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Your Zakat

Silver

Price/g: $
Nisab: $

Gold

Price/g: $
Nisab: $

Calculations Based on Silver Nisab of Grams.
Prices updated daily.

Zakat Calculator

Assets

Assets which are Zakatable are those which have the potential to grow such as those listed below. Note, interest (Riba) is non-zakatable and 100% must be given away.
Cash and liquid investments are subject to Zakat. You should include cash in all your bank accounts, in your wallet and under your mattress! If interest has been earned on your liquid investments, then all of it should be given to charity and only the principal invested amount should be noted for Zakat purposes.
Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat. However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not. If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.
Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat. However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not. If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

In relation to your business, you should include the following as Zakatable assets below where relevant.

  • Cash
  • Goods for Sale* (Wholesale Price or Retail Price)
  • Inventory* (Wholesale Price or Retail Price)
  • Work in progress (at cost)
  • Raw materials (at cost)

*We follow the opinion that Zakat is due upon the wholesale price of your inventory or goods for sale.

What do we mean by Wholesale price? If someone wanted to buy this inventory or your goods in bulk what price would you sell it to them for. This would be liable portion of your Zakat and if you pay lower than this that you are underpaying your Zakat. If however you decide to pay on the Retail price then you are going above the requirement of whats liable and doing ihsaan as many scholars have stated as your Zakat will benefit more people as you are paying more.

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business assets in line with your % ownership of the business.

Scenario 1: Day trading/short-term trading (Less than one lunar year)
Include entire value of your portfolio and pay Zakat on it.

Scenario 2: Long term investments (one lunar year or more)
From the balance sheet of the company (in which you hold shares), use the following formula:
Amount Y = (Cash + Cash Equivalent + Accounts Receivables + Inventory) / Total Number of Shares Issued by Company
Your Zakatable Amount = [(Amount Y) x (Number of shares you own)]
Please note: if you are receiving dividends, please add them to your Zakatable assets.

Scenario 3: Cashing out
Upon cashing out, the amount remaining after taxes and fees is added to your Zakatable assets.

In the case of RRSP you can also deduct withdrawal tax. So you will calculate your Zakat on the net amount.

For example, an RRSP fund contains $100,000.

Should you withdraw today, your withdrawal tax would be 30% of the fund equalling $30,000. Therefore, you will calculate Zakat on $70,000 (RRSP value minus penalties and taxes).

(Please refer to the table below for reference)

Withdrawal Amount Up to $5,000 Between $5,000
and up to $15,000
Over $15,000
Rate of tax withheld for Canadian residents 10% withheld 20% withheld 30% withheld
Rate of tax withheld for the province of Québec 5% withheld 10% withheld 15% withheld

Zakat on RESP = Total RESP Value minus Early Withdrawal deductions

Note: One can do an early withdrawal and withdraw their own contributions without penalty.

For example, if you have a child with a RESP fund containing $12,000 of which you contributed $10,000 and the government contributed $2,000, then you deduct the government contribution from the total (as this would be the penalty for early withdrawal prior to maturity). As a result, you would be liable to pay Zakat on the $10,000.

The house in which you live is not subject to Zakat.

If a property or other fixed asset is purchased with the express intent to resell, then the entire sale value of the property is subject to Zakat.

Remember this rule does not apply to the house you live in yourself. This is for additional properties you may own or possess.

If you don’t have enough cashflow to pay the Zakat due if marked for sale then you should pay Zakat on the property once you have the funds available and Allah knows best.

If it is a rental property then you only have to pay Zakat on the rental income minus the expenses related to the rental income. Remember, you will only pay Zakat on what you currently possess in cash or liquid assets. Whatever has already been spent has no Zakat on it.

If you have no intention with a property or fixed asset then there is no Zakat on it until it falls into one of the other options mentioned above.

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example, if Ali invested $10,000 in a savings product that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received.

If you own an interest-bearing asset, then you are advised to sell the asset, give away the interest money received in charity and use the remaining money in a halal manner.

Zakat is payable on strong debts, i.e. money owed to you that you are confident will be returned back to you. This may include personal loans to friends and family. This does not include outstanding wages, dowry, inheritance or assets held in trust.

If you possess any other cash equivalent or liquid assets that are not mentioned above, please add the dollar value of these here. This could include (but not limited to):

  • The face value of your cryptocurrency holdings
  • Other currencies held in offshore accounts which you did not include above
  • Assets belonging to a family member on whose behalf you are paying Zakat

Liabilities

Any liabilities on Zakatable Assets are called Zakatable Liabilities, and one should deduct their value from their total Zakatable Assets. Certainty has to exist in the liability, for example rent, accounts payable, bills, salaries, etc.

Certain liabilities can be deducted from your Zakatable assets. These include outstanding or overdue living expenses such as rent payments, utility bills and debts.

For long-term debt, such as mortgages or student loans, only the non-interest or principal portion of the upcoming lunar year’s worth of payments can be deducted for Zakat calculation purposes.

If payments are not being paid on the long-term debt, then it should not be deducted from your zakatable assets.

Please include the value of any of the following outstanding/unpaid liabilities that are either due between now and your Zakat due date or overdue payments:

  • Commercial loans that have been used to finance Zakatable assets
  • Rent
  • Utility bills
  • Salary
  • Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

Important: If you find that your business liabilities payable between now and your Zakat due date exceed your business assets, then please omit all business details from your Zakat calculation since this will affect the Zakat that you may owe in a personal capacity.

Please only include business liabilities in line with your % ownership of the business.

Totals

$

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