What is Zakat?

Lexically meaning "increase, growth, purity, abundance,good state,and praise," zakat is a religious term referring to the allocation of a specific portion of one's wealth for the sake of Allah to designated recipients. As one of the financial acts of worship, zakat is among the five fundamental pillars of Islam and was made obligatory in Medina in the second year of the Hijrah.

 

 

"And establish prayer and give zakat..." (Al-Baqarah, 2/43, 110; Al-Hajj, 22/78; An-Nur, 24/56; Al-Mujadila, 58/13; Al-Muzzammil, 73/20); "Take, [O Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing." (At-Tawbah, 9/103)

 

 

Conditions of Obligation for Zakat

For a person to be obligated to give zakat, they must be a Muslim, free, sane, and having reached puberty; in addition to being free of debt and having basic necessities met, they must possess a nisab amount of wealth that is actually or constructively productive, meaning it has the capacity to generate gain or profit.

 

 

Meaning and Amount of Nisab

Nisab is a measure of wealth established for acts of worship such as zakat, sadaqat al-fitr, and sacrifice (qurban), and can also be defined as the minimum threshold of wealth.

 

A person who owns this amount of wealth, beyond their debts and basic necessities, is considered wealthy according to religion.

The nisab amounts determined in the hadiths can be listed as follows: 80.18 grams of gold or its equivalent in cash or trade goods; 40 sheep or goats, 30 cattle, 5 camels. It is clear that these assets used to determine the nisab amount were the most widespread instruments of wealth of that era. The determination of nisab through these assets was preserved identically in later periods when social and economic conditions did not change significantly.

 

 

Havâic-i asliyye refers to material assets that fulfill essential needs and are therefore exempt from zakat. In Islam, as with other physical and financial obligations, the taxpayer's situation is taken into account, imposing a reasonable and bearable responsibility upon them. For this reason, Islamic scholars have stipulated that in order to be obligated to pay zakat and sadaqat al-fitr, a person must possess a nisab amount of wealth in excess of their basic necessities. This is because basic necessities do not create prosperity and wealth; the amount of property allocated for basic needs is merely what is essential for a person to survive.

 

 

Allah the Almighty states in the Quran, "And they ask you what they should spend. Say, 'The excess [beyond needs]...'" (Al-Baqarah, 2/219). In a related hadith, it is narrated: "A man came to the Prophet (pbuh) and said, 'I have one dinar, what should I do?' The Prophet replied, 'Spend it on yourself.' The man said, 'I have another dinar.' The Prophet said, 'Spend it on your family.' The man said, 'I have another dinar.' The Prophet said, 'Spend it on your children.' When the man said, 'I have another dinar left,' the Prophet replied, 'You know best.'" (Abu Dawud, Zakat, 45).

 

Basic necessities are the things a person needs to protect their life and freedom. Generally, these include items such as sustenance, a residence, household goods, necessary clothing, property held against debt, tools and machinery belonging to a profession or trade, vehicles, and books acquired for the pursuit of knowledge. Essentially, essential needs change and evolve with shifts in time, environment, and circumstances. What matters here is the basic needs of the taxpayer obligated to give zakat. Along with their personal needs, the needs of other individuals whom they are legally obligated to support are also included.

 

 

 

 

Zakat on Tools, Equipment, and Materials

Tools, machinery, and materials necessary for the performance of a craft or profession are considered basic necessities, and it is not required to pay zakat on them. However, if tools, materials, and machinery are produced, bought, or sold for trade rather than for the execution of one's own profession, it is obligatory to pay zakat on them.

 

 

Can Zakat Be Paid Before Its Due Time?

 

As with fasting and the pilgrimage (hajj), the lunar calendar is applied regarding zakat. For zakat to become obligatory, a full lunar year must pass over the nisab amount of wealth. Despite this, if property owners wish, they can pay their zakat before its due time arrives. Unpaid zakats from the past can be paid immediately, and it is also permissible and appropriate to pay future zakats in advance if there is a place or recipient in critical (great) need.

 

 

Can a wealthy person give a promissory note for a term receivable to a poor person as zakat?

 

Zakat can be given in kind, such as food and clothing, or in cash, such as money, foreign currency, and gold. A promissory note, on the other hand, is a document drawn up between two or more parties specifying to whom a right, property, or borrowed money belongs; therefore, it represents the amount of money written on it. For this reason, a wealthy person who is liable to pay zakat can endorse a promissory note to a poor person in lieu of their zakat, provided they know with certainty that it will be paid when due.

 

 

Can zakat be paid in installments?

 

The fundamental rule is for a person to pay the zakat that has become incumbent upon them. Accordingly, zakat can be paid all at once, or it can be paid in installments.

