LAST UPDATED: October 2026
What is Zakat?
Zakat, or almsgiving, is one of the five pillars of Islam, along with prayer, fasting, pilgrimage (Hajj) and belief in Allah (SWT) and His Messenger, Prophet Muhammad (PBUH).
Zakat is a form of obligatory charity. For every sane, adult Muslim who owns growing wealth (wealth that has a potential to increase) over a certain amount, known as the nisab, he or she must pay 2.5% of that wealth as Zakat if that level has been in one’s possession for a lunar year.
Zakat’s meaning in Islam is ‘to cleanse.’ Muslims believe that paying Zakat purifies, increases, and blesses the remainder of their wealth.
How much is Zakat?
Your Zakat donation should amount to 2.5% of your total zakatable wealth.
Use our free and easy Zakat Calculator to calculate how much you owe.
Calculate your Zakat→What is Nisab?
The nisab is the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat. This amount is often referred to as the nisab threshold.
Gold and silver are the two values used to calculate the nisab threshold. The nisab is the value of 87.48 grams of gold or 612.36 grams of silver.
Learn about nisab→Nisab as of October 8, 2026. Both values are approximate.
Zakat eligibility
You might be asking, who is eligible to pay Zakat? Zakat is an obligation for every sane, adult Muslim who owns wealth over a certain amount, known as the nisab. He or she must pay 2.5% of that wealth as Zakat for that one full lunar year.
If you’re unsure whether you’re eligible, don’t worry. We have in-house scholars who would be happy to help. You can reach them at 1 855-377-4673. Our scholar will do their best to contact you within 72 hours to help with your inquiry.
Zakat resources
Your Zakat saves lives
You have the power to transform people’s lives. Give your Zakat today!
How Islamic Relief spends Zakat
Your Zakat has funded some of our crucial work with people and communities living in disaster and war zones: drought and famine-struck countries across East Africa, communities affected by earthquakes in Turkiye and Syria, and our brothers and sisters in Gaza.
We strive to ensure that your Zakat empowers the individuals and families who receive it, ultimately contributing to bringing them out of the difficult circumstances they are in. We ensure your Zakat reaches the hands of those who need it most, providing rights-holders with the tools to support themselves and pass it on to the next generation.
This means your donations help generations of families access food, medical care, clean water, and education in a dignified manner for years to come.
Your Zakat in trusted hands
Your Zakat is an Amanah, and we take that trust very seriously. At Islamic Relief Canada, we follow a scholar-verified Zakat Policy to ensure your Zakat reaches as many poor and needy people as possible to transform their lives.
This ensures that Islamic principles are adhered to every step of the way, from project design and community fundraising discussions to project implementation. Your Zakat is in trusted hands.
Zakat FAQs
Please note that for any specific queries, it is advisable to contact your local imam. You can also call our office at 1 855-377-4673.
During Ramadan, Islamic Relief Canada has a scholar available to issue specific guidance. You can use our Zakat Calculator to calculate how much you need to give.
About Zakat
What is Zakat?
Zakat is one of the five pillars of Islam. It is a compulsory donation to charity by all Muslims who reach the minimum threshold for payment.
How much is Zakat?
Zakat is 2.5% of your total wealth. Therefore if you have $10,000 of wealth liable to Zakat, you would pay $250.
Why is Zakat 2.5%?
The Qur'an commands Muslims to give zakat and describes who can receive it, but it does not specify the percentage. The rate of 2.5% comes from the teachings and practice of the Prophet Muhammad ﷺ (the Sunnah), and has been the scholarly consensus for centuries for savings and monetary wealth held for one lunar year. Other types of wealth, such as agricultural produce or livestock, have different zakat rates, which is why you may come across percentages other than 2.5%.
What is Nisab?
Nisab is the minimum amount that a Muslim must have before being obliged to Zakat. The Nisab was set by Prophet Muhammad (SAW) at a rate equivalent to: 87.48 grams of gold or 612.36 grams of silver.
To know more about how to calculate the equivalent monetary value into your local currency, and which Nisab threshold to use (gold or silver), please read more here!
What is Hawl, and should it be based on lunar or solar years?
Hawl is the length of time that an individual must possess the wealth that they will pay Zakat on. In explanations of Zakat, Hawl means a lunar year and therefore, a hawl (lunar year) is approximately 354 days long.
The Zakat percentage remains 2.5% of eligible assets when calculated based on the lunar (Hijri) year. However, since the lunar year is 354 days, about 11 days shorter than the 365-day solar year, there is a slight adjustment to the Zakat percentage if using the Gregorian calendar to mark your annual Zakat term.
- Lunar Year (Hijri) Zakat percentage: 2.5%: this is the standard percentage used in traditional Zakat calculations.
- Solar Year (Gregorian) Zakat percentage: 2.577%: since the Gregorian year is longer, the equivalent percentage is slightly higher to maintain the same annual contribution.
If you are calculating Zakat based on the Gregorian year, you should use 2.577% instead of 2.5% to ensure an equivalent contribution over time. While this method is allowed by scholars, most scholars recommend using the Hijri calendar for Zakat calculations.
Who is eligible to receive Zakat?
There are eight categories of people who are eligible to receive Zakat:
- The poor
- The needy
- Administrators of Zakat
- Those whose hearts have been recently reconciled
- Those who have been enslaved
- Those in debt
- In the cause of God
- Travellers (including refugees)
Does the non-Muslim have to pay Zakat?
