Zakat and Gold: The Basics
Zakat — one of the Five Pillars of Islam — is an obligatory charity of 2.5% on wealth held above the nisab threshold for a full lunar year. Gold is one of the primary assets on which Zakat is due.
What is the Nisab for Gold?
The gold nisab is 85 grams of pure 24K gold (approximately 7.5 tolas). If you own 85 grams or more of gold (in any form) that has been in your possession for a full Islamic lunar year, Zakat is due.
Nisab (Gold)
85 grams
Nisab in Tola
7.5 tola
Zakat Rate
2.5%
PKR Nisab (2026)
~Rs 3.64M
How to Calculate Zakat on Gold
- Weigh all your gold holdings (jewellery, bars, coins)
- Convert to the current market value of 24K gold per gram
- If total value exceeds the nisab, calculate 2.5% of the total value
- Pay this amount in cash or kind
Common Questions
Does Zakat apply to jewellery worn regularly? There is scholarly disagreement — the Hanafi school says yes; Shafi\'i, Maliki, and Hanbali schools generally say no for personal-use jewellery. Consult your local scholar.
When in doubt, paying Zakat on all gold is the more cautious (and rewarding) approach. The 2.5% is a small price for the spiritual and social benefit.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Gold prices mentioned are indicative. Always consult a licensed financial adviser and verify current rates at GoldRateToday.xyz before making investment decisions.