 

 

Is there a specific time for giving zakat?

 

There is no specific set time for giving zakat, and it must be paid as soon as it becomes obligatory. Therefore, there is no need to wait for a specific month or Ramadan. However, it is appropriate for those who are obligated to pay zakat to do so as soon as possible from the moment they become liable.

 

 

 

Can zakat on trade goods be paid in kind?

 

Zakat on trade goods can be paid in cash, calculated based on the value of the goods, or it can be paid in kind using the goods themselves.

 

How is the zakat on trade goods calculated?

 

Zakat is a financial act of worship that must be paid from the existing capital, not from potential future profits. Accordingly, when calculating the zakat on trade goods, the value at the date the zakat is paid—excluding profit—must be taken as the basis.

 

How is zakat paid on receivables?

 

Receivables that are certain to be repaid must have their zakat paid by the creditor every year. If the zakat has not been paid before the receivable is collected, the zakat for past years must also be paid after collection. Receivables that are denied or have no likelihood of being recovered do not require zakat to be paid every year. If such a receivable is paid later on, the creditor becomes liable for zakat only from that date onward and does not pay zakat for the past years.

 

Is it required to pay zakat on agricultural produce?

 

Any kind of produce obtained from the land—except for wood, reeds (excluding sugarcane), and grass—is subject to zakat if it reaches the nisab threshold (approximately 650 kg). The Almighty Allah states, "O you who have believed, spend from the good things which you have earned and from that which We have produced for you from the earth..." (Al-Baqarah, 2/267); and "And He it is who causes gardens to grow, [both] trellised and untrellised, and palm trees and crops of different [kinds of] food and olives and pomegranates, similar and dissimilar. Eat of [each of] its fruit when it yields and give its due [zakat and charity] on the day of its harvest. And be not excessive. Indeed, He likes not those who commit excess." (Al-An'am, 6/141).

 

Proportion of Zakat on Agricultural Produce

 

The Prophet (pbuh) also stated, "On crops watered by rain and rivers, there is a tenth (10%); and on those irrigated by water-drawing devices (buckets or wells), there is a twentieth (5%)." (Bukhari, Zakat, 55).

 

Hadiste de belirtildiği gibi, mahsulün zekâtının verilmesinde toprağın işlenmesi ve su kullanımı esas olarak alınmaktadır. Buna göre toprak emek sarf edilmeden yağmur, nehir, dere, ırmak ve bunların kanallarıyla sulanıyorsa, çıkan mahsulün 1/10’i; kova, dolap gibi emekle veya suyun ücretle alınması, motorla sulama gibi masraf gerektiren bir yolla sulanıyorsa 1/20’i zekât olarak verilir.

 

 

Basis of Zakat on Agricultural Produce

 

As mentioned in the hadith, the cultivation of the land and the method of irrigation are taken as the basis for giving the zakat on agricultural produce. Accordingly, if the land is irrigated without any labor or extra expense—such as by rain, rivers, streams, and their canals—then 1/10 (10%) of the harvested produce is given as zakat. If it is irrigated through methods that require labor, equipment, or expense—such as buckets, water wheels, paid water, or motor-driven irrigation—then 1/20 (5%) is given as zakat.

 

 

 

Are production expenses taken into account when giving ushr (agricultural zakat)?

 

Today, expenses such as fertilizer, fuel (diesel), and labor constitute a significant portion of production costs. Therefore, in the zakat of agricultural products, after deducting the extra expenses brought by modern agricultural conditions made for the product from the gross yield obtained, if the remaining product reaches the nisab amount, zakat must be given at a rate of 1/10 (10%) for land irrigated naturally, and 1/20 (5%) for land irrigated with expense or labor, such as buckets, pumps, or water motors.

 

 

 

Who is responsible for paying the zakat (ushr) on the produce of a jointly cultivated field?

 

The zakat on agricultural produce is paid by the owner of the crop, not the owner of the land. Accordingly, if the landowner gives their field to someone else to cultivate without expecting any return, the person who cultivates and harvests the crop pays its zakat. If the land is rented for cultivation for a specific fee, the zakat (ushr) is paid by the tenant. If the land is leased through sharecropping (müzâraa), both the landowner and the cultivator pay the zakat separately on their respective shares of the produce.

 

 

Is it necessary to pay ushr on damaged or lost produce?

 

A farmer whose crop is destroyed or lost while still in the field is not required to pay zakat on it. However, once the crop has been harvested, the obligation of ushr (agricultural zakat) becomes fixed upon the person; therefore, even if the produce is lost or ruined after the harvest, its zakat must still be paid.

