What is Zakat in Islam? 5 Reasons why it is important!
What is zakat in Islam? Zakat is one of the five pillars of Islam that are obligatory for every capable Muslim. It is an act of charity that is given to the eligible people of zakat as discussed in the holy Quran.
In this article, we will explore the meaning of Zakat in Islam, who is eligible for Zakat, how to calculate it, and more.
Table of Contents
What is Zakat in Islam?
Zakat is an act of charity that is obligatory on every capable Muslim. It is calculated based on the person’s wealth. The word Zakat means “purification” or “growth”. It is one of the 5 pillars of Islam and part of the Muslims’ beliefs and values. A Muslim gives out Zakat as a means of purifying one’s wealth and as an act of worship and compassion.
Why is Zakat Obligatory in Islam?
Now that we know what is zakat in Islam it’s important to understand its importance.
1. Zakat is a command from Allah.
Zakat is obligatory because Allah Almighty commanded every capable Muslim in the holy Quran to give out Zakat.
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.” (Quran 2:110)
2. Purification of Wealth and Soul:
Giving zakat in Islam is a means of purifying one’s wealth and soul. Knowing that our wealth comes from Allah Almighty and to him everything shall return.
3. Zakat in Islam: Social Justice and Equality:
Zakat in Islam is not just an act of worship, it also helps us redistribute wealth within society, helping the ones in need and being kind to them.
4. Strengthening Community Bonds:
Zakat in Islam unites the Ummah and encourages mutual support and kindness.
5. Test of Faith:
Zakat in Islam is a means of showing our faith in Allah. When a person gives out Zakat he is declaring his devotion to Allah and his belief that the afterlife is better than any wealth.
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Who is Eligible to Pay and Receive Zakat in Islam?
The one who is eligible to pay zakat in Islam is the one whose wealth exceeds the Nisab. Which is a certain threshold calculated based on the value of gold and silver.
The ones who are eligible to receive Zakat are mentioned in the holy Quran in the following verse:
۞ إِنَّمَا ٱلصَّدَقَـٰتُ لِلْفُقَرَآءِ وَٱلْمَسَـٰكِينِ وَٱلْعَـٰمِلِينَ عَلَيْهَا وَٱلْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِى ٱلرِّقَابِ وَٱلْغَـٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبْنِ ٱلسَّبِيلِ ۖ فَرِيضَةًۭ مِّنَ ٱللَّهِ ۗ وَٱللَّهُ عَلِيمٌ حَكِيمٌۭ ٦٠
“Alms-tax is only for the poor and the needy, for those employed to administer it, for those whose hearts are attracted ˹to the faith˺, for ˹freeing˺ slaves, for those in debt, for Allah’s cause, and for ˹needy˺ travelers. This is an obligation from Allah. And Allah is All-Knowing, All-Wise.” [al-Tawbah 9:60]
From this verse, we can understand that the Recipients of Zakat in Islam are divided into 8 categories:
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The poor (fuqara)
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The needy (masakin)
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Zakat administrators
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Those whose hearts are to be reconciled (e.g., new Muslims)
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Slaves seeking freedom
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Those in debt
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For the cause of Allah
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Travelers in need
The Role of Zakat in Supporting the Muslim Community
Zakat in Islam is not just an act of charity, it’s a means of uniting the community by helping the ones in need.
1. Zakat in Islam: Alleviating Poverty and Hunger
Zakat in Islam helps overcome poverty. As it should be given to the poor and needy to ensure they can live a decent life. Providing them with shelter, food, clothes, and life necessities. Charity in Islam helps empower the ones in need and provide them with a good life.
2. Encouraging Social Equity
Zakat in Islam helps redistribute wealth among the people which leads to instilling a sense of justice and equity.
3. Zakat in Islam Strengthening Communal Bonds
Zakat in Islam instills kindness and empathy in Muslims’ hearts building stronger ties and relationships among the people. Reminding us that this life is nothing but a test and that we should work for the afterlife.
4. Supporting Essential Causes
The holy Quran states that Zakat should be given to specific categories like the poor the needy, gharimin, freeing slaves, and for the cause of Allah.
5. Strengthening Faith and Spirituality
Zakat in Islam is a means of worship and an act of faith and devotion to Allah Almighty. When we give charity in Islam it purifies not only our wealth but our souls too, fostering a stronger connection with Allah.
How to Fulfill Your Duty of Zakat as a Muslim?
To fulfill your duty of zakat in Islam you need to understand the meaning of Zakat, its importance, who to give it to, how to calculate Zakat, and whether you are eligible to pay it or not. Zakat is an act of worship that allows us to show our devotion and faith in Allah by helping the ones in need. Zakat fosters justice and strengthens our faith.
To know if you are eligible to pay Zakat in Islam or not calculate your wealth and if it meets the nisab (minimum threshold) then you should pay it. The type of wealth to include in your calculations include:
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Savings
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Business inventory
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Gold and silver
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Investments (stocks, mutual funds, etc.)
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Agricultural produce
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Livestock
If your wealth exceeds the Nisab for a whole lunar year then you are capable of paying Zakat and you should pay it on time. Don’t forget to make your intention first.
