Question
(#243)
As-salamu alaykum,
I hope you’re doing well.
I have a question regarding Zakat on savings. If I have money in my bank account, how should I calculate my Zakat? For example, if I had $5,000 last Ramadan and now have $8,000 this Ramadan, do I pay Zakat only on the $5,000 I saved, or is it based on my total current balance? How does it work?
Answer
بسم الله الرحمن الرحيم
السلام عليكم و رحمة الله و بركاته
حامدا و مصليا و مسلما
Muhtaramah
We have received your query regarding Zakaat, our response is as follows:
We are not aware of all the details regarding your situation, therefore it will be difficult for us to provide a clear answer.
However, from your question what we understand is that you had become Sahib-e-Nisaab (acquired the threshold of Zakaat) last year in Ramadan (for example on the 1st Ramadan) and this Ramadan your total assets total to $8000 NZD, and you do not have any liabilities which will cause your assets to reach below the Nisab after deducting the liabilities from your assets. Thus, you will need to give in Zakaat 2.5% of the total amount you possessed on the 1st Ramadan i.e. 2.5% of $8000.00= $200.
You may also refer to the following answer on the Darul Ifta website:
https://darulifta.org.nz/zakaat-calculation/s
And Allah Ta’ala knows best
Answered by:
Muhammad Irshad Motara
27th Ramadan 1446
27th March 2025
