إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ
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 wayfarers; a duty imposed by Allah. Allah is knower, Wise. The Holy Qur’an 9:60
What is Zakat and Who Owes It?
Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories of people. To learn more, scroll down to Zakat 101 below.
Mufti Faraz Adam
Manzil's Zakat Advisor
Mufti Faraz Adam is a globally recognized expert in Islamic Finance, Islamic Social Finance & Islamic FinTech. He is the Managing Associate of National Zakat Foundation Worldwide and an advisor to several Zakat institutions across the globe. He is also an active Shariah advisor for Islamic financial institutions. He is on several global Shariah boards in countries such as Switzerland, Bahrain, Singapore, Dubai, Saudi Arabia, United Kingdom and the United States. He has published over a dozen research papers in contemporary Islamic Finance matters and has published many chapters in Islamic FinTech.
Mufti Faraz completed a six-year Alimiyyah program in the UK & qualified as a Mufti in South Africa under Mufti Ebrahim Desai. He completed a Masters degree in Islamic Finance, Banking and Management from Newman University, UK And completed an MBA specializing in Fintech from the University of Michigan, US. Additionally, he has attained various finance-industry qualifications such as the IFQ, CIFE and is a Certified Shariah Advisor and Auditor (CSAA). He is currently an ACCA candidate and is studying to become a qualified Independent Financial Advisor with the CISI.
Your Zakat has the power to transform lives and empower communities in Canada and abroad. To make the process easier for you, use our online Zakat calculator to enter your assets and liabilities, and easily find your Zakat contribution below.
Live, up-to-date Nisab values are provided for your convenience.
The basics of Zakat. When, how, and who is eligible for zakat al-maal.
Passage of One Lunar Year
Zakat is obligatory after a time span of one lunar year passes with the money in the control of it’s owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. (A lunar year is approximately 355 days).
Deduction of Debts
The owner should deduct any amount of money he or she borrowed from others; then check if the rest reaches the necessary nisab then pays Zakat for it.
If the owner had enough money to satisfy the nisab at the beginning of the year, then the money increased (in profits, salaries, inheritance, grants…etc.), the owner needs to add the increase to the nisab amount owned at the beginning of the year; then pay Zakat, 2.5%, of the total at the end of the lunar year. (there are small differences in the fiqh schools here)
Each Muslim calculates his or her own Zakat individually. For most purposes this involves the payment each year of two and a half percent of one’s capital.
A pious person may also give as much as he or she pleases as sadaqa, and does so preferably in secret. Although this word can be translated as ‘voluntary charity’ it has a wider meaning. The Prophet said ‘even meeting your brother with a cheerful face is charity.’
8 categories of people eligible for Zakat
One who has neither material possessions nor means of livelihood.
One who wants to free himself from bondage or the shackles of slavery.
One with insufficient means of livelihood to meet basic needs.
One who is in debt (money borrowed to meet basic, halal expenditure).
One who is appointed to collect zakat.
One who fights for the cause of Allah.
One who converts to Islam.
One who is stranded in journey.