Gold and silver in whichever form they are in (jewellery, coins, ingots etc.) are all subject to Zakat.
Please note jewelry is not made from pure gold and silver. For example, 18 Karat gold jewelry contains 75% pure gold. So, an 18 Karat gold bracelet that weighs 20 grams has 15 grams (75% of the 20 grams) of pure gold, which is the weight of pure gold that the calculator will use.
Gold and silver in whichever form they are in (jewelry, coins, ingots, etc.) are all subject to Zakat.
You are obligated to pay zakat on your cash holdings that have been held or matured over the previous lunar year.
If interest has been earned against your cash holdings, then all gains from the interest should be donated to charity. Only the principal amount should be considered as zakat eligible.
Active Stock Investments: These are stocks purchased and sold within a year period. This category of investments should be treated like cash and 2.5% is owed on the overall retail value of the investment.
Passive Stock Investments: These are stocks purchased and held for longer than a year. Take the value of your holding amount and multiply it by 25% as a conservative estimate of the zakat eligible portion. If you own $1,000 of Apple shares in your portfolio, the zakat eligible portion of the investment is $1,000 X 25% = $250. The zakat due would be $250 X 2.5% = $6.25.
Dividends Exception: Dividends gained from stocks are also considered zakat eligible.
Cryptocurrencies: Crypto holdings should be treated like cash and subject to Zakat.
Zakat is applicable on additional contributions made by the member; this contribution includes salary sacrifice. Employer contributions are not subject to Zakat.
It is subject to Zakat but the obligation to pay Zakat thereon only arises upon receiving of the debts in question in which event, the Zakat of preceding years must also be paid on such debts.
If you are unsure whether the borrower will be able to pay back the loan, it is recommended to delay the zakat payment until you receive the loan. If you never receive the money back, no zakat is payable.
o There is no Zakat due on the house that a person owns and lives in or in the house that he or she owns.
o Using the property for business and trade – No Zakat is due on the property itself however there is Zakat due on business goods and profits from the business.
o Rental income: whatever is left over from your rental income on your Zakat date after any expenses, maintenance, mortgage and so on will join the rest of your cash balance and will be Zakaatable.
o If you "flip" properties or recently decided to sell or sold an investment property, then zakat is due on the property.
Do not enter the outstanding balance of your mortgage. Only enter what is "immediately due". This includes past due mortgage payments and any mortgage payments coming due within a month from your zakat due date.
If you have personal long-term loans from financial institutions such as student loans, they are treated similarly to mortgage payments. Only enter what is "immediately due". This includes past due loan payments and any loan payments coming due within a month from your zakat due date. If you owe money to friends and family and intend on paying them back within a short period of time, then enter the outstanding amount in this field.
For credit card balances which you intend to pay off within a month of your zakat due date, you can exclude the total amount you plan to pay off. For example: If you have $5,000 in credit card bills you plan to pay off during your next billing cycle, then you can include all $5,000 towards your personal liabilities. Recurring credit card balances: For recurring balances, only deduct what is past due or "immediately" owed. For example: If you have a credit card with a $10,000 recurring balance and you are paying $500 monthly towards this debt, you may only include $500 towards your personal liabilities.
When calculating your zakat eligible wealth, you may deduct essential living expenses including utility bills, food costs, insurance, car payment during the month of your zakat due date.
Enter all outstanding taxes or taxes coming due within a month of your zakat due date. Examples of taxes include vehicle property tax, home property tax, income tax, etc. Interest accrued against outstanding taxes are not zakat exempt and should be excluded from the total tax amount.
Monthly expenses such as Commercial loans that have been used to finance Zakatable assets, Rent, Utility bills, Salaries, Other bills
Enter the amount of cash in your bank accounts and cash on hand.
You are obligated to pay zakat on your cash investments that have matured over the previous lunar year.
If you have earnt interest from your cash investments, then all gains from the interest should be donated to charity. Only the principal amount should be considered as zakat eligible.
Include the value of the raw materials based on the price you paid.
This includes real estate or land purchased with the intention of resale.
Merchandise or stock is eligible for Zakat based on the wholesale value of the stock.
Facilities, equipment and other assets that are considered business essentials are zakat exempt.
This is money that is owed to your business (cash, stock, and goods receivables). Enter the total value of your cash, stock, and goods receivables. *Note Money that is owed to your business for services you conducted are not eligible for Zakat and should not be added.
Nisaab value as at 26/09/23
Nisaab is the minimum threshold whereby you are obligated to pay zakat. The Nisaab was set by Prophet Muhammad (SAW) at a rate equivalent to 87.48 grams of gold and 612.36 grams of silver. This calculator references silver nisaab which is 21 ounces of silver.