Table of Contents
Introduction to Zakah-Eligible Wealth
Zakah is not due on every item a person owns. Islam specifies certain types of wealth that are subject to zakah once they reach the required minimum amount, called the niṣāb, and a full lunar year passes, called ḥawl, for most categories. Allah links zakah to specific forms of wealth in the Qur’an.
“Take from their wealth a charity by which you purify them and cause them to grow, and invoke blessings upon them.”
(Qur’an 9:103)
The Prophet ﷺ described zakah in detail for different kinds of property.
“There is no zakah on a Muslim’s slave or horse.”
(al‑Bukhari)
This shows that not every possession is zakah‑able, only certain categories. In this chapter we focus on those categories of wealth that are generally subject to zakah. The detailed conditions and recipients of zakah belong to other chapters and will not be repeated here.
Zakah applies only to specific categories of wealth, each with its own niṣāb and rules. Owning something valuable does not automatically mean zakah is due on it.
Zakah on Gold and Silver
Basis from Qur’an and Sunnah
Gold and silver were the primary forms of money in earlier times. Zakah on them is clearly established.
“And those who hoard gold and silver and do not spend it in the way of Allah, give them tidings of a painful punishment.”
(Qur’an 9:34)
The Prophet ﷺ said regarding silver: “When you possess two hundred dirhams and a year passes on them, five dirhams are due.”
(Abu Dawud)
He also fixed the minimum amounts for gold and silver in authentic narrations.
Gold and Silver as Stored Wealth
Zakah is due on gold and silver when they are owned for value, whether as bars, coins, or jewelry that is kept mainly as wealth and saving. When they reach the niṣāb and a year passes over them, zakah is due at the rate of one fortieth, which is $2.5\%$.
Any gold or silver kept as wealth, savings, or investment, that reaches niṣāb and remains for a lunar year, is subject to zakah at $2.5\%$.
Gold and silver objects, such as utensils, that are prohibited for use are also treated as wealth if owned, and zakah applies when they meet the conditions.
Gold and Silver Jewelry
If gold and silver jewelry is clearly intended as financial storage or investment, or is excessive by reasonable custom, then it takes the ruling of gold and silver wealth, and zakah is due.
There is scholarly discussion about jewelry worn for adornment. Some scholars hold that jewelry for permissible personal use is exempt, while others hold that zakah is still required if the niṣāb is reached and a year has passed. Because the Prophet ﷺ warned against hoarding gold and silver, many scholars advise paying zakah on gold and silver jewelry to be safe.
A woman came to the Prophet ﷺ with a girl who had two heavy gold bangles. He ﷺ said, “Do you pay zakah on this?” She said, “No.” He said, “Would it please you that Allah should make them bangles of fire for you on the Day of Resurrection?” So she took them off and gave them to the Prophet ﷺ and said, “They are for Allah and His Messenger.”
(Abu Dawud)
This hadith shows the seriousness of neglecting zakah on gold jewelry when it is treated as wealth.
Zakah on Cash, Bank Balances, and Modern Money
Cash as the Modern Equivalent of Gold and Silver
Today, people commonly use paper money and electronic balances rather than gold and silver coins. Since these forms of money represent purchasing power and function as currency, they follow the same general ruling as gold and silver in zakah. The principle is that anything used as money and medium of exchange, when saved and not immediately needed, is treated as wealth.
Allah says: “O you who have believed, spend from the good things which you have earned.”
(Qur’an 2:267)
Earnings kept as savings are included in this verse, and zakah is the obligatory part of that spending.
Balances and Accounts
This category includes:
Savings kept in cash at home.
Balances in current and savings accounts.
Balances in digital wallets or similar services.
Once the total of this liquid wealth reaches the niṣāb, based on the market value of gold or silver, and a lunar year passes while the wealth remains at or above niṣāb, zakah is due on the whole amount at the end of the year.
All cash and equivalents owned at the zakah due date are added together. If they equal or exceed the niṣāb and a year has passed, zakah is due at $2.5\%$.
Funds temporarily in transit, such as money sent and received but still under one’s ownership, are part of this total.
Zakah on Business Goods and Trade Inventory
Evidence for Trade Goods
The Companions and early scholars agreed that items bought and held for resale are subject to zakah.
Allah says: “O you who have believed, spend from the good things which you have earned.”
(Qur’an 2:267)
What a merchant earns is his trade profit.
Ibn ‘Umar (رضي الله عنهما) said: “There is zakah on trade goods.”
(Reported in works of fiqh from the practice of Companions)
Trade goods are not kept for personal use, but purchased in order to sell and gain profit.
