Zakat (obligatory charity on sane adult Muslims) is considered one of the five pillars of Islam. Zakat is such an essential part of our faith that it is mentioned in the Quran multiple times:
So, establish regular Prayer and give regular Charity; and obey the Messenger; that ye may receive mercy” (Quran 24:56).
Zakat is intended to purify your wealth, protect you from sins and evil that stem from greed, and care for the vulnerable and needy in your community.
When Do I Pay Zakat?
Zakat is paid annually. It is due on every lunar year (also known as a hawl) on the day that your wealth exceeded the minimum threshold known as nisab. However, there are specific wealth categories that are due immediately when you receive what’s known as a windfall.
There are two general categories of Zakat-qualified (“Zakatable”) wealth, with two distinct Zakat payment times (see What Requirements Qualify Wealth for Zakat?):
GROWTH WEALTH: This includes currency, gold, silver, business assets, and livestock. The Zakat you pay on these wealth types after 12 full lunar months (354 days) passes on your full ownership of them, counting from the date of acquisition (separately) of each.
HARVESTS / WINDFALLS: You need to pay Zakat immediately on crops, honey, and produce, as well as extracted minerals and discovered treasure, at the time of their harvest.
The Zakat you pay on growing wealth is out of their profit or potential profit. Harvests and windfalls are considered growth and income by themselves, which is why Zakat is due when it is harvested.
For more nuances on when you need to pay Zakat, refer to the Zakat Handbook here.
Is Zakat Paid During Ramadan?
Ramadan is considered an ideal time to pay Zakat because all good deeds are multiplied during this blessed month. However, it is not required to pay in Ramadan. While you must pay Zakat al-Fitr during Ramadan, you may pay your Zakat-al-Mal at other times.
How Do I Calculate My Zakat?
You can easily find out how much Zakat you need to pay by using an online Zakat calculator. Zakat Foundation of America’s Zakat calculator considers your total wealth. It uses up-to-date pricing on assets such as gold and silver.
How Do I Pay My Zakat?
Zakat Foundation of America makes it easy for you to pay your Zakat. You can pay your Zakat online now from the comfort of your home. You can rest assured that your Zakat will be distributed to Zakat-eligible individuals and programs. Just select the Zakat fund option in the Donation form.