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NISAB

Nisab

Nisab is the minimum amount that a Muslim must have to be eligible to pay zakat.

 What is nisab?

Nisab is the minimum amount of wealth a Muslim must own for one full lunar year before they become eligible to calculate and give Zakat. The nisab was set by Prophet Muhammad (peace be upon him) at a rate equivalent to 87.48 grams of gold or 612.36 grams of silver.

See below for a live update of the value of gold and silver, which fluctuates daily. 

Most scholars advise people to use the silver value (which is almost always a lower threshold to gold) because this allows for a greater amount to be eligible for zakat, which means more help for those in need. 

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Current Nisab Value (Live update)

Using value of silver (612.36 grams) – approximately $1,133.94

Using value of gold (87.48 grams) – approximately $11,618.55

Zakat calculator

For the latest prices, refer to the online zakat calculator.

Example:
In 1423 AH, Suraya’s zakatable wealth came to only $200. She owes no zakat. The next year was better for her, and she now owns $2,500 in zakatable wealth. She will be liable for zakat after the money has been in her possession for a lunar year.

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Related questions
Should I use the gold or silver nisab?

The nisab calculated with the silver standard is significantly lower than its gold counterpart. This is because the value of silver has plummeted since the time of the Prophet (PBUH).

There are arguments for using either nisab value. Many scholars say that it is better to use the silver nisab since it will increase the amount of charity distributed; others say that the gold nisab is closer to the nisab in use at the time of the blessed Prophet (peace be upon him).

However, if your assets consist entirely of gold, you must use the gold nisab, and similarly, if they consist entirely of silver then the silver nisab must be used.

My wealth decreased below the nisab for a few months during the year, do I still pay zakat?

As long as you are in possession of wealth above the nisab threshold on your seed date*, then zakat will be due, even if your wealth dipped below the nisab for some or most of the year.

*The zakat year begins on the date you were first in possession of wealth above the nisab. This will be your seed date, or your personal zakat payment date.

I have more money than the nisab but I need it for my living expenses

If a person possesses wealth exceeding the nisab threshold, but has to pay rent, purchase food, clothing, etc., for themselves and their dependants, then these costs may be deducted from one’s wealth.

If, after deducting these costs, the remaining amount is less than the nisab at the end of the zakat year, then no zakat is payable

When does the zakat year begin?

The zakat year begins on the date on which you were first in possessions of wealth above the nisab.

This will be your seed date, whenever it comes around you will have to calculate zakat, irrespective of any fluctuations in the amount of wealth in your possession.

The only situation in which your seed date will change is if you were to become totally bankrupt and lose all your assets and belongings. In this situation, your new seed date will begin when you are once again in possession of wealth above the nisab.

If you are not sure of your seed date, then estimate it to the best of your ability.

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