Zakat, in general, is one of the most important obligations that must be fulfilled by those eligible to pay it, due to its positive impacts on religious and psychological levels, as well as being a source of blessing in wealth and sustenance, and purifying the soul from miserliness and stinginess. God Almighty says: “Establish prayer and give zakat, and obey the Messenger that you may receive mercy.” This verse is evidence of the ruling on zakat being obligatory.
Today’s article focuses on the zakat on gold due to its significance in our noble religion, its quantum, nisab (minimum amount liable for zakat), how to calculate it, its conditions, and how to dispense it, concluding with some common questions on this topic.
Information about the ruling on Zakat on Gold
What is Zakat on Gold?
Zakat on gold falls under the category of monetary zakat because gold and silver were historically used in financial transactions. Gold was used for savings and also as adornment, thus making it subject to zakat. Not paying zakat on it is considered hoarding wealth.
As narrated in Sahih Muslim, the Prophet Muhammad (peace be upon him) said: “There is no owner of gold and silver that does not pay what is due on them, except that plates of fire will be prepared for him on the Day of Resurrection so that his sides, his forehead, and his back are branded with them. Whenever these cool down, they are reheated for him on a day that lasts fifty thousand years, until he sees his path, either to Paradise or to Hell.”
Is Zakat on Gold Obligatory?
Zakat on gold is obligatory, following the verse: “And those who hoard gold and silver and spend it not in the way of Allah – give them tidings of a painful punishment.” Hoarding here refers to not paying zakat on gold, i.e., any gold reaching the nisab without its zakat being paid is considered hoarding, threatened with punishment.
Ruling and Punishment for Not Paying Zakat on Gold
Legally, withholding zakat and denying it to its rightful recipients is not permissible. God Almighty says about those who withhold zakat: “And those who hoard up gold and silver and spend it not in the way of Allah, announce unto them a most grievous penalty. On the day when it will be heated in the fire of Hell and with it will be branded their foreheads, their flanks, and their backs. ‘This is the treasure which you hoarded for yourselves: taste then the treasure you hoarded!’”
Conditions for Zakat on Gold
The most important conditions mentioned in the Sunnah and the Qur’an for zakat on gold are:
- The gold must reach the nisab, which is approximately 85 grams of pure gold.
- A full lunar year must pass while owning it.
- The ownership of the gold must be complete, meaning one cannot dispose of what is not theirs.
- The owner must be free, not enslaved.
Nisab for Zakat on Gold
The nisab for zakat on gold is defined as 20 mithqals, equivalent to 85 grams of pure gold or more. Once the owned gold reaches the nisab, zakat becomes due at a rate of “one-quarter of a tenth,” i.e., 2.5% of the total gold grams.
How to Calculate Zakat on Gold
Zakat on gold is calculated by counting the pure gold grams. If one owns 85 grams or more, 2.5% of the total amount must be dispensed. For example, if you own 600 grams of gold, the calculation is as follows:
600 ÷ 40 = 15 grams, which is the amount of zakat required to be dispensed.
Who Receives Zakat on Gold ?
Zakat on gold is given to the eight categories mentioned in the noble verse: “The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarer; a duty imposed by Allah. Allah is All-Knowing, Wise.”
When is Zakat on Gold Due?
Zakat on gold becomes obligatory at the end of the lunar year from the date of owning the gold. If the gold reaches the nisab and does not decrease before the year is complete, zakat becomes due.
Masarat for Education and Empowerment in Syria
Masarat Initiative is among the most significant initiatives serving those affected by ongoing conflicts in Syria; it offers all its educational and knowledge-based services for free to its students.
Your support helps us spread knowledge to all our students, assisting them in achieving their goals and securing a better future.
Frequently Asked Questions about Zakat on Gold
On which purity of gold is Zakat calculated?
Zakat on gold is calculated on 24-karat gold because it is considered pure gold without any impurities mixed in.
Is there Zakat on gold received as a gift?
Yes, because it becomes part of an individual’s possessions. If it reaches the Nisab threshold and a year has passed in its ownership, Zakat becomes obligatory.
Is there Zakat on gold for engagement or marriage?
There is a significant difference of opinion among scholars regarding the Zakat on gold worn for adornment. However, if it reaches the Nisab threshold and has been owned for a year, Zakat becomes due, and it is better to clear one’s conscience. If the gold is not worn, it is considered hoarded gold, and Zakat is obligatory on it according to all schools of thought.
Is it permissible to pay Zakat on gold?
In Islamic law, paying Zakat on gold is obligatory and not just permissible. Zakat becomes obligatory if the Nisab threshold is reached and it has been owned for a full lunar year.
Ruling on Zakat on white gold
White gold is treated the same as yellow gold according to all Islamic rulings. This is based on a fatwa issued by the Permanent Committee in Saudi Arabia, as calling it white gold does not change the rulings on Zakat for it.
Zakat on gold mined from the earth
Islam obligates Zakat on all types of gold mined from the earth.
What are the gold prices for calculating Zakat?
Zakat on gold is calculated based on 24-karat gold, as it is pure gold. If one wishes to pay Zakat on gold in cash, it must be calculated based on the 24-karat rate.
Is there Zakat on a wife’s gold?
Scholars have leaned towards the view that Zakat is not obligatory on gold worn for adornment, but there is disagreement. The correct view is that if it reaches the Nisab threshold and a year passes, its Zakat should be paid.
Nisab threshold for a wife's gold
The Nisab threshold for gold is 20 Mithqals, equivalent to 85 grams or more.
Calculating the amount of Zakat on a wife’s gold
If the gold reaches the Nisab threshold, Zakat is calculated at a rate of 2.5% of its value.
Who pays Zakat on the gold, the husband or the wife?
Islam obligates Zakat on gold on the owner of the gold, so the wife’s gold Zakat is obligatory on the wife. However, there is no harm if the husband pays the Zakat on behalf of his wife.
Zakat on a woman’s jewelry if it varies in types
Islam obligates Zakat on all types of gold jewelry, regardless of its purity (18-21-24). Zakat must be paid on the total pure gold content of each purity, combining them and paying the Zakat.
