The word زكاة zakat in Arabic is derived from the root word زَكَى (zakaa), which carries the meanings of purification, growth, and increase. Linguistically, zakat signifies something that purifies or causes growth. This aligns with its religious purpose, as zakat purifies a believer’s wealth and soul while fostering social and economic growth within the community.  

In Islamic terminology, zakat is a form of obligatory charity prescribed by Allah. It is one of the five pillars of Islam and is mandated for every eligible Muslim to purify their wealth and assist those in need. 

Allah says in the Qur’an:  "Take [O Muhammad] from their wealth a charity by which you purify them and cause them to grow, and invoke [Allah's blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing." Surah At-Tawbah Ayah 103.

Zakat is defined as a specific portion of wealth, calculated according to Islamic law, that is given to specific categories of people mentioned in the Qur’an. It is obligatory upon Muslims who meet certain conditions, such as possessing wealth above the nisab (minimum threshold). Zakat serves both as an act of worship and as a means to establish social justice by redistributing wealth to help those in need.  

Zakat is due on wealth that meets the following conditions:  

1. Nisab: The wealth must exceed the minimum threshold value.

2. Ownership: The wealth must be fully owned and in the possession of the individual.

3. One Lunar Year: The wealth must have been in the person’s possession for one full lunar year (hawl).

4. Growth: The wealth must have the potential to grow or increase, such as savings, investments, or livestock.  

The rate of zakat is generally 2.5% of the total zakatable wealth, but it varies depending on the type of wealth. Below is an overview of how zakat is calculated according to the four major madhhabs (schools of Islamic jurisprudence):  

1. Hanafi Madhhab:

   • Nisab: Gold (20 mithqal or approximately 87.48 grams) or silver (200 dirhams or approximately 612.36 grams) is used as the standard.

   • Zakat on Gold and Silver: Calculated at 2.5% of the total value.

   • Cash and Trade Goods: Treated like gold and silver, with zakat calculated on their total value.

   • Livestock: Specific rates apply based on the number and type of animals.  

2. Maliki Madhhab

   • Nisab: Similar to the Hanafi madhhab but emphasizes the use of gold as the standard for modern calculations.

   • Livestock: Specific rules apply to camels, cattle, and sheep, with a minimum threshold for each type.

   • Agricultural Produce: Zakat is due at 10% if naturally irrigated and 5% if artificially irrigated.  

3. Shafi’i Madhhab

   • Nisab: Calculated based on gold or silver, with 2.5% zakat due on cash, gold, silver, and trade goods. 

   • Livestock: Zakat is calculated based on specific numbers, such as 40 sheep requiring one sheep as zakat.

   • Crops and Produce: The same rule applies as in the Maliki madhhab, with variations for irrigation methods.

4. Hanbali Madhhab

   • Nisab: Similar to the other madhhabs, with gold and silver as the primary standards.

   • Livestock: Detailed rulings apply, but there are similarities with the Shafi’i and Maliki calculations.

   • Agricultural Zakat: The rate is also 10% for naturally irrigated crops and 5% for artificially irrigated ones.  

Always double check calculations here and on other trusted sites as there is always a possibility of error. 

• ICNA Relief Canada 

• Islamic Relief Canada 

• National Zakat Foundation Canada

Zakat is more than just a financial obligation; it is an act of worship that reflects a Muslim’s faith, submission, and commitment to social justice. By fulfilling this pillar, Muslims purify their wealth, help those in need, and contribute to the prosperity of the entire community. Through zakat, the ideals of compassion, equality, and gratitude are woven into the fabric of Islamic society, ensuring that no one is left behind.  

1. Spiritual Purification: Zakat purifies the soul of the giver from greed and selfishness. It reminds Muslims that their wealth is ultimately a blessing from Allah and encourages gratitude and humility.  

2. Economic Redistribution: Zakat acts as a social safety net, redistributing wealth to alleviate poverty and reduce economic disparity. It ensures that the basic needs of the poor, needy, and other eligible recipients are met. 

3. Strengthening Community Bonds: By giving zakat, Muslims strengthen bonds within their community. It fosters empathy, compassion, and mutual care, creating a sense of unity among the ummah (Muslim community). 

4. Social Justice: Zakat addresses the imbalance between the wealthy and the poor, ensuring that wealth circulates rather than becoming concentrated in the hands of a few.  

5. Divine Blessings: Allah promises immense rewards for those who fulfill their obligation to pay zakat. The Prophet Muhammad (peace be upon him) said, “Charity does not decrease wealth.” (Sahih Muslim) This highlights the concept of barakah (blessings), as Allah increases the wealth of those who give sincerely.  

The Qur’an outlines eight categories of people eligible to receive zakat:

1. The Poor (Al-Fuqara): Those who do not have sufficient means for basic needs.

2. The Needy (Al-Masakin): Those in difficult circumstances but slightly better off than the poor.

3. Zakat Collectors (Amileen): Those appointed to collect and distribute zakat.

4. Those Whose Hearts Are To Be Reconciled (Mu’allafatul Qulub): New Muslims or those inclined toward Islam.

5. Freeing Captives (Riqab): To free slaves or captives.

6. Those in Debt (Gharimeen): Individuals unable to pay their debts.

7. In the Path of Allah (Fi Sabilillah): Those striving for the cause of Allah, including da’wah and education efforts.

8. Travelers (Ibn Sabil): Stranded travelers in need of assistance.