Zakat<\/i> (\u2018zakat al-ma<\/i>l\u2019) is the third pillar of Islam. More than just a compulsory tax on wealth, it is a form of worship mentioned together with salah <\/i>(prayer) 28 times in the Quran.<\/p>\n
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It involves Muslims giving 2.5% of their wealth annually towards certain charitable causes.<\/p>\n
This is not to be confused with z<\/i>akat <\/i>a<\/i>l-<\/i>f<\/i>itr<\/i>, which is a duty paid during Ramadan. Zakat al-<\/i>f<\/i>itr <\/i>is paid by everyone who can afford it (and the family head pays it on behalf of all dependants).<\/p>\n
To find out the rate of zakat al-<\/i>f<\/i>itr <\/i>and make the donation, contact your local mosque before Eid al-<\/i>f<\/i>itr<\/i>.<\/p>\nHow to calculate Zakat<\/h3>\n
If you need to calculate your zakat you should check out our comprehensive zakat calculator<\/a>.<\/p>\n Zakat <\/i>translates to \u2018purification\u2019\/ \u2019growth\u2019. How is it that giving away part of our wealth purifies and grows it?<\/p>\n Zakat <\/i>helps Muslims achieve financial and spiritual reform in this act of self-discipline by staving off greed and rebalancing focus.<\/p>\n Zakat <\/i>involves all able Muslims in the health of the community: a reminder that achieving prosperity, harmony and justice across the U<\/i>mmah <\/i>is something each and every Muslim is involved in.<\/p>\n Muslims are responsible for using the wealth they have for good as they seek to increase it. Ultimately, wealth is a trust from Allah so it should not be hoarded or obsessed over.<\/p>\n In the Quran we are told:<\/p>\n Zakat <\/i>is due on the day one\u2019s personal wealth (possessions minus debts\/expenses) exceeds the nisab <\/i>threshold<\/a> and every lunar anniversary of that date thereafter (except if one\u2019s wealth falls below the threshold).<\/p>\n Some choose to give their zakat <\/i>before their zakat <\/i>anniversary (e.g. during Ramadan due to its bountiful reward).<\/p>\n There are two nisab <\/i>thresholds: gold and silver. These come from the two currencies in use during the Prophet (peace be upon him)\u2019s time. Many scholars hold that the silver n<\/i>isab <\/i>is the benchmark we should use, especially if we have mixed assets (as opposed to purely gold assets).<\/p>\n You can work out your zakat <\/i>liability with this handy calculator<\/a> we\u2019ve created.<\/p>\n Missed zakat<\/em> is a debt that must be settled in order to restore barakah in your wealth. Here is a helpful guide<\/a> on missed zakat<\/em>.<\/p>\n Zakat <\/i>can be distributed in aid of:<\/p>\n It may be thought that zakat <\/i>should be given abroad as there aren\u2019t needy people in one\u2019s local community. However this should not be taken to an extreme \u2013 there are needy Muslims that are supported by z<\/i>akat <\/i>in the UK, and their number is increasing (half of Muslim households in the UK live in deprivation). The National Zakat Foundation is working hard to establish a system for Zakat <\/i>in the UK \u2013 check out their work here<\/a>.<\/p>\n This article is part of the Islamic Finance Definitions Series<\/a>.<\/p>\n https:\/\/www.islamicfinanceguru.com\/zakat<\/a><\/p>\n https:\/\/nzf.org.uk\/knowledge\/zakat-in-quran\/<\/a><\/p>\nSpiritual benefits of zakat and religious significance<\/h2>\n
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Who is required to give zakat<\/i>?<\/h2>\n
Who can receive zakat<\/i>?<\/h2>\n
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Further resources<\/h3>\n