--- title: "What is Zakat? The Third Pillar of Islam — Calculation" description: "Zakat is the obligatory annual payment of 2.5% of savings above the nisab threshold — one of the five pillars of Islam. Learn how to calculate your Zakat" url: https://globalprayertimes.org/blog/what-is-zakat/ source: Global Prayer Times --- # What is Zakat? The Third Pillar of Islam — Calculation Zakat is the obligatory annual payment of 2.5% of savings above the nisab threshold — one of the five pillars of Islam. Learn how to calculate your Zakat Islamic Knowledge · 13th May 2026 · 9 min read · Global Prayer Times What is Zakat? The Third Pillar of Islam — Calculation, Nisab & Who It Helps Zakat is the obligatory annual payment of 2.5% of savings above the nisab threshold — one of the five pillars of Islam. Learn how to calculate your Zakat, who receives it, and how it differs from Sadaqah. Quick Answer Zakat is the obligatory annual payment of 2.5% of savings above the nisab threshold — one of the five pillars of Islam. Learn how to calculate your Zakat, who receives it, and how it differs from Sadaqah. Zakat (الزكاة) is the third pillar of Islam — the obligatory annual payment of a fixed proportion of one's. — Global Prayer Times. Zakat (الزكاة) is the third pillar of Islam — the obligatory annual payment of a fixed proportion of one's qualifying wealth to those in need. The word Zakat comes from the Arabic roots meaning both 'purification' and 'growth': it purifies the wealth of the giver and causes spiritual and societal growth. The Qur'an mentions Zakat alongside Salah (prayer) over 30 times, emphasising that the two are inseparable expressions of faith. Take from their wealth a charity (Zakat) by which you purify and cause growth for them, and invoke Allah's blessings upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing. — Surah at-Tawbah (9:103) Who must pay Zakat? Zakat is obligatory upon every Muslim — male or female — who meets three conditions: (1) they are an adult (have reached puberty), (2) they are mentally sound (aqil), and (3) they possess nisab — the minimum amount of wealth above which Zakat is due — for a full lunar year (hawl). There is no Zakat obligation on those below the nisab threshold. What is the Nisab threshold? The nisab is the minimum amount of wealth a person must hold before Zakat becomes due. It is set at the equivalent of either 87.48 grams of gold or 612.36 grams of silver. Because the price of silver is lower, using the silver nisab is more inclusive and benefits more recipients — many UK scholars and charities use the silver nisab. The nisab in GBP changes with commodity prices; use an up-to-date Zakat calculator to find the current figure. How is Zakat calculated? Step 1: Calculate your total Zakatable assets — cash savings, gold, silver, business inventory, receivable debts, stocks and shares. Step 2: Subtract any immediate liabilities (debts due within the year, bills, rent due). Step 3: Check that the net figure equals or exceeds the nisab threshold. Step 4: If it does, and you have held this wealth for one lunar year (hawl), pay 2.5% of the total zakatable net wealth. Example: If your net Zakatable wealth is £10,000, your Zakat is £250. What is Zakatable wealth? Cash (in bank accounts or at home) above personal expenses. Gold and silver (including jewellery — disputed by schools; Hanafi school includes jewellery, Shafi'i excludes personal-use jewellery). Business stock and merchandise. Shares and investments (on the Zakatable proportion of company assets). Money owed to you that you expect to receive. Agricultural produce and livestock (each with specific rules). The eight categories of Zakat recipients The Qur'an defines the eight categories of those entitled to receive Zakat in Surah at-Tawbah (9:60): 1. Al-Fuqara — the poor (those with little or no income). 2. Al-Masakin — the destitute (even worse off than the poor). 3. Al-'Amilina 'alayha — the collectors and administrators of Zakat. 4. Al-Mu'allafatu qulubuhum — those whose hearts are being reconciled to Islam. 5. Fir-riqab — to free those in bondage (historically to free slaves; now applied to those in unjust captivity). 6. Al-Gharimun — those overwhelmed by debt, not due to frivolous spending. 7. Fi sabilillah — in the cause of Allah (widely interpreted to include Islamic education, dawah and humanitarian aid). 8. Ibn as-sabil — the stranded traveller with no means to return home. Zakat al-Fitr — the Zakat of Ramadan Zakat al-Fitr (also called Sadaqat al-Fitr) is a separate, smaller charity paid before Eid al-Fitr. It is obligatory on every Muslim who can afford it, on behalf of themselves and their dependants, and amounts to approximately £5–£7 per person in the UK (the equivalent of one sa' of staple food). It must be paid before the Eid prayer. Zakat al-Fitr is distinct from the main annual Zakat. What is the difference between Zakat and Sadaqah? Zakat: Obligatory (fard). Fixed rate: 2.5% of qualifying wealth above nisab. Paid annually. Recipients defined by Quran. Sadaqah: Voluntary charity. Any amount, given at any time. Can be given to anyone, Muslim or non-Muslim. Sadaqah Jariyah: Voluntary ongoing charity (a well, a school, a Quran printing) — the reward continues after death. Frequently asked questions about Zakat Can Zakat be given to non-Muslims? The majority of classical scholars hold that obligatory Zakat must be given to Muslims in the eight Qur'anic categories. Voluntary Sadaqah may be given to anyone, Muslim or non-Muslim. Some contemporary scholars permit giving Zakat in the 'fi sabilillah' category to benefit non-Muslims in interfaith or humanitarian contexts. Can Zakat be given to a mosque? Generally, Zakat cannot be given to build or maintain a mosque. The eight Qur'anic categories do not include mosque construction. However, if a mosque operates Zakat-eligible programmes (e.g., feeding the poor, supporting destitute families), those programmes can receive Zakat. Is Zakat due on a mortgage property? Your primary home is generally not Zakatable — you do not pay Zakat on the value of the house you live in. However, cash savings, rental income, and the equity in investment properties may attract Zakat depending on your scholar's guidance. Consult a qualified Islamic scholar for personalised calculation. Where should I pay my Zakat? Zakat must be paid to eligible recipients in one of the eight categories defined in the Quran (9:60) — the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, freeing captives, those in debt, in the cause of Allah, and the wayfarer. Pay through a registered charity you trust, or directly to eligible individuals in your community. Share: WhatsApp X Copy link More from the Knowledge Hub Islamic Knowledge Seerah of Prophet Muhammad ﷺ: The Complete Biography — Birth, Revelation, Hijra and Legacy 20 min read Islamic Knowledge What is the Quran? Islam's Holy Book — Revelation, Structure & How to Read It 10 min read Community Muslims on the Frontline: How British Muslims Showed Up During the COVID-19 Pandemic 7 min read Charity & Impact UK Muslims: Britain's Most Generous Faith Community — The Numbers Behind Muslim Charity 7 min read — Global Prayer Times. Source: https://globalprayertimes.org/blog/what-is-zakat/