Indeed, the Almighty Allah states, "And give its due [zakat and charity] on the day of its harvest." (Al-An'am, 6/141).

 

Can the monetary value of animals be given instead of the animals themselves for zakat?

 

The zakat on wealth can be paid in the same kind of property, or it can be given in certain other prescribed forms. Accordingly, a person who wishes to pay the zakat on livestock may give the animals of the same kind, or they may pay their monetary value instead. However, it is more appropriate to choose the option that is most beneficial to the poor recipient.

 

How is zakat paid on trade goods?

 

Goods that are bought and sold for the purpose of making a profit are called "trade goods." A person who possesses trade goods equal to the value of 80.18 grams of gold is required to pay zakat at a rate of one-fortieth (2.5%) upon the completion of one lunar year since acquiring them.

 

Is zakat required on jewelry and ornaments?

 

Ornaments and jewelry made of materials other than gold and silver are not subject to zakat. According to the majority consensus—which includes the Shafi'i, Maliki, and Hanbali schools—women's personal jewelry and ornaments are considered part of their basic essential needs and are exempt from zakat. However, according to the Hanafi school, if a woman's gold or silver jewelry and ornaments reach the nisab threshold (80.18 grams of gold or its equivalent value), paying zakat on them becomes obligatory.

 

Are real estate agents obligated to pay zakat on the apartments they own?

 

Apartments bought and sold for commercial purposes by real estate agents are subject to zakat. Accordingly, apartments held in inventory for resale—rather than for office use or personal residence—are subject to a one-fortieth (2.5%) zakat rate, provided their net value (after deducting debts) reaches the nisab threshold and one lunar year has passed.

 

How do company partners pay zakat?

 

A partner in an active company is required to pay zakat on their share of the company's current (circulating) assets—excluding fixed assets such as offices, tools, and machinery—provided that their share reaches the nisab threshold and one lunar year has passed.

For companies operating in the industrial and commercial sectors:

Exemptions: Fixed assets (production equipment, machinery, facilities) are exempt from zakat.

Deductions: Debts and operating expenses (materials, labor, production, marketing, management, financing costs) are deducted from the gross assets.

Taxable Assets: Circulating assets (raw materials, semi-finished goods, finished inventory, cash, checks) combined with net profits are subject to zakat at a rate of $1/40$ (2.5%).

 

Who is eligible to receive zakat?

 

The recipients of zakat and fitrah are explicitly designated in the Holy Quran (Surah At-Tawbah, 9/60). They are: the poor, the needy, those working to free captives, those overburdened with debt, those striving in the way of Allah, stranded travelers, officials appointed to collect zakat, and those whose hearts are to be inclined toward Islam (mu'allafah al-qulub).

 

Who is not eligible to receive zakat?

 

It is not permissible to give zakat and fitrah to individuals and institutions other than those enumerated in verse 60 of Surah At-Tawbah. Furthermore, even if a person meets these criteria, zakat cannot be given to: one's mother, father, grandmothers, and grandfathers; nor to one's children, grandchildren through sons or daughters, and their descendants.

 

Can zakat and fitrah be given to charitable institutions?

 

There is no religious objection to giving zakat and fitrah to associations, institutions, and mutual aid funds managed by trustworthy individuals who are known to collect the zakat and fitrah they receive in a fund and spend them exclusively on the recipients specified in verse 60 of Surah At-Tawbah. Charitable institutions are also obligated to distribute the amount of zakat they receive from donors to those in need as zakat.

 

Can zakat be given to wage earners (salaried employees)?

 

In Islam, the rules regarding who can and cannot receive zakat and fitrah are clearly defined, regardless of a person's social class or profession. Accordingly, zakat can be given to individuals who, despite having a regular income, cannot meet their minimum basic needs with that income and possess no other assets.

 

How does a person with gold of different karats calculate their zakat?

 

Differences in the karat (purity) of gold do not affect its obligation for zakat, because regardless of its karat, it is legally considered gold. Accordingly, all types of gold—even if they are of different karats—are subject to zakat, provided they reach the equivalent value of 80.18 grams of 22-karat gold either on their own or when combined with gold of other karats, and provided the other conditions for zakat are met. In this case, the zakat on gold of various karats is calculated based on their total monetary value and is paid at a rate of 2.5% (one-fortieth).

 

Is zakat required on earnings obtained through illegitimate (unlawful) means?

 

If the rightful owner of earnings obtained through illegitimate means is known, these earnings must be returned to their owner. If the owner is not known, they must be disposed of by giving them to the poor or to charitable institutions without expecting any divine reward (savap). Consequently, since the entirety of earnings acquired through unlawful means must be disposed of either by returning them to the owner or by spending them in charitable ways, paying zakat on them is out of the question.

