Zakat

Zakat is the third pillar of Islam and one of its most important financial obligations. The word zakat comes from the Arabic root meaning both purification and growth — it purifies the remaining wealth and brings blessing to what is given. Allah Most High says: "Take from their wealth a charity by which you purify them and cause them increase" (al-Tawbah 9:103). The Prophet, peace be upon him, listed zakat as one of the five pillars upon which Islam is built.

General Conditions for Zakat: Zakat is obligatory upon every Muslim who: has reached puberty (the Hanbali school requires puberty and sanity, though some scholars require only ownership); possesses wealth that has reached the nisab (minimum threshold); has owned this wealth for a full lunar year (hawl), with the exception of agricultural produce and minerals which are due at the time of harvest or extraction; and the wealth is not subject to outstanding debt that would reduce it below the nisab.

Zakat on Gold and Silver: The nisab for gold is twenty mithqal, equivalent to approximately 85 grams of pure gold. The nisab for silver is two hundred dirhams, equivalent to approximately 595 grams of pure silver. The rate of zakat on both is one-quarter of a tenth (2.5%). Paper currency is evaluated against the silver or gold standard, and scholars differ on which to use. Many contemporary scholars recommend using the silver nisab as it is lower and more inclusive, ensuring more people fulfill their obligation.

Zakat on Livestock: Zakat is obligatory on camels, cattle, and sheep/goats when they are freely grazing (sa'imah) for the majority of the year and not used as work animals. For camels: five camels are the nisab, with a complex graduated scale above that. For cattle: thirty head is the nisab, with specific animals prescribed at each level. For sheep and goats: forty is the nisab, at which one sheep is due; the scale increases with prescribed rates at 121, 201, and above 400 animals.

Zakat on Agricultural Produce: Zakat on crops and fruits is due at harvest without requiring a hawl. The nisab is five wasqs, approximately 653 kilograms. The rate is one-tenth (10%) for rain-watered crops and one-twentieth (5%) for irrigated crops. Zakat applies to staple crops that can be stored, including wheat, barley, dates, and raisins, according to the Hanbali school's stricter view — though some scholars extend it to all crops of significant value.

Zakat on Trade Goods (Urud al-Tijarah): Merchandise held for trade is subject to zakat when it reaches the nisab and a full year has passed. The value is estimated at the end of the hawl and 2.5% is given. This applies to all categories of goods held with commercial intent.

The Eight Categories of Zakat Recipients: Allah Most High specifies the recipients in the Quran: "Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler" (al-Tawbah 9:60).