How to calculate your Zakat
Zakat is a means of purifying wealth and supporting those in need, making it a fundamental pillar of Islam. But how exactly do you calculate your Zakat? This guide will walk you through everything you need to know; from understanding Nisab, to working out what you owe, to who your Zakat helps. Donating through UK for UNHCR means your Zakat will support displaced families in Afghanistan, Syria and Lebanon.
What is Zakat?
Zakat is a form of charity that Muslims must give if they meet a certain wealth threshold. It is usually calculated as 2.5% of surplus wealth that has been held for a full lunar year. This does not include daily living expenses like rent, food or bills. Instead, it covers savings, gold, silver, investments and other financial assets.
We’ve made it quick and easy to calculate the Zakat you owe with our Zakat calculator, which is broken down into the individual financial assets you own.
What is Nisab?
Nisab is the minimum amount of wealth you must have before you are required to pay Zakat. If your total wealth is below this threshold, you do not have to pay Zakat.
What is the current Nisab value?
Nisab is based on the value of gold or silver. At the time of writing, these are:
– Gold Nisab: 87.48 grams of gold
– Silver Nisab: 612.36 grams of silver
Since the market value of gold and silver changes, you should check current rates before calculating your Zakat. We provide the latest Nisab values online for you to reference when making your Zakat calculation.
How is Zakat calculated in 2025?
To calculate your Zakat:
1. Add up your assets eligible for Zakat: cash in hand and in bank accounts, gold and silver (jewellery based on Nisab values), investments, shares and savings funds and business assets and money owed to you.
2. Deduct your liabilities: debts and loans that are due within the year, living expenses such as rent and utility bills
3. Check if your remaining wealth is above Nisab.
4. Multiply by 2.5% – this will give you the total amount of Zakat due.
If your wealth fluctuates throughout the year, the key is to assess what you own on your Zakat due date each year and use that calculation as a benchmark.
How is your Zakat used?
Zakat is designed to help those in need. It is used for:
– Supporting the poor and needy
– Assisting those in financial difficulty
– Helping new Muslims and those reconciling with faith
– Providing aid to those in debt
– Funding humanitarian and charitable causes
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Who receives your Zakat?
According to Islamic teachings, there are eight categories of people eligible to receive Zakat:
– The poor
– The needy (someone who is in difficulty)
– Those who work on administering or distributing it
– Those who have embraced Islam or are inclined to it
– To free those in bondage or slavery
– The debt-ridden
– For the cause of God
– The wayfarer (travellers)
In modern times, Zakat is primarily distributed to the first two categories – the poor and the needy.
At a time when funding for UNHCR’s work is under extreme pressure and needs are growing greater, UNHCR’s Refugee Zakat Fund provides a much-needed source of support for refugees in need. Those who wish to fulfil their Zakat-giving obligations can do so confidently by donating to UNHCR’s Refugee Zakat Fund, knowing that 100% of their Zakat will go to supporting vulnerable refugees and internally displaced families as cash or in-kind assistance.
Do I have to pay Zakat?
You need to pay Zakat if:
– You are an adult Muslim
– You are of sound mind
– You have owned wealth above the Nisab threshold for a full lunar year
If your finances are complex, seek guidance from an Islamic scholar or use an online Zakat calculator. Many Islamic organisations also offer online tools that can assist you with your calculations or provide support over the telephone where you can discuss your concerns or uncertainties.
When to pay Zakat
Zakat is due once a year, with many Muslims choosing to pay during Ramadan for extra blessings. You can also set a fixed date each lunar year based on when your wealth first exceeded Nisab and use this as your personal ‘deadline’ to pay your Zakat.
Zakat and Tax in the UK
In the UK, Zakat is separate from tax. While charitable donations can sometimes be tax-deductible, Zakat itself does not reduce your tax liability. However, you can donate to registered charities such as UK for UNHCR to benefit from tax relief.
FAQs about Zakat
Can I pay Zakat in installments?
Yes, as long as the full amount is paid within the lunar year.
Can I give Zakat to my relatives?
Yes, but not to immediate family members like parents, children or spouses.
Do I have to pay Zakat on gold jewellery?
Yes, based on the Nisab value.
Can I pay Zakat in advance?
Yes, you can pay in advance and adjust accordingly when your due date arrives.
What happens if I forget to pay Zakat?
You should pay it as soon as possible. If past years have been missed, estimate and pay accordingly.
Many displaced families will be forced to flee their country due to conflict and will end up observing the month of Ramadan far from home. Your Zakat could give these families the opportunity to continue their lives without having to sacrifice their health, education or safety during this difficult and challenging time.
Ways to donate with UNHCR
If you’d like to direct your Zakat towards humanitarian relief, consider donating it to UK for UNHCR to support refugees in need. Endorsed by scholars, UNHCR’s Refugee Zakat Fund operates a 100% donation policy which ensures 100% of what you give goes directly to displaced families in need.
Every Zakat contribution made through UK for UNHCR is handled with care, with:
– 100% going to displaced families
– distribution in line with Zakat categories
– funds held in a non-interest bearing account
Useful links
Use our Zakat Calculator >>
Born Connected campaign >>
Read UK for UNHCR refugee stories >>