Is zakat due on my monthly salary?

Not simply on receiving it. Zakat is due on what remains, once it reaches the nisab and a full lunar year passes over it.

Can I deduct my whole mortgage?

Most contemporary fiqh councils allow only this year's instalment to be deducted, not the entire loan, otherwise zakat would fall away from many wealthy people.

Should the nisab be gold or silver?

Both views are valid: 85 grams of gold or 595 grams of silver. Silver gives a lower threshold, so zakat is due on smaller wealth, which many institutions prefer.

Do I pay zakat on money I lent out?

Yes if repayment is expected, because it is still your wealth. A debt unlikely to be repaid carries no zakat until you receive it.

How is zakat paid on shares?

Shares held for trading are valued in full at market price. For long-term investments, scholars differ between the zakatable share of company assets and the dividend received.

Islamic tools

Money Zakat Calculator

Work out zakat on cash, bank balances, savings, money you have lent out and investment holdings, minus the debts you owe, with the nisab set by gold or by silver.

Currency

Nisab basis

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Cash in hand

Bank account balances

Savings and deposits

Money lent out and expected back

Shares and funds held for investment

Debts you owe and will repay soon

Zakat on money: what enters the calculation and what does not

Zakat on money is not a tax on salary. It is a due on wealth you own that has reached the nisab and been held for a full lunar year. A salary received and spent carries no zakat; savings that sat with you for a lunar year and reached the threshold carry a quarter of a tenth, that is 2.5%.

What is included

Cash in hand and current or savings account balances.
Deposits, savings and liquid investment portfolios.
Money you lent to others and expect back, since it remains your property.
Shares and funds bought for trading or investment, valued at market price.

What is excluded

The home you live in, your car, household furniture and the tools of your trade, none of which is growing wealth.
Debts you owe and will settle soon, deducted from the total by most contemporary scholars.
For long-term finance, most fiqh councils deduct only this year's instalment rather than the whole mortgage.
Bad debts with no realistic prospect of repayment, until they are actually received.

Gold nisab or silver nisab

For money the threshold equals the value of 85 grams of gold or 595 grams of silver. The two have diverged sharply in modern times, so the silver threshold is far lower. Choosing silver widens who must pay and benefits the poor, which is why many institutions adopt it; choosing gold tracks a more stable store of value. The calculator supports both and shows the difference immediately.

The lunar year

The year starts the day your wealth reaches the nisab. The balance need not stay constant: the majority look at the threshold at the start and end of the year. Money of the same kind arriving mid-year is added to the same cycle rather than tracked separately, as a concession. Use the Hijri calendar to fix your zakat date, and if your wealth is in gold use the gold zakat calculator.

Frequently asked questions