☪️ Zakat Complete Guide Pakistan 2026
This educational guide explains how Zakat is generally calculated and given: the Nisab concept, standard rate, who is obligated to pay, eligible recipients, and practical steps. It is designed to complement our Zakat calculator and help you discuss your situation with scholars or advisers.
☪️ What Is Zakat?
Zakat is one of the Five Pillars of Islam and is a mandatory form of charity for Muslims who meet certain wealth conditions. It is often translated as “purification,” because it purifies both wealth and the heart by sharing a portion of one’s surplus with people in need.
💚 The Essence of Zakat
For eligible Muslims, Zakat is typically paid once a lunar year at a standard rate of 2.5% (one‑fortieth) of qualifying wealth that has stayed above the Nisab threshold for a full lunar year.
📊 Standard Zakat Rate
2.5% (One‑Fortieth)
For most types of personal wealth such as cash, savings, gold, silver and many investments, the widely applied Zakat rate is 2.5% on the amount held above Nisab for one lunar year.
A common way to express this is: Zakat amount equals qualifying wealth multiplied by 0.025.
💰 Nisab Threshold – Gold and Silver
Nisab is the minimum level of wealth a Muslim must have before Zakat becomes obligatory. Classical guidance links Nisab to specific weights of gold and silver: around 87.48 grams of gold or 612.36 grams of silver, converted into local currency using current market prices.
How Nisab Is Usually Worked Out
- Check the current market price of gold and silver per gram in your area.
- Multiply the price by 87.48 grams for gold Nisab, or 612.36 grams for silver Nisab.
- Compare your total Zakatable wealth to these amounts.
Gold vs Silver Nisab
Many contemporary scholars note that using the silver Nisab leads to a lower monetary threshold, which means more people become eligible to pay Zakat and more recipients are supported. Others prefer the gold Nisab for consistency with wealth standards.
Which Nisab Should I Use?
In practice, people often follow the opinion of trusted local scholars or organisations in their country when choosing between gold and silver Nisab, especially when using mixed assets like cash, jewellery and investments.
✅ Who Is Required to Pay Zakat?
Basic Conditions
- Being a Muslim.
- Having reached maturity and soundness of mind.
- Owning wealth at or above Nisab, beyond essential needs and debts.
- Keeping that level of wealth for a full lunar year (known as hawl).
People Usually Exempt
- Those whose net wealth never reaches the Nisab level during the year.
- People whose debts reduce their net Zakatable wealth below Nisab.
- Children and those who are not of sound mind, with some differences of opinion about how guardians handle their wealth.
💎 Common Zakatable Assets
1. Cash and Bank Balances
- Cash at home and in wallets.
- Current and savings accounts.
- Foreign currency holdings.
2. Gold and Silver
- Gold and silver jewellery, coins and bars.
- Mixed‑metal jewellery, where the gold/silver component is valued separately.
Differences of Opinion on Jewellery
Schools of Islamic law differ on whether personal gold and silver jewellery used only for adornment is always Zakatable, partly Zakatable, or exempt. Many Pakistani scholars follow opinions that treat such jewellery as Zakatable once Nisab is reached.
3. Investments and Business Assets
- Shares and unit trusts, usually valued at their current market value when held for investment.
- Business inventory and goods intended for sale.
- Amounts owed to you (receivables) that you reasonably expect to be paid.
4. Retirement and Long‑Term Savings
Treatment of retirement and pension funds can vary depending on whether you have access to the funds, how they are structured, and the advice of your scholars. Many guides distinguish between locked‑in funds versus savings you can withdraw.
❌ Assets Usually Not Subject to Zakat
- Your main home that you live in.
- Personal vehicles used for transport rather than trade.
- Everyday personal items such as clothes, furniture and household appliances.
- Business equipment and machinery used to generate income, rather than held for sale.
Rental property is often treated differently: the property itself may not be Zakatable, but net rental income that has been saved can be.
🧮 Example: Step‑by‑Step Zakat Calculation
Step 1: Add Up Zakatable Assets
Illustrative Example (Amounts Just for Method)
| Cash at home | Rs. 50,000 |
| Bank savings | Rs. 300,000 |
| Gold jewellery (30 grams valued at current rate) | Rs. 600,000 |
| Shares (current value) | Rs. 200,000 |
| Business inventory | Rs. 500,000 |
| Total Assets | Rs. 1,650,000 |
Step 2: Subtract Short‑Term Debts
| Immediate bills and dues | Rs. 50,000 |
| Total Deductible Debts | Rs. 50,000 |
Scholars differ on how to treat long‑term loans when calculating Zakat; many guides recommend only deducting amounts that are due in the near term.
