Finance & Tax

How to Calculate Your Zakat Properly (Including the Jewellery Question)

Published 14 Jul 2026 · 3 min read

The arithmetic of Zakat is simple — 2.5% of qualifying wealth. Almost every difficulty people have is with the two questions that come before the arithmetic: am I above the nisab, and what counts.

The nisab

Zakat becomes obligatory once your wealth passes the nisab, which is the value of:

  • 87.48 grams of gold, or
  • 612.36 grams of silver

Because gold and silver move independently, these are not the same figure — the silver threshold is usually far lower. Most contemporary scholars recommend using the silver nisab, on the reasoning that a lower bar means more Muslims fulfil the obligation and more reaches those in need. Others hold that gold is the more stable historical measure.

If your wealth sits between the two thresholds, this choice decides whether you owe Zakat at all. That is not a technicality to shrug at — it is worth asking a scholar you trust rather than picking whichever is convenient.

Calculate your Zakat

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What counts, and what does not

ZakatableNot zakatable
Cash and bank savingsThe home you live in
Gold and silverYour car
Shares and investmentsFurniture and clothing
Business stock and receivablesAnything in personal use

Zakat is not a tax on income. It falls on wealth you still hold after a full lunar year. Money spent on living during the year is simply gone and is not zakatable. So it is your savings that matter, not your salary.

Deduct what you owe

Debts and liabilities falling due within the year are deducted from your zakatable assets. This means short-term debts and outstanding bills — not the entire outstanding balance of a long-term mortgage.

The jewellery question

Here the schools genuinely differ, and you should follow your own rather than accept whatever a calculator decides for you:

  • Hanafi — all gold and silver is zakatable, including jewellery worn every day.
  • Maliki, Shafi’i, Hanbali — jewellery in regular personal use is exempt, on the reasoning that it is consumed through use, like clothing.
  • All four agree that gold stored away or held as an investment is zakatable.

The Hanafi view is the majority position across South Asian communities, a large part of the UAE’s Muslim population — so for many families here, that daily-worn jewellery does count. On 100 grams of worn 22K gold, the difference between the two positions is not trivial.

Mixed-karat gold

Convert by purity before applying the rate. 24K is pure, 22K is about 91.6% gold, 21K about 87.5%, and 18K is 75%. So 100 grams of 22K jewellery contains roughly 91.6 grams of pure gold. Use the current market rate, not what you paid — most Gold Souk jewellers will weigh your pieces free of charge.

When it is due

Once your wealth has stayed above the nisab for one complete lunar year, about 354 days. Your Zakat date is the anniversary of when you first crossed the threshold. Many people simplify by choosing a fixed date, often in Ramadan, and calculating on it every year. Consistency matters more than the particular date.

In the UAE, the official channel is the Zakat Fund. This article is general guidance, not a fatwa — for anything complex, ask a scholar.

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Frequently Asked Questions

Which nisab should I use, gold or silver?

Most contemporary scholars recommend silver, because it is the lower threshold and so more people give and more reaches those in need. Others prefer gold as the more stable historical measure. If your wealth sits between the two, the choice decides whether you owe Zakat at all — so ask a scholar you trust.

Do I pay Zakat on my salary?

Not on the salary as it arrives. Zakat is due on wealth you still hold after a full lunar year, so it falls on accumulated savings rather than income. Money spent on living during the year is not zakatable.

Is worn gold jewellery zakatable?

The schools differ. The Hanafi position is that all gold and silver is zakatable including daily-worn jewellery. The Maliki, Shafi'i and Hanbali schools exempt jewellery in regular personal use. All four agree that stored or investment gold is zakatable. Follow your own school.

How do I value mixed-karat gold?

Convert by purity first. 22K is about 91.6% gold, 21K about 87.5%, and 18K is 75%. So 100 grams of 22K jewellery contains roughly 91.6 grams of pure gold. Use the current market rate rather than what you originally paid.

What debts can I deduct?

Debts and liabilities falling due within the year — short-term debts and outstanding bills. You do not deduct the entire outstanding balance of a long-term mortgage.

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