Gold is one of the most common assets on which Muslims pay Zakat every year. For centuries, it has symbolized wealth and stability, and in Islam, it carries great spiritual responsibility. Zakat on gold ensures that wealth continues to circulate in society, uplifting the poor and reducing inequality. Understanding how to calculate Zakat on gold is essential for every Muslim who wishes to fulfill this pillar of Islam correctly and sincerely.
Zakat is not merely a charitable act; it is an act of worship and purification. Allah (SWT) commands in the Holy Qur’an:
“Take, [O Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah's blessings] upon them.”
(Surah At-Tawbah, 9:103)
This verse makes it clear that Zakat is a divine command meant to purify both the wealth and the soul of the giver. It instills gratitude and ensures that blessings continue to grow through obedience to Allah (SWT).
Zakat on gold becomes obligatory when a person possesses wealth equal to or exceeding the Nisab (minimum threshold) for one lunar year. The Nisab for gold is 87.48 grams (7.5 tolas).
If a person owns gold that meets or exceeds this weight and it remains in their possession for one lunar year, they must pay 2.5% of its current market value as Zakat.
Weigh all the gold you own, whether it is jewelry, coins, or bullion. Include every piece that you use or store for value.
Find the current market rate of 24K gold per gram in your country. You can easily get this from reliable financial or jewelry websites.
Multiply the total weight of your gold (in grams) by the current gold rate per gram.
For example:
If you own 100 grams of gold and the current rate is PKR 18,000 per gram, your total gold value is:
100 × 18,000 = PKR 1,800,000
Now multiply the total value by 2.5% (0.025) to find your payable Zakat amount.
1,800,000 × 0.025 = PKR 45,000
So, the Zakat payable on 100 grams of gold is PKR 45,000.
If your gold alone is below the Nisab threshold, but your combined wealth (cash, silver, investments, etc.) reaches the Nisab, Zakat becomes due on your total assets. The Nisab value is equivalent to 87.48 grams of gold or 612.36 grams of silver — whichever is lower, according to the Hanafi principle of benefiting the poor.
In the Hanafi school, Zakat is due on all gold — even if it is used as jewelry. This differs from some other schools (like Maliki and Shafi‘i), where personal jewelry may be exempt if used regularly. However, Hanafis emphasize that wealth in the form of gold retains its Zakat obligation regardless of use, as the Prophet (ﷺ) clarified that gold and silver are not exempt from charity.
A narration in Sunan Abi Dawud mentions:
“A woman came to the Messenger of Allah (ﷺ) with her daughter. The girl had two heavy gold bangles on her hands. The Prophet (ﷺ) asked: ‘Do you pay Zakat on them?’ She said: ‘No.’ The Prophet (ﷺ) said: ‘Would you like Allah to put on you two bangles of fire instead?’ So she took them off and said: ‘They are for Allah and His Messenger.’” (Sunan Abi Dawud 1563)
This Hadith underlines that even gold jewelry requires Zakat if it reaches Nisab.
Although Zakat is due once a lunar year, many Muslims prefer to give it during Ramadan. This is not because it is obligatory during the holy month but because rewards multiply in Ramadan, especially during Laylat al-Qadr, as mentioned in Surah Al-Qadr (97:3):
“The Night of Decree is better than a thousand months.”
By aligning their Zakat donations with Ramadan, Muslims seek maximum spiritual reward while helping those in need during the most sacred time of the year. However, it must be remembered that Zakat becomes due exactly after the anniversary of your first Zakat giving, and it must not be delayed. If you want to align your Zakat giving to Ramadan, you can do so by donating Zakat in advance for the upcoming year.
Paying Zakat on gold is not merely a financial act; it’s an act of compassion and faith. It helps balance wealth distribution and supports the needy — a reflection of Islam’s deep concern for justice and humanity. The Prophet (ﷺ) said:
“Charity does not decrease wealth.” (Sahih Muslim 2588)
This Hadith reminds us that when we give sincerely, Allah (SWT) multiplies our blessings in unseen ways.
At Transparent Hands, we ensure that your Zakat and Sadaqah reach those who truly need it. Since 2014, we have provided free medical and surgical care to over 260,000 deserving patients across Pakistan. We also organize free medical camps in rural and flood-affected regions to bring healthcare to those who have none.
When you Calculate Zakat on Gold, remember that your Zakat Donations can become a source of healing for those struggling to survive due to illness and poverty. Each rupee you give helps save a life, restore health, and spread hope. You can donate your Zakat confidently, as Transparent Hands operates under the guidance of a qualified Islamic scholar to ensure full Shariah compliance.
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