AL-HISAB

Understanding Nisab for Precious Metals

Zakat is obligatory on gold and silver once they reach a specific weight (Nisab) and have been in your possession for one lunar year. In 2026, with fluctuating market prices, it's vital to use live rates.

Gold Nisab: 87.48 grams (approx. 7.5 Tolas).
Silver Nisab: 612.36 grams (approx. 52.5 Tolas).

What about Jewelry?

According to the Hanafi school, all gold and silver jewelry (worn or stored) is subject to Zakat if it exceeds the Nisab. Other schools of thought vary, but for total purification, many scholars recommend paying on all holdings.

Is Crypto Subject to Zakat?

Most contemporary Shariah councils have ruled that digital assets like Bitcoin, Ethereum, and Stablecoins are considered "Maal" (wealth) and are subject to Zakat at a rate of 2.5%.

How to Calculate?

You must calculate the Zakat based on the market value of your coins on your "Zakat Anniversary" date. If you are a long-term holder, you pay 2.5% on the total portfolio value if it meets the Nisab of silver.

Trading vs. Long-term Investment

If you trade stocks frequently, Zakat is due on the full market value of the shares. If you are a long-term investor, Zakat is only due on the "Zakat-able assets" of the company (cash, receivables, and inventory).

Business Inventory

For business owners, Zakat is calculated on the cost price of the goods intended for sale. Raw materials and finished goods both count towards your Zakat-able total.

Personal Property vs. Investment

Your primary residence (the house you live in) is exempt from Zakat. However, property bought with the intention to resell (Flip) is subject to 2.5% Zakat on its current market value.

Rental Income

If you own a property for rental income, Zakat is not due on the value of the building itself, but it IS due on the rental income you have saved at the end of your Zakat year.