Zakat FAQ

Zakat is one of the Five Pillars of Islam. It is an obligatory form of charity that requires Muslims who meet certain wealth criteria (nisab) to donate 2.5% of their qualifying wealth annually to those in need. The word 'Zakat' means 'purification' and 'growth', as it purifies one's wealth and increases blessings.

Zakat is obligatory on every Muslim who possesses wealth above the nisab threshold for a complete lunar year. The person must be an adult, sane, free, and possess wealth beyond their basic needs. Both men and women are required to pay Zakat if they meet these conditions.

Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. It is equivalent to 87.48 grams of gold or 612.36 grams of silver. The dollar value changes with market prices — use our Zakat Calculator for the latest live Nisab threshold. Most scholars recommend using the silver value to ensure more people can benefit.

Zakat is calculated at 2.5% (or 1/40) of your total qualifying wealth that has been in your possession for one complete lunar year. This includes cash, savings, investments, gold, silver, business inventory, and rental income. Debts you owe can be deducted from your total assets.

Zakatable wealth includes: cash and bank balances, gold and silver (including jewelry), stocks and investments, business inventory and merchandise, rental income, agricultural produce, and livestock. Personal items like your home, car, clothing, and household items are generally not subject to Zakat.

The Quran specifies eight categories of Zakat recipients (Surah At-Tawbah, 9:60): the poor (al-fuqara), the needy (al-masakin), Zakat administrators, those whose hearts are to be reconciled, freeing slaves, those in debt, in the cause of Allah, and travelers in need. Zakat cannot be given to one's parents, grandparents, children, grandchildren, or spouses.

Zakat should be paid once a lunar year has passed since your wealth reached the nisab threshold. Many Muslims choose to pay during Ramadan due to the increased rewards, but it can be paid at any time. It's recommended to set a specific date each year to calculate and pay your Zakat.

Yes, you can pay Zakat in installments throughout the year, as long as the full amount is paid by your Zakat anniversary date. Some scholars also allow paying Zakat in advance before the lunar year is complete, which is particularly common during Ramadan.

Yes, Zakat paid to a registered 501(c)(3) nonprofit organization like Qurbani Canada is tax-deductible in the United States. You will receive a donation receipt for your tax records. Please consult with a tax professional for specific advice regarding your situation.

Zakat is obligatory charity with specific rules about who must pay, how much, and who can receive it. Sadaqah is voluntary charity that can be given in any amount, at any time, to anyone in need. While Zakat has a fixed rate of 2.5%, Sadaqah has no minimum or maximum limits.

Scholars have different opinions on this. Some say Zakat is due on the current value if you can access the funds, while others say it's only due upon withdrawal. A common approach is to pay Zakat on the accessible portion. We recommend consulting with a knowledgeable scholar for your specific situation.

There is scholarly difference on this matter. The Hanafi school holds that Zakat is due on all gold and silver jewelry regardless of use. The Shafi'i, Maliki, and Hanbali schools generally exempt jewelry worn regularly for permissible purposes. It's advisable to follow the opinion of your local scholar or err on the side of caution.

If you miss paying Zakat, it remains a debt upon you that must be fulfilled. You should calculate the Zakat for the years you missed and pay it as soon as possible. Sincere repentance (tawbah) should also be made for the delay. Unlike prayers, Zakat can be made up at any time.

You cannot give Zakat to your direct ascendants (parents, grandparents) or descendants (children, grandchildren), or to your spouse. However, you can give Zakat to other relatives such as siblings, aunts, uncles, cousins, nieces, and nephews if they qualify as Zakat recipients.

Qurbani Canada follows a 100% Zakat policy, meaning every dollar of your Zakat reaches those in need. We distribute Zakat to eligible recipients in over 50 countries, focusing on the poor and needy, orphans, refugees, and those affected by disasters. Our distribution is overseen by Islamic scholars to ensure Shariah compliance.