Step 3: Find Net Zakatable Wealth
Total Assets: Rs. 1,650,000
Minus Debts: Rs. 50,000
Net Zakatable Wealth: Rs. 1,600,000
Step 4: Compare With Nisab, Then Apply 2.5%
If your net wealth is above the current Nisab in rupees, Zakat is due.
Zakat at 2.5% on Rs. 1,600,000 would be Rs. 40,000 in this example.
Always recalculate the Nisab value using up‑to‑date gold or silver prices at your Zakat date.
🎯 Eligible Categories to Receive Zakat
The Quran lists eight categories of people who may receive Zakat, including the poor, the needy, those in debt and those working to administer Zakat.Within these categories, scholars have identified many practical situations where people may be eligible, such as struggling families, orphans and students of Islamic knowledge.
People Usually Not Given Zakat
- Parents, grandparents and direct ascendants.
- Children, grandchildren and direct descendants.
- A spouse, because their support is already an obligation.
- People who clearly have wealth above Nisab and are not in need.
Giving Zakat to Relatives
Many scholars encourage giving Zakat to eligible relatives such as siblings, aunts, uncles and in‑laws if they genuinely fall into one of the needy categories, as this supports both family ties and social welfare.
⏰ When Is Zakat Paid?
Zakat becomes due after a full lunar year has passed while your wealth has remained above Nisab. Many people choose a recurring date, often in Ramadan, to assess their wealth and pay Zakat for simplicity and consistency.
Paying earlier in the year as an advance is generally accepted by many scholars, particularly when there is clear need, as long as it is reconciled at your Zakat date.
💳 Zakat and Income Tax in Pakistan
In Pakistan, Zakat is a religious obligation, while income tax is a legal obligation under state law. For tax purposes, amounts paid as Zakat under the Zakat and Ushr Ordinance or through recognised channels can usually be claimed as a deductible allowance, reducing taxable income for the relevant year.
The exact mechanism for claiming Zakat as an allowance or credit is described in the Income Tax Ordinance and FBR guidance, and can change over time.
📝 Practical Ways to Give Zakat
Direct Support
- Providing funds directly to known individuals or families who are eligible.
- Helping with essential needs such as food, housing or education expenses where they qualify.
Via Trusted Organisations
Many Islamic charities and welfare organisations operate Zakat funds and publish how they distribute them. It is important to check that an organisation clearly separates Zakat funds from general donations and allocates them to eligible categories.
Check Before You Give
Before donating, look for transparent reporting, clear Zakat policies and, where possible, registration or oversight by reputable bodies. This helps you fulfil both the spiritual and practical responsibilities of Zakat.
❓ Frequently Asked Questions
Do I pay Zakat on my monthly salary?
Zakat is generally calculated on savings and wealth that remain with you, not on each salary payment as it comes in. If part of your salary is saved and your overall wealth stays above Nisab for a year, that saved portion typically becomes Zakatable.
Do I pay Zakat on my home and car?
In most guides, your main residence and personal vehicle are not Zakatable assets, although any savings or investments you hold alongside them still are.
What about money I have lent to others?
If you reasonably expect the loan to be repaid, some scholars advise including it in your Zakat calculation; if the debt seems unlikely to be recovered, they suggest waiting until you actually receive it before paying Zakat on it.
📞 Getting Personal Zakat Guidance
Where to Ask Detailed Questions
- Local imams and mosque scholars who understand your school of thought.
- Dar‑ul‑Ifta services run by reputable institutions.
- Well‑known Zakat organisations that publish fiqh‑based guidance.
🧮 Calculate Your Zakat
You can use our Zakat calculator to estimate your Zakat based on your current assets and Nisab values on your chosen Zakat date.
Open Zakat Calculator →⚖️ Educational Disclaimer
This article provides a general overview of how Zakat is widely understood and calculated. Detailed rulings can differ between scholars, schools of thought and countries, and individual circumstances may require tailored fiqh advice.
It is not a fatwa or a substitute for consulting qualified scholars. For binding religious guidance or complex cases (such as businesses, complex investments or multiple missed years), you should seek a specific opinion from a trusted scholar or institution.