Calculating and

Paying Zakat

Assets on which Zakat is due

  • Cash and bank balance and accumulated profit it may fetch in a year
  • Gold & silver coins
  • Jewelry that is not worn “regularly” or is purchased with the intention of investing in gold.

Assets on which Zakat is not due

  • Articles of personal use (for example a house one lives in, car, household items or jewelry that is “regularly” worn). Fiqah Ahmadiyya Volume 1, page 361
  • Assets that are used for income generation (such as a business, its property, equipment etc.) (Fiqah Ahmadiyya, Vol 1, pp 361.)

  • The Promised Messiah (as) stated: “On property that is suspended, Zakat is not necessary, until it comes in your possession. A trader should not make plans to avoid Zakat because in the end he himself pays for his expenditures with this property. One should make Allah happy by keeping an eye on his current and suspending property. Some make plans and excuses will Allah as well, this is not correct.” (Fiqah Ahmadiyya, Vol 1, pp 367.)

  • Money or assets that would normally come under zakat but are beyond one’s access for the year (for example money given as a loan given to someone, or a retirement account before retirement). Once the asset is accessible again, zakat would be due on it.

Nisaab is that threshold of assets held in possession for a year above which Zakat is due on that asset. If someone did not hold assets above the Nisaab for one year then no Zakat is due.


In Islam, Nisaab was originally defined in terms of gold coins (dinars) and silver coins (dirhams), and the exchange rate between them was 1:10 during the time of the Holy Prophet (peace be upon him). The Nisaab was set to 20 dinars or 200 dirhams. 


In modern times, these coins are no longer in circulation, and the value of gold and silver by weight has drifted apart. Generally speaking, the weight of gold and silver is now used to calculate Nisaab. Current Nisaab (threshold over which Zakat is due) is around $5000 (price of 87 grams of gold). 


This information is being shared as a broad guideline. Please consult your local missionary for any specific questions that may apply in your case.


If one has multiple assets, and the value of each individual asset is below the Nisaab, then Zakat is not due on them, even though their collective value may be higher than the Nisaab. However, the Holy Prophet (peace be upon him) has also warned against deliberately breaking up an asset to avoid paying Zakat. Allah is the judge of all intentions. (Fiqah Ahmadiyya, Vol 1, pp 366.)

The rate of Zakat is one-fortieth (1/40) or 2.5% of the assets on which Zakat is due, provided they are worth more than the Nisaab. If the assets are worth less than the Nisaab, then no Zakat is due. 


As in all worship, Taqwa is the root of all good. We suggest reading the book "The Philosophy of Zakat" and do your best judgement

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