The threshold
| Standard | Weight | What it means |
|---|---|---|
| Gold nisab | 87.48 g (20 mithqal) | Higher threshold; fewer people are liable |
| Silver nisab | 612.36 g (200 dirhams) | Lower threshold; more people are liable |
The two were roughly equal in value when they were set. They are not today, which is why the choice matters. The common contemporary advice is to use silver, since the lower threshold means more zakat is paid and more people receive it.
What counts
| Included | Excluded |
|---|---|
| Cash, current and savings accounts | Your home, and the car you drive |
| Gold and silver, including jewellery in most positions | Household furniture and clothing |
| Shares held to trade, at market value | Tools and machinery used in your trade |
| Business stock at resale value | Long-term pension you cannot access |
| Money lent that you expect back | A loan you never expect to recover |
| Rental income held as savings | The rental property itself |
A worked example
Take someone with 4,000 in cash, 1,500 in a savings account, gold jewellery worth 2,000, and a credit-card balance of 500 due this month. Their zakatable wealth is 4,000 + 1,500 + 2,000 = 7,500, minus the 500 debt, leaving 7,000. If nisab on the silver standard is, say, 600 in their currency, they are above it. Zakat due is 2.5% of 7,000, which is 175.
- Fix a date in the Hijri calendar — the day your wealth first passed nisab — and use it every year.
- On that date, total everything in the 'included' column at its current value.
- Subtract debts that are due now. Long-term debts such as a mortgage are generally deducted only to the extent of the coming year's payments.
- Compare the result with the nisab value on that day.
- If above, multiply by 0.025. That is what you owe.
Because the Hijri year is about eleven days shorter than the Gregorian one, a fixed Gregorian date drifts and will eventually skip a year. Anchoring the date in the Hijri calendar avoids that.
Who receives it
The Qur'an names eight categories: the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, freeing captives, those in debt, in the way of God, and the traveller in need. Zakat is not given to one's own parents, children or spouse, since supporting them is already an obligation.