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 is a globally recognized expert in Islamic Finance, Islamic Social Finance & Islamic FinTech. He is advising several global Islamic financial institutions spread across the UK, US, Canada, Malaysia, Singapore, UAE and other countries. He recently authored a book on Islamic Fintech called ‘Introduction to Islamic Fintech’, and has written several research papers on Islamic Finance and complex products.
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.
Zakat is obligatory after a time span of one lunar year passes from when a person initially owns wealth that equals the Nisab (threshold). Then, the owner needs to pay 2.5% (or 1/40) on the money in their possession at the end of the lunar year. A lunar year is approximately 355 days.
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 (SAW) said, ‘Even meeting your brother with a cheerful face is charity.’
Fakir: One who has neither material possessions nor means of livelihood.
Miskin: One with insufficient means of livelihood to meet basic needs.
Gharmin: One who is in debt (money borrowed to meet basic, Halal expenditure).
Ibn Sabil: One who is stranded.
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