The Method of Calculating Zakah

The wealth for which Zakah is obligatory and that which is exempt from it.

Allah ﷻ has stated that any Muslim in possession of wealth is obligated to pay Zakah.

In the last Articles we discussed the following:

The conditions that make Zakah obligatory upon a person. The aspect of nisaab.

Those things on which a person is obligated to give Zakah.

Now that all of these things are clear, we need to look at how one would calculate the total amount of Zakah payable.

• First look at the various items upon which Zakah is payable.
• Make a note of possessed items.
• Calculate the total value for each of the categories of items on which Zakah is payable.
• Add the values of the items to obtain a total value. (Excluded from this total will be livestock and fresh produce, since the rate for these is different.)
• Once the total has been obtained, calculate the immediate household needs.
• Also list the value of the liabilities.
• The needs and liabilities would then be added.
• If the needs and liabilities are more than the assets then it would not be obligatory to give Zakah.
• If the total is more than the nisaab, then give Zakah on this amount.
• The amount of Zakah payable will be 2.5% of the total after deducting the needs and liabilities from the assets.
• Zakah will also be payable separately on agricultural produce at the time the crop is ripe. Give either 5% or 10% depending on how the crop was watered.
• Zakah on livestock would also be calculated separately since the rate for this is not 2.5%.

The following table might be a simple example of a table for the calculation of Zakah.