 

 

 

Is money saved for basic needs subject to zakat?

 

Basic needs (asli needs) include necessities required for a safe and healthy life, such as housing, household goods, clothing, transportation, and food. There is no strict requirement to own these items outright to fulfill such needs.

If savings have been accumulated for these purposes and a verbal or written commitment (contract or binding agreement) has already been made to acquire them, then zakat is not required on these funds. This is because once committed through a binding agreement, the money is legally considered already spent on basic needs.

However, if the saved money has not been tied to such a commitment, it is subject to zakat at the rate of 2.5% provided that it reaches the nisab threshold and a full lunar year passes over it.

 

Is zakat required on the wealth of a wealthy child who has not reached puberty?

 

Individuals who lack sound mind or have not yet reached the age of puberty are not legally responsible under Islamic law and are thus not directly accountable for paying zakat. However, because the wealth of the wealthy contains a rightful share for the poor, a guardian or custodian must pay zakat on behalf of wealthy minors and persons with mental disabilities, even though they are not personally obligated. Indeed, the Holy Quran states, "And in their wealth there is a rightful share for the beggar and the deprived." (Adh-Dhariyat, 51/19).

 

Is a person who lives with their father obligated to pay zakat?

A person living with their father is obligated to pay zakat if they possess separate wealth belonging strictly to them and meet the necessary conditions for zakat. However, if they have not separated their property from their father's and instead earn and spend jointly, then the person who holds the ultimate authority to dispose of and manage these pooled savings is responsible for paying the zakat.

 

Does paying taxes replace zakat?

Taxes are a civic duty, whereas zakat is a religious obligation. Furthermore, zakat and taxes differ significantly in their source of enforcement, primary purpose, rates, quantities, and designated places of expenditure. Consequently, taxes paid to the state do not substitute for zakat, and zakat must be paid separately.

 

Can zakat be paid via bank transfer (wire transfer)?

Zakat can be delivered personally by hand, or it can be paid through a proxy (agency) or bank transfer. The essential requirement is that the zakat funds successfully reach an eligible recipient.

 

 

 

Can zakat be given to a stepmother, stepfather, and stepchildren?

Zakat can be given to a stepmother if her husband (the person's father) has passed away, and to stepchildren and a stepfathers if they have reached puberty and left the household, provided that they are poor. This is because there is no direct ancestral or descendant (usul and furu) blood relationship between them and the person giving zakat, nor is the person obligated to financially maintain them.

 

Can zakat be given to a son-in-law and a daughter-in-law?

Zakat can be given to a son-in-law if he is poor. Because a husband is legally and financially obligated to maintain his wife, giving zakat to a daughter-in-law is functionally equivalent to giving zakat to one's own son. Therefore, it is not permissible or appropriate to give zakat to a daughter-in-law.

 

What should be done if it turns out that a person who was given zakat is actually wealthy?

 

A zakat payer must investigate the recipient before giving zakat. If, after due diligence, the payer reasonably believes the recipient is eligible and gives the zakat, but it later turns out that the person was actually ineligible (wealthy), the zakat remains valid.

If the payer gives zakat without conducting any prior investigation, two scenarios apply:

Eligible Recipient: If it is later discovered that the person was indeed eligible, the zakat is valid.

Ineligible Recipient: If it is found that the person was not eligible, the zakat is invalid, and the payer must pay it again.

 

Can zakat be given to a mother-in-law and father-in-law?

Zakat can be given to a mother-in-law and a father-in-law if they are poor, because they are not among the individuals whom a person is legally obligated to financially support.

 

Is zakat considered the "dirt" or "impurity" of wealth?

 

Zakat is sometimes explained incorrectly. Assertions that it is the "dirt" of a wealthy person's property meant to purify it and that it is somehow impure are contrary to the Quran and Islamic principles. Zakat is the rightful share of the poor, and it must be distributed to the individuals and places designated in the Quran.

Moreover, the Quran states: "And in their wealth there is a rightful share for the beggar and the deprived." (Adh-Dhariyat, 51:19-24).

 

In Islam, the most pure thing is that which is rightful (haqq). How ugly and absurd it is to call something that is a right "dirt"! If the recipient is genuinely poor, zakat is the cleanest and most lawful thing possible. A person who does not pay zakat is consuming unlawful property (haram) because they are eating the rightful share of the poor, thereby mixing unlawful elements into their own wealth.

 

When a wealthy person pays zakat, they are separating what rightfully belongs to someone else, thus rescuing their wealth from the unlawful (haram).

It is from this perspective that the wealth is purified—not because the zakat given is the "dirt" of their wealth. No wealthy person has the right to claim that zakat is being unjustly taken from them.