As Ramadan begins this week, Muslims around the world are preparing to fulfil one of Islam’s fundamental pillars — Zakat. Understanding how to calculate and pay Zakat in 2026 is essential for ensuring that this annual obligation is carried out correctly and responsibly.
Zakat is compulsory for every adult Muslim of sound mind who possesses wealth above the nisab — the minimum financial threshold that determines eligibility. It is a mandatory act of worship designed to purify wealth and support those in need.
According to Islamic Relief, Zakat is calculated at 2.5% of net zakatable assets that have been held for one full lunar year, known as hawl. This means that once your wealth remains above the nisab threshold for a complete Islamic year, Zakat becomes due.
What Is the Nisab in 2026?
The nisab is determined based on the market value of either gold or silver. Both benchmarks are considered valid under Islamic law. However, many scholars recommend using the silver standard because it sets a lower threshold, allowing more Muslims to qualify for paying Zakat and thereby benefiting a greater number of people in need.
As of the latest market estimates:
- The nisab based on 612.36 grams of silver is approximately $1,470.31.
- The nisab based on 87.48 grams of gold stands at around $13,806.48.
These figures are subject to daily fluctuations depending on global commodity prices, so individuals are encouraged to verify updated rates before calculating their dues.
What Assets Are Subject to Zakat?
Zakatable assets include:
- Gold and silver (including jewellery held as savings)
- Cash in hand and bank savings
- Business inventory and trade goods
- Investments and shares
- Certain receivables expected to be recovered
To calculate Zakat, individuals must total all zakatable assets on their Zakat anniversary date. From this amount, eligible liabilities may be deducted to determine net zakatable wealth.
What Can Be Deducted?
Islamic Relief clarifies that only specific liabilities may be subtracted from your total assets. These include:
- Debts payable within the next 12 months
- Overdue bills and payments
- Up to one year’s instalments of long-term debts
However, expenses that are not yet due and liabilities extending beyond the next 12 months cannot be deducted.
In the case of mortgages or student loans, only the portion that is due within the coming year — or overdue — may be considered deductible.
What About Interest (Riba)?
Zakat is not payable on interest (riba). Any interest earned from bank accounts or financial products must be given away as general charity and cannot be counted as part of Zakat payments.
Why Zakat Matters During Ramadan
Although Zakat can be paid at any time of the year once it becomes due, many Muslims choose to give it during Ramadan because acts of charity are believed to carry greater spiritual reward during the holy month.
Beyond its religious significance, Zakat plays a critical role in addressing poverty, supporting vulnerable communities, and promoting economic balance. It ensures wealth circulation within society and reinforces social responsibility.
As Ramadan 2026 begins, Muslims are encouraged to carefully assess their finances, confirm the current nisab value, and calculate their dues accurately. By doing so, they not only fulfil a religious obligation but also contribute to uplifting those in need during one of the most spiritually significant times of the year.
