may receive zakah?

Answer:

There are eight categories: the poor, the needy, zakah administrators, those whose hearts are to be reconciled, those in bondage, debtors, in the cause of Allah, and the stranded traveler. Allah says: “Zakah expenditures are only for the poor and the needy, and those employed to collect it, and those whose hearts are to be reconciled, and for freeing slaves, and for those in debt, and in the cause of Allah, and for the stranded traveler” [Al-Tawbah 9:60].

Question: Is it permissible to give zakah to a trustworthy charity?

Answer:

Yes. Zakah may be given to a trustworthy charity acting as the payer’s agent, provided it distributes the zakah to eligible recipients in accordance with Islamic rulings.

Additional Questions About Paying Zakah

Question: Is it permissible to buy food or clothing for a poor person using zakah?

Answer:

The basic rule is to give zakah to the poor person as money that they own and may use as they wish. Food or clothing may be bought for them if the payer has been appointed to do so, or if there is a need or a clear benefit, such as when the poor person is incapable of managing money wisely.

Question: What is the ruling on giving zakah to a poor person who smokes or spends money on sin?

Answer:

If the person is eligible for zakah, it is permissible to give it to them. However, if it is known or strongly expected that they will spend it on sin, it should not be given to them in cash. Instead, their necessary needs may be purchased, or the zakah may be given to someone who supports them, so that zakah does not assist them in sin.

Question: May zakah be given to someone who wants to marry but cannot afford the essential costs?

Answer:

It may be given to someone who cannot afford the essential costs of marriage, because marriage is among their basic needs and their available wealth is insufficient. They should be given only what they need, without extravagance.

Question: May people who work for charities receive zakah?

Answer:

Yes, they may receive zakah if their work involves collecting it and distributing it to eligible recipients.

Question: May zakah be given to Banu Hashim and the Prophet’s household?

Answer:

The basic ruling is that they may not be given obligatory zakah. Voluntary charity may be given to them, according to the view considered strongest by the majority of jurists. Some jurists held that if they are denied their right from the fay’ and spoils of war and are in need, zakah may be given to them to meet that need.

Zakat al-Fitr

Question: What is zakat al-fitr?

Answer:

Zakat al-fitr is a measure of food given by a Muslim at the end of Ramadan to purify the fasting person from idle and indecent speech and to feed the poor.

Ibn ‘Abbas, may Allah be pleased with him, said: “The Messenger of Allah ﷺ prescribed zakat al-fitr as purification for the fasting person from idle and indecent speech, and as food for the poor.” It is a hasan hadith.

Question: On whom is zakat al-fitr obligatory?

Answer:

It is obligatory on every Muslim, male or female, young or old, whether or not they fasted, if they possess more than what is needed for their own food and the food of those they are responsible for supporting on the day and night of Eid.

Question: On whose behalf does a Muslim pay zakat al-fitr?

Answer:

A person pays it on their own behalf, and on behalf of their minor children and spouse; this is the view of the majority of jurists. It is not obligatory on behalf of an unborn child.

Question: What is the amount of zakat al-fitr, and what food should it be given from?

Answer:

Its amount is one sa‘ of the staple food commonly eaten by the people of the region, such as wheat, rice, dates, lentils, or similar staple foods. It is not given in non-staples such as tea or sugar.

Abu Sa‘id al-Khudri, may Allah be pleased with him, said: “In the time of the Messenger of Allah ﷺ, on the day of Fitr, we used to give one sa‘ of food.” Agreed upon by al-Bukhari and Muslim.

Question: What is a sa‘?

Answer:

A sa‘ is a prescribed measure equal to four mudd. A mudd is the amount held by the cupped hands of a person of average build. It is measured by volume, not by a fixed weight, because the weight of a sa‘ varies according to the type of food.

Question: How many kilograms is one sa‘?

Answer:

A sa‘ does not have one fixed weight: a sa‘ of rice weighs differently from a sa‘ of flour or dates. Anyone who wishes to measure it by weight should weigh one sa‘ of the specific food they intend to give.

Question: When is zakat al-fitr paid?

Answer:

Its time begins at sunset on the last day of Ramadan and ends with the Eid prayer. It is best to pay it before the prayer. If it is paid after the prayer, it is not counted as zakat al-fitr but as ordinary charity.

Question: Is it permissible to pay zakat al-fitr before Eid?

Answer:

It may be paid one or two days before Eid, but not earlier than that, because its purpose is to provide food for the poor on the day of Eid.

Question: May zakat al-fitr be paid in cash?

Answer:

Cash does not suffice. It must be given as food, because the Prophet ﷺ prescribed it as one sa‘ of food.

Question: Who should receive zakat al-fitr?

Answer:

According to the stronger view, it is given to the poor and needy, because its purpose is to feed those who lack food. It may be given to a needy relative, but not to one’s parents or grandparents, children or grandchildren, or wife, because their maintenance is obligatory upon the payer.