Islamic Finance Guide

The Ultimate Guide to Zakat on Gold

Understanding the divine obligation on your accumulated wealth, specifically regarding gold assets, jewelry, and bullion.

Updated for 2025

Nisab Threshold87.48 Grams(7.5 Tola)
Zakat Rate2.5%(1/40th part)
Cycle Required1 Lunar Year(Hawl)

Why Zakat on Gold?

Gold has historically been the standard of wealth in human civilization. In Islam, gold is considered a 'growing asset' (Amwal-e-Namia). Paying Zakat on it purifies your remaining wealth and ensures circulation within the economy to help those in need.


Understanding the Nisab of Gold

Nisab is the minimum amount of wealth a Muslim must possess for a full lunar year before they are liable to pay Zakat. For gold, this threshold is defined historically as 20 Dinars.

  • 87.48 Grams (Standard Metric)
  • 7.5 Tola (South Asian Standard)
  • If you own less than this amount, no Zakat is due on gold alone.

Zakat on Gold Jewelry: Is it Taxable?

There is a difference of opinion among scholars regarding gold used for daily wear versus gold kept as an investment. However, the safest and most widely accepted view (Hanafi school and others) is that Zakat is due on all gold, whether it is jewelry worn daily or bars locked in a safe, provided it meets the Nisab.

Always weigh the gold content (purity) only, excluding stones, gems, or other metals attached to the jewelry.

How to Calculate

1Weigh your gold assets in grams.
2Identify the purity (24K, 22K, 18K).
3Find the current market rate per gram for that purity.
4Multiply Total Weight × Current Rate × 2.5%.

Ready to Calculate Your Zakat?

We have built a dedicated tool to help you calculate the exact amount based on today's gold rates.

Go to Zakat Calculator

Frequently Asked Questions

Q.Do I pay Zakat on white gold?

Yes, white gold is essentially gold mixed with other metals (like palladium). Zakat is due on the gold content within it.

Q.Do I pay Zakat on stones in my gold ring?

No. You must deduct the weight of diamonds, rubies, or gemstones. Zakat is only on the weight of the gold metal itself.

Q.Can I pay Zakat in cash instead of gold?

Yes, you can calculate the value of the gold due and pay that equivalent amount in your local currency.