Gold is one of the most important assets to account for when calculating Zakat, yet it is also one of the most commonly overlooked. Many Muslims are unsure whether personal gold jewelry is subject to Zakat or how to determine the value of their gold holdings. This guide explains everything you need to know about paying Zakat on gold.

Is Zakat Due on Gold?

Yes. Gold is one of the original assets on which Zakat was prescribed in Islamic law. The Prophet Muhammad (peace be upon him) specifically mentioned gold and silver as zakatable wealth. However, the four major schools of Islamic jurisprudence differ on some details, particularly regarding personal jewelry.

The Hanafi View on Gold Jewelry

The Hanafi school — which ZakatEasy follows as its default calculation method — holds that all gold is subject to Zakat, regardless of its form or purpose. This includes:

  • Gold jewelry worn daily (rings, necklaces, bracelets, earrings)
  • Gold jewelry stored and not worn
  • Gold coins and bars
  • Gold ornaments and decorative items
  • Gold watches and accessories

Under the Hanafi school, there is no exemption for personal-use jewelry. If you own gold in any form and it meets the Nisab threshold (combined with your other wealth), Zakat is due on its full market value.

Other Schools of Thought

The Shafi'i, Maliki, and Hanbali schools take a different approach to personal jewelry:

  • Shafi'i school: Gold and silver jewelry that is in regular personal use (worn frequently) is not subject to Zakat, provided it is within customary limits for the person's social context. Excessive jewelry beyond what is customary may still be zakatable.
  • Maliki school: Similar to the Shafi'i view — jewelry worn regularly for personal adornment is exempt from Zakat. However, jewelry kept as a store of wealth (not worn) is zakatable.
  • Hanbali school: The predominant Hanbali view also exempts personal-use jewelry from Zakat, though some Hanbali scholars disagree and align with the Hanafi position.

If you follow one of these schools, consult a scholar from your tradition for specific guidance. The safer and more cautious approach, which maximizes benefit to the poor, is the Hanafi position of including all gold.

The Gold Nisab Threshold

The Nisab for gold is 87.48 grams (equivalent to approximately 7.5 tola or about 2.81 troy ounces). If you own gold equal to or exceeding this weight, and one lunar year has passed, Zakat is due at the rate of 2.5%.

However, it is important to understand that the gold Nisab applies to your total wealth, not just your gold holdings alone. If the combined value of your cash, savings, gold, silver, investments, and other zakatable assets exceeds the Nisab, then Zakat is due on all of it — including any gold below the 87.48-gram threshold.

How to Calculate Zakat on Gold

Follow these steps to calculate Zakat on your gold holdings:

Step 1: Determine the weight of your gold. Weigh all your gold items in grams. If you do not have a scale, a jeweler can weigh them for you. Remember to include all pieces — rings, necklaces, bracelets, earrings, coins, and bars.

Step 2: Determine the purity (karat). Gold jewelry comes in different purities. Common values are 24K (99.9% pure), 22K (91.6% pure), 21K (87.5% pure), and 18K (75% pure). Only the pure gold content is zakatable.

Step 3: Calculate pure gold weight.

Pure Gold = Total Weight × (Karat ÷ 24)

For example, if you have 100 grams of 22K gold: 100 × (22 ÷ 24) = 91.67 grams of pure gold.

Step 4: Multiply by current gold price. Use the current market price of 24K gold per gram to determine the monetary value.

Step 5: Calculate 2.5%. Your Zakat on gold equals 2.5% of the total value calculated in Step 4.

Common Gold-Related Questions

Is white gold subject to Zakat?

Yes. White gold is still gold — it is simply alloyed with metals like palladium or nickel for color. Calculate its Zakat based on its gold content (karat).

What about gold-plated items?

Gold-plated items contain negligible amounts of actual gold. If the plating is extremely thin (as in most costume jewelry), it is generally not considered zakatable. However, heavily gold-plated items with significant gold content should be assessed by a jeweler.

Do I pay Zakat on the making charges?

No. Zakat is calculated on the gold value only, not the craftsmanship or making charges. Use the melt value (weight times current gold price), not the retail purchase price.

What if my gold has gemstones?

Gemstones (diamonds, rubies, emeralds) set in gold jewelry are not subject to Zakat according to the majority of scholars, unless they are held for trade. Calculate Zakat only on the gold portion. Have a jeweler estimate the gold weight separately if needed.

Using ZakatEasy for Gold Calculation

The ZakatEasy Calculator makes gold Zakat calculation simple. You can enter your gold holdings by weight (in grams) and the calculator will automatically multiply by the current live gold price. Alternatively, if you already know the monetary value of your gold, you can enter it directly.

The calculator fetches live gold prices daily, ensuring your calculation always reflects the most current market value.

Calculate Your Gold Zakat Now

Enter your gold weight and let our calculator do the rest with live gold prices.

Open ZakatEasy Calculator

Conclusion

Gold is a significant part of many Muslims' wealth, especially in South Asian, Middle Eastern, and Southeast Asian communities where gold jewelry is commonly gifted and collected. Understanding how to calculate Zakat on gold ensures you fulfill your obligation accurately.

When in doubt, follow the safer opinion — include all your gold in your Zakat calculation. This ensures that you have given what is due and benefits those most in need.