Complete Guide to Zakat During Ramadan 2026

As Ramadan 2026 approaches, millions of Muslims around the world prepare to fulfill one of Islam's most important financial obligations: Zakat. Whether you are calculating Zakat for the first time or reviewing your obligations for the year, this comprehensive guide will walk you through everything you need to know.

Understanding Zakat: The Third Pillar of Islam

Zakat is the third pillar of Islam, an obligatory form of charity that purifies one's wealth and supports those in need. The word "Zakat" itself comes from the Arabic root meaning "purification" and "growth." By giving a portion of your wealth, you purify what remains and invite blessings upon it.

"Establish prayer and give Zakat, and whatever good you put forward for yourselves, you will find it with Allah."

Quran 2:110

Zakat is not merely a tax or donation. It is an act of worship that acknowledges that all wealth ultimately belongs to Allah, and that we are its custodians. The obligation to pay Zakat appears over thirty times in the Quran, often mentioned alongside Salah (prayer), highlighting its importance in the life of a Muslim.

Why Ramadan Is a Special Time for Zakat

While Zakat is not specifically required during Ramadan, many Muslims choose this blessed month to fulfill their obligation. The Prophet Muhammad (peace be upon him) was known to be exceptionally generous during Ramadan.

Scholars from all major schools of thought agree that good deeds performed during Ramadan carry greater reward. Many Muslims align their Zakat anniversary (hawl) with Ramadan for this reason, choosing to calculate and distribute their Zakat during this month.

However, it is important to understand that Zakat can be paid at any time of the year. What matters is that one full lunar year (hawl) has passed since your wealth first reached the Nisab threshold.

Who Must Pay Zakat?

Zakat is obligatory upon every Muslim who meets the following conditions:

• Muslim — Zakat is an obligation specific to Muslims.
• Adult and sane — According to the Hanafi school, children and those who are mentally incapacitated are exempt. However, the Shafi'i, Maliki, and Hanbali schools hold that Zakat is due on the wealth of minors as well, to be paid by their guardians.
• Possesses wealth above the Nisab — Your net zakatable wealth must meet or exceed the minimum threshold (Nisab).
• One lunar year has passed — The wealth must have been held above the Nisab for one complete lunar year (hawl).

What Is the Nisab Threshold in 2026?

The Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. According to the Hanafi school of thought, the Nisab is based on the value of 87.48 grams of gold (equivalent to 7.5 tola or approximately 3 troy ounces).

Because gold prices fluctuate, the Nisab in your local currency changes regularly. ZakatEasy uses live gold prices to calculate the current Nisab automatically. You can check the current Nisab value on our Zakat Calculator homepage, which updates daily.

Some scholars use the silver standard (612.36 grams of silver) instead. The silver standard typically results in a lower Nisab, meaning more people would be required to pay Zakat. The Hanafi school traditionally recommends using whichever standard benefits the poor more.

What Assets Are Subject to Zakat?

Cash and Bank Savings

All cash on hand, money in checking accounts, savings accounts, and fixed deposits is zakatable. This includes any currency, whether physical or digital. If you have money in multiple bank accounts, combine them all for your total.

Gold and Silver

All gold and silver you own is subject to Zakat, regardless of form — jewelry, coins, bars, or ornaments. The Hanafi school requires Zakat on all gold and silver, including personal jewelry worn daily. Other schools may exempt jewelry in regular use. For details, see our guide to Zakat on gold.

Investments and Stocks

Stocks, mutual funds, ETFs, and other investment instruments are zakatable at their current market value on your Zakat calculation date. For stocks held for trading, the full value is zakatable. For stocks held long-term, scholars differ on whether to pay on the full value or only on dividends received.

Business Inventory

Goods purchased for the purpose of resale are zakatable at their current market value. This includes merchandise, raw materials intended for trade, and any goods acquired with the intention of selling for profit. Fixed business assets like machinery, buildings, and vehicles used for business operations are exempt.

Rental Income and Receivables

Rental income that has been received and is in your possession is zakatable as part of your cash holdings. Money owed to you (receivables) that you reasonably expect to collect may also be included in your zakatable wealth.

What Is NOT Subject to Zakat?

Not all wealth is zakatable. The following are generally exempt from Zakat:

• Primary residence — The home you live in is not subject to Zakat, regardless of its value.
• Personal vehicle — Cars, motorcycles, and other vehicles for personal use are exempt.
• Household items — Furniture, appliances, clothing, and personal effects are not zakatable.
• Tools of trade — Equipment, machinery, and tools you use to earn a living are exempt.
• Debts owed — Outstanding debts you owe can be deducted from your total zakatable wealth.

How to Calculate Your Zakat Step by Step

Follow these five steps to calculate your Zakat accurately:

Step 1: List all your zakatable assets. Add up your cash, bank savings, gold and silver (at current market value), investments, business inventory, and any other zakatable wealth.

Step 2: Calculate your total liabilities. Add up your immediate debts, outstanding bills, and any short-term loans due.

Step 3: Calculate your net zakatable wealth. Subtract your total liabilities from your total assets:

Net Wealth = Total Assets − Total Liabilities

Step 4: Compare with the Nisab. If your net wealth equals or exceeds the current Nisab threshold, Zakat is due.

Step 5: Calculate 2.5%. Multiply your net zakatable wealth by 0.025 (2.5%):

Zakat = Net Wealth × 2.5%

Example: Suppose your total assets are $60,000 (including $5,000 cash, $15,000 savings, $10,000 in gold, and $30,000 in investments). Your debts total $8,000. Your net wealth is $52,000. If the current Nisab is $14,500, you qualify. Your Zakat would be $52,000 × 2.5% = $1,300.

Where to Pay Your Zakat

Zakat must be distributed to eligible recipients as defined in the Quran (9:60). These include the poor (al-fuqara), the needy (al-masakin), Zakat administrators, those whose hearts are to be reconciled, freeing captives, those in debt, in the cause of Allah, and the wayfarer.

The most reliable way to ensure your Zakat reaches eligible recipients is through established Islamic charities that follow strict Sharia guidelines. Some of the most reputable organizations include Islamic Relief, Zakat Foundation of America, and ICNA Relief.

For a detailed comparison of trusted charities, see our Best Islamic Charities for Zakat 2026 guide.

Common Mistakes to Avoid

Many Muslims unknowingly make errors when calculating their Zakat. Here are a few to watch out for:

• Forgetting gold jewelry — Under the Hanafi school, all gold is zakatable, including daily-wear jewelry.
• Not including investments — Stocks, mutual funds, and retirement accounts (if accessible) are often overlooked.
• Confusing Zakat with Fitrana — These are two separate obligations with different amounts and timing.
• Using outdated Nisab values — Gold prices change frequently. Always use current values.
• Not deducting legitimate debts — Immediate debts and unpaid bills should be subtracted from your assets.

For a full list, read our detailed article on common Zakat mistakes during Ramadan.

Conclusion

Zakat is a profound act of worship that purifies our wealth and supports those most in need. As Ramadan 2026 approaches, take the time to carefully assess your financial situation, calculate your Zakat accurately, and distribute it to worthy causes.

Remember: the Prophet Muhammad (peace be upon him) said that wealth does not decrease through charity. By fulfilling your Zakat obligation, you are not only obeying a divine commandment but also investing in your own spiritual growth and the well-being of the Ummah.

"Take from their wealth a charity by which you purify them and cause them increase."

Quran 9:103