What Is Zakat and How Is It Calculated?

21 June 2026 · gndzlp · ~7 min read

Zakat is one of the five pillars of Islam and a financial act of worship. Linguistically it means "growth, purification and blessing"; as a technical term, it is the giving of wealth above a certain threshold (nisab), once a year, by those who meet the conditions, to people in need. In this article we look at who is obliged to pay zakat, the concept of nisab, and how zakat is calculated on different types of wealth, with clear examples.

Note: This article is for general guidance only. For rulings specific to your situation, please consult a qualified scholar or a reliable religious authority such as Turkey's Diyanet.

Who is obliged to pay zakat?

For zakat to become obligatory, a person is expected to be Muslim, free, of sound mind and to have reached the age of maturity; they must also own wealth that, beyond their basic needs and debts, reaches the nisab threshold. A full year (hawl) according to the lunar calendar must have passed over this wealth.

What is nisab?

Nisab is the minimum measure of wealth at which zakat becomes obligatory. In classical fiqh, nisab is set as follows:

• Gold: 20 mithqal, that is, approximately 80.18 grams of gold
• Silver: 200 dirhams, that is, approximately 561 grams of silver

For zakat on cash, trade goods and savings, the gold nisab is generally taken as the basis. In other words, if the value of your total savings reaches the current equivalent of 80.18 grams of gold and a full year has passed over it, zakat comes into play.

What is the zakat rate?

For cash, gold, silver and trade goods, the zakat rate is one-fortieth, that is, 2.5%. In other words, for wealth that reaches the nisab and remains for one year, 1 unit out of every 40 is given as zakat.

Example calculation (cash/savings)

Suppose that for a full year you held savings exceeding the value of 80.18 grams of gold, totaling the equivalent of 100,000 TL. If, after deducting your debts, the remaining amount is still above the nisab:

This amount is given to the poor, the needy and the other categories listed in the Qur'an (Surah at-Tawbah, verse 60).

Zakat on trade goods

Trade goods held with the intention of buying and selling are also subject to zakat. At the end of the year, the current market value of the trade goods in hand is calculated, any cash and receivables are added, debts are deducted; if the remaining amount exceeds the nisab, 2.5% zakat is paid. An important principle here is this: hoarding goods and selling them at exorbitant prices during scarcity (ihtikar) is not approved; barakah lies in lawful and fair earnings.

Zakat on crops (ushr)

For agricultural produce, zakat is known as "ushr," and the rate varies according to the method of irrigation:

• For crops irrigated by rain, rivers or natural means: one-tenth (10%)
• For crops irrigated through labor/expense (buckets, pumps, purchased water): one-twentieth (5%)

This nuance shows that labor and cost are taken into account: a lower rate is asked of the farmer who incurs greater expense.

Zakat on livestock

For animals such as sheep, cattle and camels that reach a certain number and graze on pasture for most of the year, there are separate nisab thresholds and rates. For example, the nisab for sheep is 40 head; for a flock of 40-120, one sheep is given as zakat. Since these calculations become detailed according to the type of animal, it is appropriate for herd owners to consult a qualified scholar.

Why is zakat important?

Zakat is not merely a tax; it is an act of worship that purifies wealth and brings it barakah. It prevents wealth from accumulating in the hands of a narrow group, looks after those in need, and strengthens solidarity within society. Regarding the act of "giving" as just as valuable as "accumulating" is one of the distinctive features of Islamic economics.

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