Zakat is a yearly charitable payment that Muslims make on their wealth. This guide covers zakat on savings, gold and silver.
The rate
For cash, savings, gold, silver and trade goods, zakat is 2.5%, which is one quarter of one tenth.
The nisab
The nisab is the smallest amount of wealth on which zakat is due. According to UAE Awqaf:
- Gold: 85 grams
- Silver: 595 grams
- Cash and trade goods: the value of 85 grams of gold
Because it is tied to the gold price, the nisab changes every day. Use the price on the day you work out your zakat.
The lunar year
Zakat is due once your wealth has been at or above the nisab for one full lunar (Hijri) year.
What is counted
- Cash and bank savings
- Gold and silver
- Investments and goods you hold for sale
- Money owed to you that you expect to get back
Many scholars let you take off debts that are due soon.
A worked example
You hold AED 50,000 in savings. Gold is AED 500 a gram, so the nisab is 85 × 500 = AED 42,500. You are above it, so zakat is 2.5% of AED 50,000 = AED 1,250. Try it in the zakat calculator.
Where scholars differ
- Jewellery you wear. Some schools count it and some do not.
- Which debts to deduct. Opinions differ on long-term debts, such as a mortgage.
- Silver or gold nisab. Some scholars use the lower silver nisab for cash. UAE Awqaf uses gold.
This guide and the calculator are not religious rulings. Ask a scholar you trust about your own situation. UAE Awqaf also has its own zakat calculator and services.
Zakat calculator Add your savings and gold to see your zakat.Sources
This article is for education and is not financial, tax or legal advice. Figures are checked against the sources above and may change. Read the full disclaimer.