What is nisab? How much gold/silver is it?

Published by:

nisabAnswer: Nisab is the legal term used to describe the minimum amount of constantly accessible surplus wealth that one must possess in order to be liable for Zakat. In the Sunnah, it is designated as possession of either 20 gold Dinar or 200 gold dirhams. These amounts have been approximated in modern measurements as 84.9 grams of gold and 592.9 grams of silver. They are then multiplied by the current market value. This gives us the cash value of Nisab. You can easily do this by visiting this website. Using this site, the nisab of gold for July 31st is equal to 4838.96 USD. For silver it is 539.34 USD. When calculating nisab for each metal separately, you use the respective nisab above. When calculating for cash and all marketable securities and surplus wealth, you use silver. So if you own 539.34 or more in surplus wealth (including checking, savings, and investment accounts) then you will pay 2.5% of the sum total of that amount.

Don’t see what you’re looking for here? Try our Zakat page for more information.

Do I have to pay Zakat on my car and home?

Published by:

Question: Do I have to pay Zakat on my car and home?

Answer: You do not have to pay Zakat on any personal effects you own. By personal, I mean anything used primarily by yourself and your family for your general welfare and quality of life.

If you own a car or home for investment and/or resale then you pay 2.5% on the market price after having possessed it for one year. If you own a car or home and lease it to others, then you pay 2.5% on the revenue earned not the asset’study market price.

And Allah knows best.

Don’t see what you’re looking for here? Try our Zakat page for more information.

Do I pay Zakat on my sports car?

Published by:

E-Nisab.com is a great site, and one that I frequently refer to. Today I noticed that they had posted this on their twitter account:

The link provided refers back to Darul Fiqh’s site, where Maulana Faraz ibn Adam responds (referencing Rad al-Muhtar):

Any personal belonging for personal use such as a house, car, refrigerator and the like are not subject to zakāt. Even if it is surplus to requirements, zakāt is not due on such an item. Thus, there is no zakāt due on the sports car in reference.[i]

I would just add that one caveat to this general fatwa is that if and when a person using luxury items for the storage of value as a means to Zakat evasion, then these items become zakatable as well. During the time of Omar (May Allah be pleased with him) people purchased horses and slaves and claimed an exemption from Zakat due to texts negating any zakat liability on slaves and horses. Omar looked past the letter of the law, and held them liable for zakat.

What was his legalistic reasoning for doing so?

Don’t see what you’re looking for here? Try our Zakat page for more information.

Want the latest and greatest updates from Muslim Money Guide?

Subscribe to our mailing list below. You'll get:

  • Latest Articles

  • Video and Podcasts

  • Whitepapers and Research

Your Email Address: