Modern Assets Guide

Zakat on Stocks & Crypto

Modern wealth requires modern understanding. Learn how to purify your investment portfolio and digital assets.

Updated for 2025

Intention (Niyyah) Matters

The way you calculate Zakat on stocks depends entirely on your intention when you bought them: did you buy to sell for profit (Trade), or to hold for dividends (Invest)?

Short-Term Trading

If you bought shares or crypto with the intention to sell when the price goes up (day trading, swing trading).

Zakat RulePay 2.5% on the Total Market Value.

Long-Term Investing

If you bought shares to hold for years and earn dividends (passive income), and have no immediate intention to sell.

Zakat RulePay 2.5% on Zakatable Assets only.

Zakat on Cryptocurrency

Bitcoin, Ethereum, and other cryptocurrencies are treated as 'Mal' (Wealth) or Digital Currency by most scholars.

Regardless of whether you hold it on an exchange or a cold wallet, Zakat is due at 2.5% of its current market value if you possess it for a lunar year.

How to Calculate for Long-Term Shares

  • For long-term investors, you don't pay Zakat on the company's machinery or buildings.
  • You only pay on the 'Zakatable Assets' of the company: Cash + Receivables + Inventory.
  • Method 1 (Precise): Check the company's balance sheet, find the % of liquid assets per share, and pay 2.5% of that.
  • Method 2 (Safe Estimate): If balance sheets are too hard, many scholars suggest paying 2.5% on 30% to 40% of the market value.
  • Method 3 (Safest): Pay 2.5% on the total market value to be completely sure.

Purify Your Portfolio

Calculate the exact Zakat due on your investments. Not sure if you reach the limit? Check the Nisab.

Calculate ZakatCheck Nisab Limit

Common Questions

Q.Do I pay Zakat on 401(k) or Pension Funds?

Generally, Zakat is due on the accessible portion of the fund. If you cannot withdraw it, some scholars say Zakat is due only upon receipt. Consult a scholar for your specific plan.

Q.I am holding Crypto at a loss. Do I still pay?

Yes. Zakat is on the current value of the asset, not on your profit. Even if the value dropped, if it's still above Nisab, you pay 2.5% of the current remaining value.

Q.Do I calculate based on purchase price or market price?

Always use the current Market Price on the day your Zakat is due.