NISAB VALUE

Nisab is the minimum amount of wealth a Muslim must have—after calculating necessary expenses—to be eligible to contribute zakat. Nisab is equivalent to the current value of 3 ounces of gold (or 85 grams of 24k gold). The nisab we’ve calculated for our zakat calculator is based on the most-recent report available to us (disclaimer: this number may change daily depending on fluctuations in the gold exchange rate).

Hawl is defined as the completion period for a zakat asset, which is one lunar year. In other words, the wealth on which zakat should be paid must have been held for at least one full year. There are some forms of zakat that do not require hawl, such as for crops, when zakat should be paid at the time of the harvest. For clarification, it is recommended that you consult with your local imam or scholar.

The Nisab value is what an individual must have before they are required to pay zakat. An individual can calculate this based on the value of gold or silver that they have. However, by using the silver value, it means that more people are likely to be eligible for zakat, which means more money benefiting the poor and needy.

If this amount is more than the value of the current Nisab value (612.36 grams of silver), and you have also met all other requirements then you will need to pay zakat on this.

As a general principle Islamic Relief uses silver to calculate the Nisab. However, if you only have gold and do not have any cash savings or other forms of wealth/assets, you will need to use gold to calculate the Nisab.

If this amount is more than the value of the current Nisab value (612.36 grams of silver), and you have also met all other requirements then you will need to pay zakat on this.

As Zakat is an individual obligation, you must compare the Nisab with your own wealth and his/her own wealth to see if each of you has to pay Zakat. If you do, you may pay Zakat for both yourself and your husband/wife as long as he/she consents to that.