No, Zakat is only prescribed for Muslims.
What is Zakat al mal?
Zakat al mal means zakat on wealth, which we commonly shorten to just Zakat.
Miscellaneous questions
I normally give a lot of money in charity throughout the year, do I still have to pay Zakat?
You must pay Zakat with the intention of paying it. It is important that you make an intention to give a donation as a Zakat payment.
I paid Zakat on $4,000 last Ramadan. This year I have a total of $10,000 of wealth liable to Zakat. What value do I take the 2.5% from as I paid for the $4,000 last year?
Zakat is to be paid on the total savings regardless of what was paid on it in the past. Therefore, you would pay 2.5% of $10,000 = $250.
I owe several years of Zakat, how do I pay?
For every year that you owe Zakat, take 2.5% from the total wealth you had at the end of that year and pay that in Zakat. If you are not sure how much wealth you had, you must estimate it to the best of your ability. E.g. It is now Ramadan 2025. You have not paid Zakat for the last 5 years. You need to work out how much wealth you owned every Ramadan for the last 5 years and pay 2.5% of that.
If a child’s wealth has satisfied all the conditions of Zakat (i.e. it is above the Nisab and has been in their possession for one year), should Zakat be paid on it?
The majority of the scholars from the past favoured the opinion that it should be paid. This is the same for both the child and the insane person. Therefore, their guardian should take the Zakat from the person’s wealth and pay it on their behalf. However, some opinion suggest that it is not due on children and insane people, so please discuss with a scholar.
I have mixed jewellery consisting of gold, silver and precious stones. How do I calculate the value on which Zakat must be paid?
The best way for you to do this would be to take the jewellery to a jeweller and ask them to value just the gold and silver parts of the jewellery. The valuations they give will be the total on which you have to pay Zakat. Precious stones are not liable for Zakat.
I have savings which I shall use to go for Hajj, is this to be included in my wealth when calculating Zakat?
Yes, it must be included.
Business, property and debt
I lent some money to a friend who informed me that s/he is able to return the money; do I have to include this in my wealth when calculating Zakat?
Yes, as it is as if s/he is just storing your money.
10 years ago I lent some money to a friend who is poor and I did not expect to get the money back. S/he has now paid me back, is this money liable for Zakat?
If the money is paid back, then it is liable for Zakat (provided the lender meet other criteria for paying Zakat). However, if the money is not paid back, then the intention for lending would need to be reviewed. If the lender was fairly sure that s/he was not going to receive it back and s/he is unable to refer it to a judiciary, then in such cases Zakat is usually not payable. However, there are many variables and hence this question should be referred to a scholar.
My Zakat is due in dhul-Qa’dah but I would like to pay in advance (in Ramadan). I have a debt which must be paid in Shawwal (after Ramadan). Can this be deducted from my wealth when calculating Zakat?
The general answer would be yes, however we would strongly urge you to consult a scholar about this.
I bought a house for the purpose of renting 5 years ago. Last year I decided that I would sell the house. How do I pay Zakat on this?
For the time that you were renting the house out and did not have the intention of selling, you do not pay Zakat on the house. But you would still have to pay Zakat on the rent you earned just like any other wealth you have. You must pay Zakat after one lunar year from the day you made the intention to sell the house. You must also pay zakat on the selling price of the house. However, if you are paying in advance, you would need to estimate this. You would need to do the same for every year after that in which the house is still for sale. But to be absolutely clear, please discuss this with a scholar.
I have a shop where I sell clothes. How do I pay Zakat?
Every year at the time of paying Zakat, you would need to calculate the total selling price for all the goods for sale in your shop. E.g. All the clothes for sale in your shop add up to a total selling value of a particular sum of money. You would add this to your other wealth when calculating your total payment.
Beneficiaries of Zakat
What is the definition of the poor and needy?
The Fuqara & the Masakin. Fuqara are those that do not own wealth to the amount of Nisab. Masakin are those who do not have food for the day (15 to 20% of the world).
How do you assess whether someone is poor and needy?
We have delivery offices in the countries in which we work and they carry out assessments, using selection criteria, because we want to ensure that we are reaching the most vulnerable people.
Can I give Zakat to my family members?
It can only be given to people from one of those eight categories. Most scholars agree that you can give zakat to a family member if they're from one of the categories. E.g. they are poor and unable to provide for themselves, and is not already dependent on you. But if he/she is one of your dependents, you are obliged to spend on them anyway and cannot give them anything from your Zakat.
Can I use my Zakat to sponsor an orphan?
If the orphan is eligible to receive zakat (E.g. they or their family own less than the nisab or do not have food for the day) then they will be eligible to receive it. Orphans would come under category 1 and 2 recipients of Zakat.
What kind of projects do Zakat funds support?
Islamic Relief Canada spends Zakat on projects where there is clear ownership of the aid to reduce poverty and hardship in disadvantaged communities, and where we can guarantee that the recipients are poor and needy and directly receive the assistance. So, for example, we can provide food packs to destitute people so they can feed themselves and their families; or livelihood assets, tools and support for families to develop their own business and make a sustainable income.
It is also permissible to fund communal welfare assets and programs, such as clean water sources, health clinics, critical medical equipment, temporary food producing outlets (e.g., bakeries), water containers, schools, training centres, seed banks, communal farmlands, water dams, etc. to reduce poverty and hardship in disadvantaged communities. Projects involving communal welfare are funded on the condition that the community is empowered through ownership of the asset.