What is zakāt, and do I have to pay it?

Zakāt is the third pillar, and the one most often misunderstood as “Islamic charity”. It is closer to a due than a donation.

How it works:

• It applies to wealth that sits — savings, gold, silver, trade goods, investments. Not to your home, your car, your furniture or the tools you work with.
• It is owed only above a minimum (nisāb), traditionally the value of about 85g of gold or 595g of silver. Below that, nothing is due.
• The wealth must have been held for one lunar year.
• The rate on money and gold is 2.5%. Crops and livestock have their own rates.

Who receives it is not left to preference: “Zakāh expenditures are only for the poor and for the needy and for those employed for it and for bringing hearts together for Islām and for freeing captives or slaves and for those in debt and for the cause of Allah and for the stranded traveler - an obligation imposed by Allah. And Allah is Knowing and Wise.” (Qur’an 9:60)

That list is the reason zakāt cannot simply be given to a mosque building fund or any good cause — those are excellent charity, but they are not zakāt. It also cannot be given to your own parents, children or spouse, since supporting them is already your obligation.

The framing throughout is that this money was never entirely yours to keep: “And establish prayer and give zakāh, and whatever good you put forward for yourselves - you will find it with Allah. Indeed Allah, of what you do, is Seeing.” (Qur’an 2:110)

For most people starting out the practical answer is simple. If you have savings above the threshold that have sat for a year, work out 2.5% and give it to someone who qualifies. If you are living month to month, or in debt, you very likely owe nothing — and you may well be among those eligible to receive it.