The nisab for gold
The nisab is the minimum wealth on which zakat becomes due. For gold, it is 7.5 tola, which is 87.48 grams (one tola is 11.664 g). If your gold stays at or above this amount for one full Islamic year, you pay 2.5% of its value.
Zakat is counted on your zakat date each year, the anniversary of the day your wealth first reached the nisab. Many people simply fix a date in Ramazan and calculate on the same date every year.
When the silver nisab applies instead
This is where many families get it wrong. The 7.5 tola rule applies only when gold is your only zakatable wealth. If you also have cash at home, a bank balance, silver, business stock or money owed to you, the Hanafi method adds them all together and compares the total with the silver nisab: 52.5 tola (612.36 g) of silver.
Because silver is far cheaper than gold, the silver nisab is a much lower amount in rupees. In practice, a household with even 2 or 3 tola of gold plus some savings will usually be above the nisab and owe zakat.
Example: 3 tola of gold alone is below 7.5 tola, so no zakat is due. But 3 tola of gold plus Rs 50,000 in the bank is a mixed holding, and its total value is compared with the silver nisab, so zakat is very likely due.
Is zakat due on jewellery you wear?
In the Hanafi school, followed by most Muslims in Pakistan, yes. Gold and silver are zakatable whether they are bars, coins or jewellery, and whether the jewellery is worn daily or kept in a locker. Some other schools of thought exempt jewellery in regular personal use. If you follow a different school, ask a scholar of that school.
Artificial jewellery, gold-plated items and gemstones are not gold and are not counted, unless they are business stock held for sale.
How to value your gold
- Weigh it. Use the weight on your jeweller's receipt, or have it weighed. Count only the gold, not stones set in it, if the jeweller can separate the two.
- Use the rate for its purity. 22-karat and 21-karat jewellery have lower rates than 24-karat gold. Ask your local sarafa for today's rate of your karat.
- Buying or selling price? Many scholars advise using the price you would actually get if you sold the gold today. Follow the guidance of the scholar you trust.
- Making charges do not count. What you paid for design and labour is not part of the gold's zakat value.
Worked examples
The rates below are examples only, chosen to make the maths easy to follow. Use today's actual rates for your own calculation.
Example 1: only gold
Sana owns 10 tola of 22-karat jewellery and nothing else zakatable. Example rate for 22k: Rs 2,75,000 per tola.
| Gold held | 10 tola (above 7.5 tola, so zakat is due) |
| Value | 10 × Rs 2,75,000 = Rs 27,50,000 |
| Zakat (2.5%) | Rs 68,750 |
Example 2: gold and cash
Bilal's family holds 3 tola of 22k gold and Rs 2,00,000 in savings. Example silver rate: Rs 3,500 per tola.
| Gold value | 3 × Rs 2,75,000 = Rs 8,25,000 |
| Cash | Rs 2,00,000 |
| Total | Rs 10,25,000 |
| Silver nisab | 52.5 × Rs 3,500 = Rs 1,83,750 (total is above it) |
| Zakat (2.5%) | Rs 25,625 |
Even though the gold alone is under 7.5 tola, zakat is due because the holding is mixed.
Who pays: bride's gold, gifts and family jewellery
- The owner pays. Zakat is due on whoever owns the gold. Jewellery given to a bride as a gift belongs to her, so the zakat is hers.
- Someone else can pay for her, such as her husband or father, with her permission. Many families do this.
- Gold kept for a daughter's wedding but still owned by the parents is counted in the parents' wealth until it is actually gifted.
- You can pay in cash or in gold. Most people pay in cash at the current value.
Zakat goes to the groups named in the Quran, Surah At-Tawbah, verse 60, such as the poor, the needy and people in debt. If you hold plots for resale, these are zakatable too; our guide on 1 kanal in square feet helps you value land by area.
This guide explains the commonly followed Hanafi method in general terms. For unusual situations, such as gold held in a business, pledged gold or long-term debts, consult a qualified mufti.
Frequently asked questions
How much gold makes zakat due?
7.5 tola (87.48 grams) if gold is your only zakatable asset. If you also have cash, savings or other assets, the combined value is compared with the silver nisab.
Is zakat due on gold jewellery that is worn?
Yes, according to the Hanafi school, which most people in Pakistan follow. Some other schools exempt jewellery in regular personal use.
Which rate should I use, 24k or 22k?
Use the current rate for the purity of your gold. Most jewellery in Pakistan is 22k or 21k, which is priced lower than 24k.
Who pays zakat on a wife's gold?
The wife, because she owns it. Her husband or another family member can pay it on her behalf with her permission.
Can I pay zakat on gold in cash?
Yes. You can pay 2.5% of the gold's value in cash, which is how most people pay.
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