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Learn about one of the five pillars of Islam
Zakat is one of the five pillars of Islam, a form of obligatory charity that purifies wealth. Allah says in the Quran: "And establish prayer and give zakat, and whatever good you put forward for yourselves - you will find it with Allah." (2:110)
Nisab is the minimum wealth threshold for zakat eligibility. There are two separate nisab values because they were established at different historical periods:
Let's see how the dual nisab system works with a real example:
Why Use the Lower Value? Islamic scholars choose the lower threshold (typically silver) to make zakat more accessible. This ensures that people with moderate wealth can still participate in this act of worship and purification, following the principle of ease in Islamic law.
Zakat applies to various forms of wealth including:
The following assets are NOT subject to zakat:
The standard rate of zakat is 2.5% of your net zakatable wealth, to be paid annually. The Prophet (peace be upon him) said: "In every forty dirhams of silver, there is one dirham."
Zakat is calculated on net wealth (total assets minus liabilities) that has been in your possession for one complete lunar year.
A crucial condition for zakat is the completion of Hawl - one full lunar year of wealth ownership:
Calculate your zakat obligation accurately