What Counts as Trade Goods
Anything bought with the clear intention of resale forms part of trade inventory. This can include:
Merchandise in a shop.
Goods stored in a warehouse.
Stock held by a trader, whether raw materials or finished products, if acquired to sell.
Property that is personally used, such as a family car or one’s own home, is not subject to zakah as trade goods, even if valuable.
A key condition for zakah on trade goods is the intention of resale. Items kept for personal use are not trade goods.
At the end of the zakah year, the merchant evaluates all trade goods at their current market value, not purchase price, then combines this with cash on hand and receivable debts that are likely to be paid. If this combined amount is at or above niṣāb, zakah is due at $2.5\%$.
Zakah on Agricultural Produce
Qur’anic Basis
Crops and fruits are mentioned directly in the Qur’an in relation to giving Allah’s due.
“And He it is Who produces gardens, with trellises and without, and date palms, and crops of different shape and taste, and olives and pomegranates, similar and dissimilar. Eat of their fruit when they ripen, and give its due on the day of harvest, and do not waste, indeed, He does not like the wasteful.”
(Qur’an 6:141)
“Give its due on the day of harvest” refers to the obligatory right in the produce, which is zakah.
Types of Crops Subject to Zakah
The Prophet ﷺ specified that zakah is due on certain staple, storable crops.
The Prophet ﷺ said: “There is no charity on less than five wasq.”
(al‑Bukhari and Muslim)
The wasq is a traditional measure of volume, and five wasq is the threshold below which no zakah is due. Authentic hadiths mention crops such as dates and grains. From these, scholars derived that zakah applies to:
Staple crops that people commonly store and live on, such as grains.
Certain fruits like dates and raisins that can be dried and stored.
Crops that are perishable and not stored, or are not staple foods, are generally not subject to zakah in the same way.
Rate of Zakah on Crops
The Prophet ﷺ determined the rate according to the effort and cost of irrigation.
He ﷺ said: “On that which is watered by the sky, or springs, or its own roots, a tenth is due; and on that which is watered by camels (i.e., by effort) half of a tenth is due.”
(al‑Bukhari)
Thus, if the land is watered naturally by rain or rivers, the rate is $10\%$. If it requires artificial irrigation with significant cost, the rate is $5\%$.
On qualifying crops that reach the minimum harvest amount, zakah is due at 10% if naturally irrigated, and 5% if irrigated with significant human effort and cost.
Zakah on crops is due at the time of harvest, not after a full year, which is a key difference from other types of zakah.
Zakah on Livestock
Types of Animals Covered
Not all animals are zakah‑able. The Prophet ﷺ specified certain livestock.
The Prophet ﷺ wrote in his letter regarding sadaqah: “No zakah is due on less than five camels.”
(al‑Bukhari)
Detailed narrations establish zakah on:
Camels.
Cows and buffaloes.
Sheep and goats.
These are animals that graze and are kept for breeding and benefit.
Conditions for Zakah on Livestock
For livestock to be subject to zakah, scholars derived rules from prophetic instructions given to zakah collectors:
The animals must reach certain minimum numbers, counted separately for each type.
They must be grazing freely most of the year on open pasture, not constantly fed by purchased fodder as a commercial production input.
They should be kept mainly for milk, breeding, or increase, not as trade goods.
If the animals are not grazing livestock but are bought and sold like inventory in a business, then they are treated as trade goods, and zakah is given as on trade inventory rather than as livestock.
The Prophet ﷺ laid out detailed schedules for what is given at different numbers of each animal. These details belong to more advanced study, but the principle for beginners is that livestock kept as grazing herds for growth and benefit, and which reach the minimum numbers, are zakah‑able.
Grazing herds of camels, cattle, sheep, and goats, kept for breeding and growth and reaching the minimum number, are subject to zakah according to specific prophetic rules.
Zakah on Mining, Natural Resources, and Rikāz
Extracted Minerals and Resources
Minerals taken from the earth can form a significant type of wealth. Based on general verses on spending from what is extracted, and reports from early Muslims, many scholars held that valuable minerals such as gold, silver, and similar resources, when extracted and owned, may require zakah either like gold and silver or as a special type if the value is large.
Allah says: “And from whatever We have provided for them, they spend.”
(Qur’an 2:3)
Minerals that are refined into money or sold for money are usually treated under the rules of monetary wealth, so their value is added to cash and other zakah‑able wealth.
Rikāz (Buried Treasure)
Rikāz is found wealth buried in the ground, such as old treasure from past nations, discovered without a known owner. The Prophet ﷺ distinguished it from other wealth.
He ﷺ said: “On rikāz, one fifth is due.”
