Zakat

Zakatable Wealth

The portion of a person's total wealth that is subject to Zakat calculation — excluding personal-use items like a primary home and vehicle.

Zakatable wealth refers to the categories of assets that are included in the Zakat calculation. Not all wealth is subject to Zakat — personal-use items such as a primary residence, personal vehicle, clothing, furniture, and household goods are generally excluded across all schools of thought.

The main categories of zakatable wealth include: cash and bank balances, gold and silver (with madhab-specific rules on jewelry), stocks and investment portfolios, business inventory held for trade, and agricultural produce. Some assets, like retirement accounts or debts owed to you, have varying treatment across different schools.

To determine the Zakat obligation, a person totals their zakatable wealth, deducts eligible liabilities (the treatment of which varies by madhab), and checks whether the net amount meets or exceeds the Nisab threshold. If it does and a full Hawl has passed, Zakat at 2.5% is due on the total zakatable wealth.

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Mizaan provides educational guidance based on established fiqh. This is not a fatwa service. For personal rulings, consult a qualified scholar.