16 Jan 2025
Zakat on Cash at Home
Cash kept at home is zakatable, just like money in a bank account. Include all physical currency when calculating Zakat.
Clear, evidence-led guidance to help you understand Zakat and make confident decisions—step by step.
Understand the basic concept of zakat so that you can fullfil your obligations with confidence and without doubt.
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Zakat is the third pillar of Islam, a mandatory act of worship that purifies wealth and supports the community.
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Zakat exists to purify wealth and create a just society. It is a command from Allah with deep spiritual and social benefits.
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Not everyone must pay Zakat. You must meet four specific conditions before Zakat becomes obligatory.
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Zakat becomes due after you have held qualifying wealth above nisab for one full lunar year.
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Your Zakat goes to eight specific categories of people. The Quran defines exactly who can receive it.
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Zakat and Sadaqah are both forms of giving in Islam, but they are fundamentally different. One is obligatory, the other is voluntary.
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Nisab is the minimum amount of wealth you must own before Zakat becomes obligatory. It is based on the value of gold or silver.
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The nisab can be calculated using gold or silver. The two values differ significantly, and your choice affects whether Zakat is due.
Learn which types of wealth are subject to zakat and how to assess them accurately.
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Not all wealth is subject to Zakat. Islam defines specific types of wealth that must be included in your calculation, and others that are exempt.
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Cash and savings are the most common forms of zakatable wealth. If you have money in the bank or at home, it is likely subject to Zakat.
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Shares, stocks, pensions, and cryptocurrency are zakatable if they meet certain conditions. Zakat applies to modern wealth just as it does to traditional assets.
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Property and business assets are zakatable if they are held for profit. Your main home and personal belongings are exempt.
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Debts can reduce the amount of Zakat you owe, but not all debts are treated the same way. Understanding the rules helps you calculate correctly.
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All cash and money in bank accounts is counted when calculating Zakat. This includes current accounts and savings accounts.
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Foreign currency is zakatable. Convert its value to your local currency on your Zakat date and include it in your calculation.
Understand how debts and liabilities affect your zakat calculation and what can be deducted.
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Debts can reduce the amount of Zakat you owe, but not all debts are treated the same way. Understanding the rules helps you calculate correctly.
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Zakat calculation treats short-term and long-term debts differently. Know the difference to calculate accurately.
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Long-term debts like mortgages and student loans are treated differently. You cannot deduct the full amount when calculating Zakat.
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Immediate debts are obligations you must pay within the next year. These can be deducted from your zakatable wealth.
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Student loans (in the UK) are usually not deductible because repayment depends on income and they may be written off. Scholars differ on this.
66 articles
16 Jan 2025
Cash kept at home is zakatable, just like money in a bank account. Include all physical currency when calculating Zakat.
16 Jan 2025
Emergency funds are zakatable. Even though you are saving this money for unexpected needs, it is wealth you own and control.
16 Jan 2025
Money saved for upcoming bills may be deductible in some cases, but scholars differ. Immediate debts can reduce your zakatable wealth.
16 Jan 2025
Salary income is zakatable once it has been in your possession for one full year. Newly earned salary is not immediately zakatable, but it must be tracked.
16 Jan 2025
Joint accounts require you to calculate Zakat on your share only. Each account holder is responsible for their portion.
16 Jan 2025
Yes, savings accounts are zakatable. Whether the account earns interest or not, the balance is included in your Zakat calculation.