Zakat represents a sensitive matter in Islam as it pertains to wealth, something individuals strive and endeavor to accumulate.
Today’s article discusses the annual Zakat on gold, including its conditions, how it is calculated in Islamic law, and finally, addressing some of the most common questions circulated among Muslims.
Is Zakat on Gold Due Annually or Only on the Increase?
Islam mandates annual Zakat on gold if it reaches the Nisab (minimum amount) set by the Prophet at 20 Mithqal (approximately 85 grams or more).
The Prophet (peace be upon him) used to send collectors to tribes and cities to gather Zakat on all types of wealth without differentiation between those who paid their Zakat the previous year and those who did not.
Annual Gold Zakat Conditions
The conditions for annual gold Zakat do not differ from those required for Zakat on various types of gold. Islam specifies three main conditions:
- The gold must reach the Nisab of 20 Mithqal, which is the minimum threshold.
- A lunar year must pass on the possession of the gold subject to Zakat.
- The gold must be individually owned by one person.
Nisab for Annual Gold Zakat
Anyone owning 85 grams of gold or more must pay Zakat. The Nisab is reaching the mentioned amount.
Calculating Zakat on Gold Annually and with Any Increase
Zakat on gold is calculated annually after weighing the owned gold. If it amounts to 85 grams or more, Zakat is due at “one-quarter of a tenth,” approximately 2.5% of the gold’s value.
If the weight remains constant without increase or decrease, the percentage remains the same. If there is an increase, the new increase is calculated with the old gold, provided that a lunar year has passed on it.
Masarat for Education and Sustainable Development in Northern Syria
Masarat is a free education initiative aiming to provide knowledge and science to all affected groups, including displaced and refugee populations in Northern Syria.
You can pay your gold Zakat through it to support reaching the widest possible audience and providing education to them, offering hope for a better life.
Frequently Asked Questions About Gold Zakat
When is Zakat due on gold?
Zakat on gold becomes obligatory after the fulfillment of the following two conditions:
- A lunar year has passed on its possession.
- It reaches the Nisab (minimum amount required for Zakat) of twenty Mithqal or weighs 85 grams or more.
Is Zakat on gold required every year?
Islam mandates the annual Zakat on zakatable gold, requiring its payment every year if the gold meets the conditions for Zakat.
Ibn Hazm stated in “Maratib al-Ijma’”: “They agreed that Zakat is repeated on every wealth upon the completion of each lunar year.”
When is Zakat obligatory on gold and silver?
When gold reaches 20 Mithqals or more, approximately 85 grams of gold, and silver reaches 140 Mithqals, Zakat is obligatory on both.
