What zakat on gold means
Zakat is the obligatory annual charity on wealth that a Muslim owns above a minimum threshold. That threshold is the nisab. Gold and silver are the classical measures of nisab. Gold you own, whether bars, coins or, in many views, jewellery, counts towards zakatable wealth.
Three conditions usually decide whether zakat is due:
- Ownership. The wealth is fully yours, not borrowed or held for someone else.
- Nisab. Your net zakatable wealth reaches the nisab.
- Hawl. The wealth stays at or above nisab for a full lunar (Hijri) year.
When all three are met, zakat is paid at the standard rate on the whole net zakatable amount, not only on the part above nisab. The calculator on this page applies that rate for you.
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Gold nisab in tola and the silver nisab
In Pakistan the nisab is usually quoted in tola, the traditional unit used by jewellers and sarafa markets. The law gives it in grams: the Zakat and Ushr Ordinance defines the nisab as 612.32 g of silver, or cash, gold or trade goods of the same value, and as 87.48 g of gold for a person whose zakatable assets are only gold. The rupee value is notified for each zakat year. Scholars may follow a different figure; if yours does, take it from your scholar or your mosque's zakat committee and enter it in the calculator.
The calculator works in grams. To convert:
- See Tola, masha and ratti for how the units relate to each other.
- Use the Gold tola calculator to convert tola to grams and back.
Gold nisab or silver nisab?
When your wealth is only gold, the gold nisab applies. When you hold a mix of gold, silver, cash, savings and trade goods, many scholars in Pakistan, especially of the Hanafi school, apply the silver nisab to the combined total. The silver nisab is reached at a much lower rupee value, so more people owe zakat under it. Other scholars use the gold nisab for mixed wealth. Ask your scholar which one you should use, because the choice can decide whether zakat is due at all.
How to calculate zakat on gold
- Fix your zakat date. This is the Hijri date when your wealth first reached nisab. Many people use the same Ramadan date every year.
- List your gold by purity. Separate pure gold from each jewellery karat. The gold karat guide explains the difference.
- Weigh it. Use the weight in tola or grams from receipts, or have a jeweller weigh it. Gemstones and non-gold parts are not gold.
- Value it on your zakat date. Use the rate for that purity on that day. Most scholars use the selling value, meaning what a jeweller would pay you, not the shop price that includes making charges. See Making charges and resale and Gold in Pakistan for how prices are quoted.
- Add other zakatable wealth. Silver, cash, bank balances, savings certificates, shares held for trade and business stock.
- Subtract debts due now. Most views deduct debts that are payable soon. Opinions differ on long-term loans.
- Compare with nisab and apply the rate. If the net total is at or above nisab, zakat is due on the whole net amount.
Fill in the empty fields to see the result.
Zakat = rate × (assets − debts) when the net wealth reaches the nisab (grams × price per gram) and a lunar year has passed. Scholars differ on details; follow the opinion you rely on.
Enter your net wealth and the nisab in grams of gold or silver. The calculator shows whether you are above nisab and how much zakat is due. Check the gold or silver rate you enter against your local sarafa market on the zakat date.
Zakat on gold jewellery: the main views
Jewellery is where opinions differ most.
| View | Position on jewellery for personal use | Who commonly holds it |
|---|---|---|
| Hanafi | Zakat is due on gold and silver jewellery, worn or not | Most scholars and families in Pakistan |
| Shafi'i, Maliki, Hanbali (majority view within these schools) | No zakat on jewellery worn regularly in a normal amount; zakat is due on jewellery kept as savings, for trade, or beyond normal use | Followers of these schools |
Points most scholars agree on:
- Jewellery bought as an investment or kept in a locker as savings is zakatable.
- The zakat is due from the owner. If a wife owns her jewellery, it is her zakat. Someone else, such as her husband, may pay it on her behalf with her permission.
- Gold received as dowry (jahez) or as a gift belongs to the person it was given to.
Because the views differ, follow the school you belong to, or ask a scholar you trust when you are unsure.
Common practical questions in Pakistan
- Which rate? Use the rate for your gold's purity on your zakat date. Rates change daily. How gold rate is set explains where local prices come from.
- Silver jewellery is treated the same way as gold jewellery in each school. See Silver rate per tola.
- Tax is separate. Zakat is a religious duty. Income tax and wealth declarations are separate legal matters. See Gold and tax and Payments, tax, Islamic banking.
- Gold in trading accounts. A leveraged gold CFD position is not physical gold you own. Ask a scholar how to treat a trading account balance. Leveraged CFD trading can lose money fast, so the balance can change sharply. Islamic finance covers the related questions.
Frequent questions
What is the gold nisab in tola?
The Zakat and Ushr Ordinance gives it in grams: 87.48 g of gold where your assets are only gold, and 612.32 g of silver otherwise. Convert grams to tola with the Gold tola calculator. The zakat calculator above starts from these figures; if your scholar uses another one, type it in grams.
Is zakat due on gold jewellery I wear?
Under the Hanafi view, which most people in Pakistan follow, yes. The majority view in the other schools exempts jewellery worn regularly in a normal amount. Jewellery kept as savings is zakatable in all the main views.
Do I value gold at the buying or the selling price?
Most scholars use the price a jeweller would pay you for that purity on your zakat date. Making charges are not included.
My gold alone is below nisab. Do I still owe zakat?
You may. If you also hold cash, savings or silver, many scholars combine them and use the silver nisab. The combined total can reach nisab even when the gold alone does not.
Who pays zakat on a wife's jewellery?
The owner. If the jewellery is hers, the zakat is her obligation. Her husband or another family member may pay it for her with her permission.
Does the zakat calculator give a religious ruling?
No. It does the arithmetic for the nisab and figures you enter. The choice of nisab, the treatment of jewellery and the deduction of debts depend on the school and the scholar you follow.