Types of Zakat and their thresholds

Zakat is one of the most beautiful spiritual acts of worship that purifies the soul and strengthens social solidarity. It is a means to achieve societal balance and economic closeness among social classes. Is there anything more rewarding than the reward a person receives by giving zakat to someone in dire need, as Allah elevates their status and ranks in Paradise?

Therefore, in this article, we will explore together the types of zakat, the zakat nisab, and how to donate money as zakat to the needy through the trusted Al-Wafa Association.

What is Zakat?

Zakat is a financial act of worship mandated on the wealth of Muslims that has completed a lunar year and reached the nisab. It is one of the greatest acts of worship as the third pillar of Islam, and it is usually given to deserving categories such as the poor, needy, and other groups mentioned in the Quran, aiming to improve their conditions, achieve social solidarity, and purify and grow the wealth of Muslims.

Zakat Linguistically

Linguistically, zakat means increase and growth as it contributes to the increase of wealth's blessing and also signifies purification due to its profound effect on purifying wealth and the soul.

Types of Zakat

In Islam, zakat has several types, all of which carry multiplied rewards for the giver. Among its types:

Zakat on Gold and Silver

Zakat on gold and silver is obligatory for Muslims if it reaches the Islamic nisab and a full lunar year passes. This includes coins, bars, and jewelry intended for investment, not personal adornment.

• Nisab of gold is 85 grams of pure 24-karat gold, while 21-karat gold nisab is 97 grams.
• Nisab of silver is 595 grams of pure silver prepared for investment.
• Zakat is calculated at 2.5% of the weight of gold or silver, or 2.5% of its market value if paid in cash.
• It is permissible to combine gold and silver with cash. If the value reaches the nisab, zakat becomes obligatory.

Zakat on Livestock

Livestock refers to sheep, cattle, and camels. Zakat on livestock is obligatory for Muslims if the following conditions are met:

• The animals reach the Islamic nisab: 5 for camels, 40 for sheep, 30 for cattle, and a full lunar year passes.
• The livestock must graze naturally, not be fed with fodder.
• The animals should not be used for personal purposes like plowing or riding.

Zakat Amount for Livestock

• Camels: 5 to 9 → 1 sheep
• 10 to 14 → 2 sheep
• 15 to 19 → 3 sheep
• 20 to 24 → 4 sheep
• 25 to 35 → a young she-camel
• 36 to 45 → a she-camel in milk
• 46 to 60 → 1 she-camel (haqqah)

Zakat on Sheep:

• 40 to 120 → 1 sheep
• 121 to 200 → 2 sheep
• 201 to 300 → 3 sheep
• Over 300 → 1 sheep for each 100

Zakat on Cattle:

• 30 to 39 → 1 young cow (tabi')
• 40 to 59 → 1 mature cow (musinnah)
• 60 → 2 cows

Zakat on Produce from the Earth

This refers to zakat on crops and fruits. It is obligatory if it reaches the nisab of 5 wasqs, approximately 653 kg of fruits and grains suitable for storage. It is given at harvest time and the amount depends on the irrigation method.

Zakat Amount for Crops and Fruits

• 10% of the harvest if irrigated naturally by rain or rivers without cost.
• 5% if irrigation requires costly pumps or machinery.
• 7.5% if a combination of natural and artificial irrigation.
• For leased land, zakat is 2.5% of the rent after a year if it reaches nisab.

Zakat is due after harvest, as stated in the Quran: "And give its due [zakah] on the day of harvest." The produce must be cleaned and dried before calculation.

Zakat on Trade

Zakat on trade is obligatory after reaching the nisab equivalent to 85 grams of gold or 595 grams of silver for a full lunar year. It applies to goods prepared for profit and sale.

Zakat Amount on Trade

The amount is 2.5% (a quarter of one-tenth) of the market value of goods at the time of zakat payment.

Calculating Zakat on Trade

First, determine the zakatable wealth: current market value of goods + available cash + expected receivables. Then multiply by 2.5% or divide by 40.

Zakat al-Fitr

Zakat al-Fitr is obligatory for every Muslim who can provide for their daily sustenance, regardless of age or gender.

Time for Zakat al-Fitr

It is given at sunset on the last day of Ramadan and preferably before Eid prayer.

Amount of Zakat al-Fitr

One sa' of staple food like wheat, rice, or dates, approximately 2.5 to 3 kg. It can also be given in cash if it benefits the poor.

Zakat al-Fitr is given to the poor and needy, not to those obligated for financial support like spouses or children.

Zakat Nisab

Nisab is the minimum wealth a Muslim must own, provided a full lunar year passes. It can be gold, silver, or currency, and zakat is 2.5% of total wealth:

• Gold nisab: 85 grams of pure 24-karat gold
• Silver nisab: 595 grams of pure silver
• Currency nisab: calculate by multiplying 85 grams of 24-karat gold price

Conditions of Zakat

Conditions to perform zakat correctly include:

• Reaching the nisab.
• A full lunar year passes over the wealth.
• Ownership of the wealth with freedom of disposition and growth potential.
• The wealth should be free from debts and exceed the essential needs of the owner and family.

Zakat Recipients - Donate Your Zakat to the Needy

There are eight categories of zakat recipients mentioned in the Quran: "Zakat expenditures are only for the poor and the needy, for those employed to collect it, for those whose hearts are to be reconciled, for freeing captives, for those in debt, for the cause of Allah, and for the stranded traveler."

• The poor: those without sufficient daily sustenance.
• The needy: those lacking daily requirements.
• Those employed to collect and distribute zakat.
• Those whose hearts are to be reconciled.
• For freeing captives.
• Debtors: those in debt.
• For the cause of Allah: volunteers in charitable works.
• The stranded traveler: those unable to return home due to financial constraints.

Donate Zakat to the Needy via Al-Wafa Association

You can donate your zakat through Al-Wafa Humanitarian Association, which ensures fair distribution to deserving recipients. The association has an experienced team and allows online donations, ensuring your zakat reaches the needy while granting you spiritual reward.

FAQ

What types of wealth are subject to zakat?

Wealth types subject to zakat include gold, silver, currency, trade goods, livestock, and crops from the earth.

Which type of zakat does not require nisab?

Zakat al-Fitr does not require nisab; it only requires that the Muslim exceeds their daily sustenance.

Can zakat be given to someone with a salary?

Yes, if their salary is insufficient to cover daily needs and basic requirements at home.

Is zakat obligatory on someone with no work?

No, zakat is obligatory on wealth. Someone with no income has no zakatable wealth.

What types of wealth are exempt from zakat?

Wealth below nisab, waqf funds, and money reserved for essential needs like food, shelter, and clothing are exempt from zakat.