What Is Zakat? Meaning, Rules and How to Pay
Zakat is the third pillar of Islam: 2.5% of wealth above the nisab, held for a lunar year. Learn who pays, who receives it, and how to give.
By Embrace Relief Team · Updated October 28, 2026
The useful part before the long read.
Zakat is one of the five pillars of Islam and is obligatory on Muslims whose wealth is above the nisab for a lunar year.
The standard rate is 2.5% of net zakatable wealth, such as cash, savings, gold and silver, investments and business stock, minus immediate debts.
Zakat may be given to the categories of recipients named in the Quran (9:60), such as the poor, the needy and those in debt.
You can estimate your amount with Embrace Relief's Zakat calculator and give online.
Zakat is the third pillar of Islam. It is an annual act of giving that Muslims who meet a minimum level of wealth, called the nisab, owe to people in need. The usual rate is 2.5% of net zakatable wealth held for one full lunar year. The word zakat means both purification and growth: it purifies wealth and the giver, and helps communities grow stronger.
What does zakat mean in Islam?
In Arabic, zakat means purification and growth. The Quran links it to prayer again and again, and describes it as a way to purify wealth: "Take, [O Muhammad], from their wealth a charity by which you purify them and cause them increase" (Quran 9:103). It is not a tax or a favor. It is the right of people in need over a part of your wealth.
Who has to pay zakat?
Zakat is due on a Muslim who is an adult, of sound mind, and whose net wealth is above the nisab for one full lunar year (the hawl). The nisab is the value of 87.48 grams of gold or 612.36 grams of silver. Many scholars recommend using the silver value, because it is lower and brings more people in need into the circle of support. Others use gold. If you are unsure, ask a scholar you trust. For how to check today's value, see our nisab guide.
How much is zakat?
The standard rate is 2.5% of your net zakatable wealth. That includes:
- Cash in the bank and at home
- Gold and silver, including jewelry in many schools of thought
- Investments, such as stocks and retirement accounts (see zakat on stocks, 401(k) and IRAs and zakat on crypto)
- Business assets and goods for sale
- Money owed to you that you expect to receive
Immediate debts, such as rent, utilities and bills that are due, are subtracted first. Your own home, car and everyday belongings are generally not zakatable.
| Example | Amount |
|---|---|
| Net zakatable wealth (above the nisab for a full lunar year) | $20,000 |
| Zakat due at 2.5% | $500 |
This example is only to show the arithmetic. Use the Zakat calculator or read how to calculate your zakat for your own numbers. For complex assets, confirm your calculation with a qualified scholar.
Who can receive zakat?
The Quran names the groups that may receive zakat (Quran 9:60). They include the poor, the needy, those in debt, travelers in need and those who collect and distribute zakat. Zakat cannot go to your parents, grandparents, children or spouse. Read the full list in Who Is Eligible for Zakat?
On Embrace Relief's Zakat page, you can calculate your zakat and choose from Zakat-designated program options. Support is directed to eligible recipients through the selected program.
When should you pay zakat?
Zakat becomes due when your wealth has stayed above the nisab for a full lunar year. Many Muslims pick one day each year, often in Ramadan, to calculate and pay. See When Should I Pay Zakat?
Why is zakat important?
- Worship: it is a pillar of Islam and an act of obedience to Allah.
- Purification: it cleanses wealth and the heart from greed.
- Justice: it shares wealth so that the poor are not left behind.
- Community: it builds trust and mercy between neighbors, families and nations.
Zakat is different from voluntary charity. For the full comparison, see Zakat vs. Sadaqah. If you give to a US 501(c)(3), your zakat may be tax-deductible; see Is Zakat Tax-Deductible in the US?
This article is general information, not religious or tax advice. Please consult a qualified scholar about your zakat.
Frequently asked questions
What is zakat in simple terms?
Zakat is the yearly obligatory charity that Muslims whose wealth is above the nisab give to people in need. The standard rate is 2.5% of net zakatable wealth held for a lunar year.
What is the nisab?
The nisab is the minimum amount of wealth that makes zakat due. It is the value of 87.48 grams of gold or 612.36 grams of silver.
How much zakat do I have to pay?
Generally 2.5% of your net zakatable wealth, which is your cash, gold and silver, investments and business assets, minus immediate debts.
Who can I give zakat to?
To the recipient categories named in the Quran (9:60), such as the poor, the needy and those in debt. You cannot give zakat to your parents, grandparents, children or spouse.
Can I pay zakat online?
Yes. You can calculate your zakat and give online through Embrace Relief's Zakat page.