How to calculate and pay Zakat in 2026

Zakat is compulsory for adult Muslims of sound mind who possess wealth above the nisab, the minimum threshold that determines eligibility.

According to the organisation, zakat is calculated at 2.5% of net zakatable assets held over one lunar year (hawl).

The nisab is based on the value of either gold or silver. Islamic Relief noted that while both measures are valid, many scholars prefer using the silver benchmark because it sets a lower threshold and enables more people to contribute.

As of the latest update, the nisab based on 612.36 grams of silver is approximately $1,470.31, while the value based on 87.48 grams of gold stands at about $13,806.48.

The organisation added that these values fluctuate daily in line with market prices.

Zakatable assets include gold, silver, cash, savings, business inventory and investments. Individuals are required to total their assets on their zakat anniversary date and deduct eligible liabilities to determine their net assets.

Debts payable within 12 months, overdue payments and up to one year’s instalments of long-term debts may be deducted. However, expenses not yet due and liabilities beyond the next 12 months cannot be subtracted.

In cases involving mortgages or student loans, only imminent or overdue amounts should be deducted.

The charity clarified that zakat is not payable on interest (riba). Any interest received should instead be given as general charity, not counted as zakat.