What is the nisab for zakat?

Detailed answer

The nisab is the minimum amount of wealth a Muslim must own before zakat becomes due. It is measured in gold or silver:

• Gold nisab: the value of 85 grams of gold.
• Silver nisab: the value of 595 grams of silver.

If your zakatable wealth, such as cash, savings, gold, silver, shares and business stock, is at or above the nisab and stays there for one full lunar year, you pay 2.5% of it. If it is below the nisab, no zakat is due.

Where the figures come from

The Prophet (peace be upon him) said that no zakat is due on less than five awaq of silver (Bukhari and Muslim), which equals 200 silver dirhams. For gold, the nisab is 20 dinars (Abu Dawud). Converted into modern weights, these give the familiar figures of about 595 g of silver and 85 g of gold.

Gold or silver: which one do I use?

Because silver is much cheaper than gold, the silver nisab is a much lower amount of money. When it is used, more people pay zakat and more poor people are helped. For this reason many scholars and zakat bodies recommend the silver nisab, especially for cash savings. If your wealth is mainly in gold, the gold nisab is commonly used.

Some scholars hold that the gold nisab better reflects real wealth today, because the silver nisab has become so low; if you are unsure, ask a trusted local scholar or your local zakat body.

How to find today's value

• Check the current price of gold or silver per gram in your currency and multiply it by 85 or 595.
• Most mosques and zakat organisations publish the nisab in local currency and update it regularly.
• Use the value on your zakat date, as prices change every day.

Next steps

Once you know the nisab, see how to calculate zakat, and check how it applies to your savings and to gold jewellery.