What is Zakat?
What Zakat is: the obligatory annual charity of 2.5% on wealth above the nisab, its place as the third pillar of Islam, how it differs from sadaqah and Zakat al-Fitr, and why it is paid.
Zakat means purification and growth. It is the obligatory charity that a Muslim who has wealth above a minimum level (the nisab) pays once a year, usually 2.5% of the qualifying wealth. It is the third of the five pillars of Islam and is often mentioned in the Quran beside prayer.
Conditions
In the common teaching, zakat is due from an adult Muslim of sound mind who owns wealth above the nisab, which has been held for a full lunar year (hawl), after paying necessary debts. Schools differ on some details.
What it is not
- It is not sadaqah, voluntary charity of any amount at any time.
- It is not Zakat al-Fitr (fitrana), the small charity paid before the Eid prayer at the end of Ramadan on behalf of each person; see our Eid al-Fitr guide.
- It is not a tax paid to the state in India, and it is separate from income tax.
When people pay
Many pay in Ramadan, because rewards are said to be greater, but zakat is due on the date of the zakat anniversary, and a person may fix one date every year. Many people choose a date and calculate on that day.
This is a calculator and a plain explanation, not a fatwa. Schools of thought differ on what is zakatable (for example, jewellery, shares and business assets) and on how to value them. For your own case, ask a trusted scholar or a zakat office.