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Zakat on Investments: The Basics
March 30, 2026 · 1 min read
Zakat is one of the five pillars of Islam — an obligation to give a portion of your wealth to those in need. It applies to savings and investments that meet certain conditions.
Who Owes Zakat?
Any Muslim whose wealth exceeds the nisab (minimum threshold) for a full lunar year owes zakat. This includes cash, gold, silver, stocks, and other investments.
The Rate
The standard zakat rate on monetary wealth and investments is 2.5% (1/40th) of the total qualifying wealth.
When Is It Due?
Zakat becomes due when your wealth has been above the nisab for one complete hawl (lunar year). Many people choose a fixed annual date for simplicity.
What Counts as Zakatable Wealth?
- Cash in bank accounts
- Market value of stocks and funds
- Gold and silver (above personal use thresholds, according to some scholars)
- Business inventory and receivables
What Does Not Count
- Personal residence
- Personal vehicle
- Household furniture and clothing
- Tools used for earning a living
Zakat is a calculation on your net qualifying wealth — assets minus liabilities.