Understanding the Importance of Zakat in Islamic Faith
Zakat in Islam is important because it is a means of purifying our wealth and souls, establishing one of the five pillars of Islam, and following Allah’s command. Besides all the reasons we discussed above here are other reasons why zakat is important:
1. Zakat is a pillar of Islam.
One of the five pillars of Islam that are obligatory on every capable Muslim is Zakat. It is an act of worship and it carries many blessings and rewards to the one who pays it. Allah Almighty said in the Quran:
وَأَقِيمُوا۟ ٱلصَّلَوٰةَ وَءَاتُوا۟ ٱلزَّكَوٰةَ وَٱرْكَعُوا۟ مَعَ ٱلرَّٰكِعِينَ ٤٣
“Establish prayer, pay alms-tax, and bow down with those who bow down.” (Quran 2:43)
2. Zakat in Islam is a Fulfillment of a Divine Command.
Allah Almighty instructed us to pay Zakat as a means of worship and submission to him. When a Muslim pays Zakat he is fulfilling Allah’s command and purifying his wealth.
3. Reward in the Hereafter.
Paying Zakat in Islam is rewarding, as Allah Almighty said in the Quran:
إِنَّ ٱلَّذِينَ ءَامَنُوا۟ وَعَمِلُوا۟ ٱلصَّـٰلِحَـٰتِ وَأَقَامُوا۟ ٱلصَّلَوٰةَ وَءَاتَوُا۟ ٱلزَّكَوٰةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ ٢٧٧
Zakat: How It Differs from Other Forms of Charity
Here’s a clear table summarizing the key differences between Zakat and Sadaqah:
| Aspect | Zakat | Sadaqah |
| Obligatory vs. Voluntary | Zakat in Islam is mandatory for every capable Muslim whose wealth exceeds the Nisab. | Sadaqah is a voluntary act of worship. Anyone can pay it. |
| Calculation | It is calculated as a fixed amount at 2.5% of eligible wealth calculated over a whole lunar year. | No specific percentage; based on the giver’s ability and willingness. |
| Recipients | Zakat in Islam must be given to the eligible receipts of Zakat that are mentioned in the Quran. | Sadaqah can be given to anyone. |
| Timing | Zakat should be paid annually as long as it exceeds the nisab for a whole lunar year. | Sadaqah can be paid at any time. |
| Spiritual Significance | It is a command from Allah and is an act of worship and obedience. | It’s an act of kindness and compassion and it is rewarding. |
In what cases is a Muslim exempted from paying Zakat?
The Muslim is exempted from paying Zakat in the following conditions:
- If he does not possess the specified Nisab (85 grams of gold or its equivalent).
- If a full Hijri year has not passed on the money.
- If personal and basic expenses such as food and clothing exceed his money.
- Zakat is not due on used property such as the house he lives in or the car he uses.
What are the penalties for those who intentionally neglect Zakat in Islam?
Deliberately neglecting Zakat is considered a major sin in Islam, and is considered a failure to perform one of the pillars of religion. The Qur’an and Sunnah contain severe warnings for those who refrain from paying Zakat, including:
- In this world: corruption of wealth and a decrease in blessing.
- In the Hereafter: severe torment, as stated in the Almighty’s saying: “On the Day when it will be heated in the fire of Hell and their foreheads, their sides, and their backs will be branded with it” (At-Tawbah: 35).
Zakat vs. Nisab, what is the difference?
here is a table that shows the difference between Zakat in Islam and Nisab:
| Feature | Zakat | Nisab |
| Definition | A mandatory charity Muslims must pay annually. | The minimum amount of wealth required before Zakat becomes obligatory. |
| Purpose | Purifies wealth and helps the needy. | Determines if a person is eligible to pay Zakat. |
| Obligation | Due only if wealth exceeds Nisab and is held for a full lunar year. | If wealth is below Nisab, Zakat is not required. |
| Rate | 2.5% of savings and qualifying assets. | A fixed threshold is measured in gold or silver. |
| Measurement | Based on savings, gold, silver, investments, business goods, and cash. | 87.48 grams of gold or 612.36 grams of silver. |
| Time Frame | Paid after one lunar year of maintaining wealth above Nisab. | Checked at the beginning and end of the lunar year to determine Zakat obligation. |
How to Calculate Zakat in Islamic Charity
Zakat is calculated as 2.5% of your Zakatable assets if the wealth exceeds the nisab. The Zakatable assets, include cash, savings, gold, silver, investments, business inventory, and debts owed to you. You should calculate the zakat and give it to one or more of the eligible categories. There are online calculators to help you calculate it. Here is the equation to calculate Zakat in Islam with an example:
Zakat=(Zakatable Wealth – Debts)×2.5%
Example:
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Total Wealth: $10,000
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Debts: $2,000
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Zakatable Wealth: $8,000
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Zakat: 8,000×0.025=2008,000 \times 0.025 = 2008,000×0.025=200
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You owe $200 as Zakat.
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Conclusion
Zakat is an act of worship and one of the five pillars of Islam. It purifies the heart, soul, and wealth, helping the community to distribute wealth overcome poverty, and help the ones in need.
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FAQs
What is the real purpose of Zakat?
The real purpose of Zakat is to purify wealth, obey Allah Almighty, and perform our duty of worship. It is one of the five pillars of Islam that are mandatory for every capable Muslim.
What are the three conditions of Zakat?
The 3 conditions of Zakat to be valid are, to be sane, wealth exceeds the Nisab for a whole year, and it must be given to eligible Zakat recipients.
Is it permissible to pay Zakat before its due date?
Yes, it is permissible to pay Zakat before its due date if there is an urgent need, such as helping the poor in crises or disasters. This act is known as hastening the payment of Zakat.
