Types of obligatory zakat and their thresholds
God Almighty has made zakat obligatory for Muslims to purify the soul and wealth and to help the poor and needy who cannot provide for their needs. Zakat has succeeded in achieving social solidarity and economic balance, alleviating poverty and the suffering of the poor.
Zakat has several types, all of which carry multiplied reward from God. In this article, we will explain the most important information about each type, mention the beneficiaries, the role of associations, and how zakat has become a source of social solidarity.
Table of Contents
Definition of Zakat
Zakat is the act of giving a portion of wealth as a religious obligation for those who reach a specified nisab and have completed a full lunar year. It is the third pillar of Islam, and it must be given to the eligible categories mentioned in the Quran. It is a means of improving many people's conditions and purifying and growing the wealth of the giver.
Zakat in Language
Linguistically, zakat means blessing, increase, and purification, applying both to wealth and possessions as well as the soul.
Why Do We Pay Zakat?
Zakat is paid in Islam for the following reasons:
- Purification of the soul and wealth from stinginess or miserliness.
- Helping the poor and needy to meet their needs for a better life.
- A religious duty that strengthens faith in God.
- A way to spread mercy and strengthen social bonds to maintain a united society.
- Working to achieve economic balance by distributing wealth to all segments of society, not just one group.
Types of Zakat
Here are some types of zakat with explanations for each:
Zakat on Wealth
Zakat on wealth is obligatory at 2.5% if the wealth reaches the nisab and a full lunar year has passed. The purpose is to purify wealth and soul and help the needy live a dignified life.
Nisab for Zakat on Wealth
The nisab for zakat on wealth equals 85 grams of pure gold or 595 grams of silver. Zakat is obligatory at one-fortieth (2.5%) if the following conditions are met:
- The wealth reaches the legal nisab.
- A full lunar year has passed since acquiring the nisab.
- The wealth fully belongs to the giver, free of any co-ownership, and the giver has full control over it.
- The wealth is free from debts.
To calculate zakat, multiply the total wealth by 0.025 or divide by 40, after deducting any obligations or debts.
Zakat al-Fitr
Zakat al-Fitr is obligatory for every capable Muslim, small or adult, provided they have enough to cover their family's basic needs.
Amount of Zakat al-Fitr
The amount is one prophetic sa’ of staple food like rice, wheat, raisins, or dates per person, weighing about 2.5 to 3 kg. It should be given before the Eid prayer, though it can be given a couple of days earlier.
Zakat on Gold and Silver
This zakat is obligatory at 2.5% on gold, silver, and savings for investment if the nisab is reached and a full lunar year has passed.
Nisab for Gold and Silver
- Gold: 85 grams of pure 24K gold or 97 grams of 21K gold.
- Silver: 595 grams of pure silver.
Calculating Zakat on Gold and Silver
Multiply the total weight by the current market price, then calculate 2.5% of that value.
Zakat on Crops
Zakat on crops applies to whatever is harvested from the land, such as dates, wheat, rice, and raisins. It is due at harvest and does not require waiting a lunar year.
Nisab for Crops
The nisab is 5 wasqs, approximately 612–653 kg.
Amount of Zakat on Crops
- 10% if naturally irrigated by rain or rivers.
- 5% if irrigated using paid wells or pumps.
- 7.5% if a combination of natural and paid irrigation is used.
Zakat on Livestock
Zakat on livestock applies to camels, sheep, and cows that graze on pasture. They must reach the nisab and complete a lunar year. Animals used for plowing or work are not included.
Nisab for Livestock
- Camels: 5 heads and above.
- Cows: 30 heads and above.
- Sheep: 40 heads and above.
Zakat on Stocks and Investments
Zakat is obligatory at 2.5% on owned stocks if the company does not pay zakat.
Types of Stocks and Investments
- Trading stocks for buying and selling for profit – treated as commercial assets.
- Long-term investment stocks – zakat applies on the annual profit, not the stock value.
Conditions for Zakat on Stocks and Investments
- Reaching the nisab (85 grams of pure gold).
- Completion of a full lunar year.
How to Calculate Zakat
To calculate zakat on wealth, gold, or cash, follow these steps:
- Determine the nisab, equivalent to 85 grams of 24K gold or 595 grams of pure silver.
- Calculate the zakatable assets by summing all wealth, gold, and receivable debts.
- Deduct any outstanding debts.
- Calculate 2.5% (one-fortieth) if the nisab is reached and a full lunar year has passed.
Who Must Pay Zakat?
Zakat is obligatory for those who meet the following conditions:
- Muslim – zakat is not obligatory for non-Muslims.
- Reaching the nisab.
- Completion of a lunar year on the nisab.
- Full ownership and control of the wealth.
- Surplus wealth beyond the needs of oneself and family.
Who is Eligible to Receive Zakat?
The eligible categories as mentioned in Surah At-Tawbah in the Quran are:
- Poor who do not have enough.
- Needy who need assistance to fulfill their needs.
- Those employed to collect and distribute zakat.
- Those whose hearts are to be reconciled to Islam.
- Those in bondage or slaves.
- Those in debt who cannot repay.
- In the path of Allah – those striving for the cause of Allah.
- Travelers stranded far from home (ibn al-sabeel).
Zakat as a Source of Social Solidarity and Refugee Assistance
Zakat is the foremost way to achieve social solidarity as it redistributes wealth and reduces the burden on the poor by securing their basic needs.
It also strengthens human bonds, promotes love and harmony in society, and serves as a tool for social security and sustainable development.
Role of Zakat in Helping Refugees
Zakat plays a major role in helping refugees by providing food, clothing, shelter, and support during crises. There are legal fatwas for distributing zakat to refugees and displaced persons in urgent need of a decent life.
Associations such as Al-Wafaa Humanitarian Association distribute zakat efficiently to those in need wherever they are, thanks to their experienced and active teams.
Difference Between Zakat and Sadaqah
The difference can be summarized as follows:
| Comparison Aspect | Zakat | Sadaqah |
| Legal Status | Obligatory, a pillar of Islam | Voluntary, recommended act |
| Amount and Timing | Fixed nisab, due after lunar year | No set amount or time |
| Beneficiaries | The eight categories in the Quran (poor, needy, collectors, debtors, freeing captives, in the path of Allah, reconciled hearts, travelers) | Any needy person, including non-Muslims |
| Intention | Zakat | Purification of soul and wealth, expiation of sins |
| Effects | Fair distribution of wealth, social solidarity | Increases blessings, mercy, and sustenance |
Frequently Asked Questions
How Many Types of Zakat Are There?
There are two types: Zakat on wealth and Zakat al-Fitr.
What Are the Types of Zakat and Their Beneficiaries?
- Zakat on wealth, including cash, gold, silver, livestock, crops, minerals, and buried treasures.
- Zakat al-Fitr.
Beneficiaries: The eight categories mentioned in the Quran (poor, needy, collectors, debtors, freeing captives, reconciled hearts, travelers)
How Many Types of Zakat and What is the Difference?
Two types: Zakat on wealth (obligatory on money and assets) and Zakat al-Fitr (obligatory on individuals). Zakat on wealth is due after a full lunar year, while Zakat al-Fitr is due before the Eid prayer, preferably before sunset on the last day of Ramadan.