(al‑Bukhari and Muslim)
This fifth is taken immediately when the treasure is found and is given in the same channels as other obligations, not after a year. It is separate from regular zakah on accumulated wealth.
Rikāz, buried treasure from past peoples with no known owner, is subject to an immediate fifth (20%) at the time of discovery, not the usual $2.5\%$ after a year.
Zakah on Debts Owed to a Person
Debts as Part of Wealth
Money lent to others can still be considered part of one’s wealth. The Prophet ﷺ encouraged the giving of loans, and scholars debated how zakah applies to such debts. The principle is that if the debt is expected to be repaid, it remains wealth of the lender.
Allah mentions: “And if the debtor is in hardship, then let there be postponement until ease.”
(Qur’an 2:280)
While the Qur’an speaks here about kindness in repayment, the wealth is still counted as belonging to the creditor.
Collectable and Doubtful Debts
If a person confidently expects repayment from a solvent debtor, many scholars consider zakah due on this debt as part of total wealth, either each year or in a lump sum when the debt is repaid. If the debt is doubtful or very difficult to recover, zakah is not practically paid on it until it is actually received.
When the debt is eventually paid years later, some scholars advise paying zakah for one year only, others for all past years, depending on the circumstances and ability.
The important point for beginners is that money others owe you is not ignored. If it is likely to be repaid, it is treated as part of your wealth for zakah calculation.
Debts that are likely to be repaid are counted as part of your zakah‑able wealth. Doubtful or unrecoverable debts are zakah‑able only if and when they are actually received.
Zakah Related to Investments and Modern Assets
Shares and Stocks
Shares in companies represent ownership of a portion of the company’s assets. If a person buys and sells shares as a trade, with the intention of profit from price changes, the shares are treated as trade goods, and zakah is due on their market value at the end of the year, along with cash and other trade assets.
If shares are held for long‑term investment to receive dividends rather than frequent trading, scholars have suggested two main approaches based on the underlying assets of the company. For a beginner, the safer and simpler approach is to look at the value of the shares and treat them like other investment wealth, then pay zakah at $2.5\%$ every year if niṣāb is met.
Rental Property and Real Estate
Real estate itself, when owned as a personal home or for rental income, is not directly subject to zakah as a physical asset. Zakah applies to the income that remains saved from rent, not to the building itself.
The Prophet ﷺ said: “The son of Adam says: ‘My wealth, my wealth.’ But of your wealth, O son of Adam, is there anything for you except what you ate and used up, or wore and wore out, or gave in charity and sent ahead?”
(Muslim)
The building is a tool that generates income. Zakah is due on the saved income when it reaches niṣāb and a year passes, just like other cash. If someone buys land and property with the intention of reselling it, then it is trade goods, and its value becomes zakah‑able.
Property kept for resale is zakah‑able as trade goods. Property kept for use or rental is not zakah‑able in itself; only the saved rental income is subject to zakah.
Other Financial Instruments
Different savings vehicles exist today. The core principle is that any form of savings or investment that can be valued in money and is under one’s ownership is usually treated like cash or trade assets. The zakah is then calculated yearly on the total net value of such wealth at $2.5\%$, if the total reaches niṣāb.
Wealth Generally Exempt from Zakah
Personal Use Items
The Prophet ﷺ made clear that personal use items are excluded from zakah.
He ﷺ said: “There is no zakah on a Muslim’s slave or horse.”
(al‑Bukhari)
From this, scholars concluded that possessions kept for personal use and not for trade are normally not subject to zakah. This includes items such as:
The home one lives in.
Personal clothing and furniture.
Tools and equipment needed for one’s work.
Personal vehicle used for transport.
These items may be valuable, but since they are not stored wealth or trade goods, they are not part of zakah‑able assets. Zakah is concerned with wealth that grows and can be shared with those in need.
No zakah is due on personal living necessities such as one’s home, clothing, furniture, work tools, and personal vehicle, as long as they are not kept for sale or investment.
Conclusion
Types of wealth subject to zakah are clearly guided by the Qur’an and Sunnah and clarified by the understanding of the early Muslims. The main zakah‑able categories for a beginner to recognize are: gold and silver, cash and equivalents, trade inventory, qualifying agricultural produce, grazing livestock, certain extracted or found resources, and many forms of savings and investments.
Each category has its own conditions, niṣāb, and rules, but they all share two main ideas. First, the wealth must be of a type that grows or can grow. Second, it must reach the minimum threshold and remain with the person for the required time, except in categories like crops and rikāz where it is due at harvest or discovery.
With this understanding of what types of wealth are subject to zakah, the believer can now focus on how to calculate zakah correctly and to whom it must be given, which will be covered in related chapters.