In brief
When the wealth or asset you are paying zakat on is a form of currency, whether it is personal or business wealth, you must pay zakat on it in cash at a rate of 2.5% of its total amount, if its value equals or exceeds its nisab threshold (85 grams of gold), an Islamic lunar hijri year has passed on it, and you are its sole owner.
You can also pay your zakat in cash at a rate of 20% for treasure troves (rikaz) — windfalls of wealth that come to you from hidden natural resources or discovery, if its value equals or exceeds its nisab threshold (85 grams of gold), and you are its sole owner. Zakat on this wealth-type is paid immediately, as soon as it comes to you. A hijri lunar year does not have to pass with it in your possession.
What kinds of wealth do you not pay cash for its Zakat?
If you have the wealth-types of zakatable livestock or agricultural produce, you pay its zakat in-kind upon harvest. (See Is Zakat Due on All Wealth? and also What Requirements Qualify Wealth for Zakat?).
Here is a zakat table for cattle kinds common to many farmers:
You can read more about zakat on different wealth-types, including crops, in detail in How Is Zakat Calculated on Wealth?
What kinds of wealth count as cash for zakat?
Money, pension plans, 401Ks, all forms of retirement accounts, stocks, bonds, life insurance policies, investments, cryptocurrencies; gold, silver, precious metals; and, in general, all forms of stores of value count as cash.
Is zakat on personal and business cash added together?
If your personal cash wealth and business cash wealth both separately add up to nisab, the currency value of 85 grams of gold, you add them together and pay zakat on the total.
If your personal cash wealth and business cash wealth do not separately reach nisab, you add them together. If they total the nisab value for cash, you pay zakat on the total.
If any kinds of cash wealth you have in any form, separately or together, reach or exceed nisab for cash, you pay zakat on their total sum. For more details about restrictions on retirement accounts and zakat calculation see Is Zakat Owed on 401K Plans and Individual Retirement Accounts. For Cryptocurrencies and Zakat calculation go here
What is the Zakat rate on cash?
The cash zakat rate is 2.5%, as set by the Prophet, on him be peace.
How do I calculate nisab for my cash Zakat?
Total all your monetary equivalent forms of wealth together to see if your “cash” reaches Zakat’s nisab threshold. Here’s the formula:
Gold price per gram US$ x 85 grams = Nisab (MOST PRECISE)
Gold price per troy ounce US$ x 2.73295 t oz = Nisab
Here are the nisab equations based on current price per measure (22 Dec 2022 3:25 a.m. CST):
$57.61 (gold price per gram) x 85 gm = $4,896.85
$1,648 (gold price per troy oz) x 2.73295 t oz = $4,897.44 See Nisab and Zakat Calculation in a Nutshell for more calculation details. For a more thorough explanation of Zakat calculation, see How Is Zakat Calculated on Wealth? To calculate your Zakat payment today, use our Zakat calculator here.