Zakat is an obligatory charitable payment on Muslims whose qualifying wealth reaches the nisab (the minimum threshold) and remains in their ownership for one lunar year in most types of wealth.
It generally applies to cash, savings, gold and silver, trade goods, and certain livestock or agricultural produce. The basic rate for monetary wealth and trade goods is usually 2.5%. A person does not owe zakat on ordinary personal necessities such as a home they live in, clothing, furniture, or a vehicle used for personal needs. Zakat rules differ for agricultural produce, livestock, business assets, debts, and contemporary investments, so the exact calculation may require a qualified scholar. The Prophet’s zakat schedule includes thresholds for livestock and silver, including one-fortieth for qualifying silver wealth (Sahih Bukhari, Hadith 1454). Zakat is then given to eligible recipients such as the poor, the needy, and the other categories named in the Qur’an (9:60). For a complex case, ask a qualified local scholar.
