Gold is the asset families most often forget when working out Zakat: wedding jewellery in a locker, a few bangles worn every day, a gold coin received as a gift. This guide covers the Nisab for gold in both tola and grams, how to value gold of different karats, and the one question everyone asks: is Zakat due on jewellery I wear?
Gold and silver Nisab in tola and grams
One tola is 11.6638 grams. The Nisab was set in the time of the Prophet ๏ทบ as 20 mithqal of gold and 200 dirhams of silver, which today is usually given as:
| Metal | Nisab in tola | Nisab in grams | Zakat rate |
|---|---|---|---|
| Gold | 7.5 tola | 87.48 g | 2.5% |
| Silver | 52.5 tola | 612.36 g | 2.5% |
You may see slightly different gram figures elsewhere, such as 85 g of gold and 595 g of silver. These come from a different conversion of the mithqal. The figures above are the ones commonly used in Pakistan and India, and they match the tola amounts.
If you only own gold
If gold is your only zakatable wealth (no cash, no savings, no silver, no business stock), Zakat is due when it reaches 7.5 tola (87.48 g). Below that, nothing is due.
If you own gold plus some cash or savings
This is the usual situation, and it changes the answer. According to the Hanafi school, followed by most Muslims in Pakistan, India and Bangladesh, you add the value of your gold to your cash, savings and other zakatable assets, and compare the total with the silver Nisab. Because the silver Nisab is much lower, a person with only 3 tola of gold and a modest bank balance usually does pay Zakat.
How to value your gold
- Weigh it, or check the receipt. Jewellers' receipts usually show the weight in tola, masha and ratti (1 tola = 12 masha, 1 masha = 8 ratti) or in grams.
- Find the karat. Most jewellery in Pakistan and the Gulf is 22K or 21K; 24K is pure gold (bars, coins); 18K is common in modern designs.
- Use today's selling price for that karat. Most scholars say use the price you could actually sell it for on your Zakat date. Making charges and gemstones are not counted (stones like diamonds in personal jewellery are not zakatable).
For example, 10 tola (116.64 g) of 22K gold at an example price of Rs 370,000 per tola is worth Rs 3,700,000. Zakat on it is Rs 3,700,000 ร 2.5% = Rs 92,500, as long as the rest of your wealth does not change the picture.
Is Zakat due on jewellery you wear?
This is a genuine difference of opinion among the schools of thought:
- Hanafi school: Zakat is due on all gold and silver, including jewellery worn regularly. This is the common position in South Asia, and also the more cautious one.
- Shafi'i, Maliki and Hanbali schools: jewellery that is permissible and worn normally is not zakatable. Jewellery kept as savings or investment, or that is excessive, is.
Follow the school you normally follow, or ask your local scholar. Whichever view you take, gold kept as an investment (bars, coins, jewellery that is never worn) is zakatable according to all of them.
Who pays Zakat on a wife's jewellery?
Zakat is due from the owner. Jewellery given to a bride (as mahr or a gift) belongs to her, so the Zakat is her responsibility. Her husband or family may pay it on her behalf with her permission. If she has no cash, she can pay from her own savings or, if needed, sell part of the gold.
Silver
The same rules apply to silver: add it to your other zakatable wealth at its current selling price. Silver jewellery is treated like gold jewellery in each school.
For the full method, including cash, business stock and debts, read how to calculate Zakat.