How is zakat calculated?
The rule of zakat calculation rests on two key concepts: the nisab (minimum threshold) and the amount (required percentage). The main source of the rule in classical Islamic jurisprudence is the hadith of the Prophet (peace be upon him).
What is the nisab?
Nisab is the minimum amount of wealth on which zakat becomes obligatory. The Prophet (peace be upon him) said:
"There is no zakat on silver below five uqiyyahs (approximately 200 dirhams of silver)..."
(Sahih al-Bukhari, hadith no. 1405; Sahih Muslim, hadith no. 979)
Classical nisab amounts
- Gold — 85 grams (20 mithqals)
- Silver — 595 grams (200 dirhams)
- Money — equivalent of the gold or silver nisab
The zakat rate: 2.5%
For money, gold, silver and trade goods the zakat rate is 1/40 (2.5%). That is, 2.5% of wealth that has reached the nisab and over which one Hijri year has passed is given as zakat.
Calculation example
- Sum up all material wealth (cash, gold, silver, trade goods)
- Subtract debts
- If it exceeds the nisab and one year has passed
- Calculate 2.5% of the remaining amount
Example: for someone with 10,000 AZN held for one year: 10,000 × 0.025 = 250 AZN zakat.
When is zakat paid?
Zakat becomes obligatory once one Hijri year has passed over the wealth. The reward of paying zakat in Ramadan is greater, but once obligatory it should not be delayed.
Who must zakat be given to?
Zakat is given to the 8 categories outlined in Surah At-Tawbah, verse 60: the poor, the needy, debtors, wayfarers and others. See the article "Who is sadaqah given to?" for more.
Contact
- +994 51 763 90 15 (for men)
- +994 70 966 19 70 (for women)
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