Zakat on gold is one of the most frequently asked financial obligations in Islam, especially given the widespread use of gold for savings and adornment. Islamic law has clearly outlined its rulings, conditions, and calculation methods to ensure fairness, purification of wealth, and social solidarity.
The Ruling on Zakat of Gold
Zakat on gold becomes obligatory when it reaches the prescribed minimum amount (nisab), is fully owned, and a lunar year has passed over it.
Allah says:
“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, At-Tawbah 9:34)
The Prophet ﷺ said:
“No owner of gold or silver who does not pay its due will escape punishment…”
(Narrated by Muslim)
The Nisab of Gold
The nisab is the minimum amount of wealth upon which zakat becomes due.
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The nisab of gold is 20 dinars,
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which equals approximately 85 grams of pure gold (24 karat).
If a person owns this amount or more and a full lunar year passes, zakat becomes obligatory.
The Amount of Zakat Due
The zakat on gold is:
One-quarter of one-tenth (2.5%)
In other words, one part out of forty.
How to Calculate Zakat on Gold
To calculate zakat on gold, follow these steps:
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Determine the total weight of the gold owned in grams.
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Ensure it reaches the nisab (85 grams of pure gold).
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Consider the purity (karat):
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24K gold: full weight is counted.
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21K or 18K gold: purity may be adjusted if calculated precisely.
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Apply the zakat rate (2.5%).
Example:
If a person owns 100 grams of pure gold:
100 × 2.5% = 2.5 grams of gold as zakat
or its equivalent cash value based on the gold price at the time of payment.
Zakat on Gold Used for Jewelry
Scholars differ regarding zakat on gold used as jewelry:
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Majority opinion (Maliki, Shafi‘i, Hanbali):
No zakat is due on permissible gold jewelry used regularly, if not intended for savings. -
Hanafi opinion:
Zakat is obligatory on gold regardless of its use, whether for adornment or storage.
To be on the safe side, many scholars recommend paying zakat on jewelry if it reaches the nisab.
Paying Zakat in Gold or Cash
It is permissible to:
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Pay zakat from the gold itself, or
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Pay its cash equivalent, calculated according to the market price at the time of payment.
Paying in cash is often more practical and common today.
Time of Paying Zakat on Gold
Zakat becomes due when:
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The gold reaches the nisab, and
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A full lunar year has passed since reaching it.
Delaying zakat without a valid excuse is not permissible.
Important Reminder
Muslims should:
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Be accurate in calculation,
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Seek scholarly advice when uncertain,
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Remember that zakat is an obligatory right, not a voluntary charity.
Allah says:
“Take from their wealth a charity by which you purify them and cause them increase.”
(Qur’an, At-Tawbah 9:103)
Summary
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Nisab of gold: 85 grams of pure gold
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Zakat rate: 2.5%
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Due after one lunar year
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May be paid in gold or cash
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Paying zakat on jewelry is safer if the amount is significant
