What Is Zakat in Islam?
Zakat is an Islamic financial term. As one of the pillars of Islam, it requires all Muslims to donate a portion of their wealth to charity. Muslims must meet a certain threshold before they can qualify for zakat. The amount is 2.5% or 1/40 of an individual's total savings and wealth. Zakat can be paid at any time during the lunar year.
How Do You Calculate Zakat?
Muslims should take inventory of their possessions and wealth. Once they reach nisab or the threshold, which is the value of 87.48 grams of gold or 612.36 grams of silver, they must pay zakat. The total amount to be paid is 2.5% or 1/40 of their total savings and wealth. Muslims can use any number of zakat calculators which are available online to determine their obligations.
What Are the Rules of Zakat?
Individuals must meet a certain threshold known as nisab in order to qualify for zakat every lunar year. This is set at the value of 87.48 grams of gold or 612.36 grams of silver. People whose wealth exceeds the value of these amounts must pay 2.5% of the value of their wealth in zakat. Individuals who do not meet this limit are not obligated to pay.
How Much Are Muslims Obligated to Pay in Zakat?
Muslims are obligated to pay 2.5% of the total value of their wealth less any liabilities in zakat provided they reach nisab. This is the threshold, which is the value of 87.48 grams of gold or 612.36 grams of silver.