Zakat in the UAE (2025): Nisab, Assets and Accurate Calculation + Free Calculator
Learn what counts towards Zakat, how to check Nisab using gold/silver benchmarks, how to handle debts and business inventory, and when to pay (lunar year). Use our free Zakat Calculator to compute 2.5% on eligible assets precisely.
Updated: Oct 27, 2025 · 10 min read · By ADAD Team
Quick summary
- Threshold: Zakat is due when your eligible wealth equals/exceeds Nisab for a full lunar year (hawl).
- Rate: Standard rate is 2.5% (1/40) on zakatable assets after deducting immediate debts.
- Calculator: Use the Zakat Calculator to apply current gold/silver benchmarks and local currency values.
Nisab: gold vs silver benchmark
Nisab can be measured using the value of 87.48g of gold (~7.5 tola) or 612.36g of silver (~52.5 tola). Many scholars recommend the silver standard to benefit more recipients, while others use gold for closer parity with contemporary wealth. Our calculator supports both approaches.
Note: Spot prices fluctuate. We reference live AED rates through our exchange logic so your Nisab check reflects current market conditions.
What is zakatable? What is not?
Zakatable (examples)
- Cash on hand and bank balances
- Gold and silver jewelry (differences of opinion on personal jewelry; many include it)
- Business inventory and trade goods at wholesale value
- Investments (shares held for sale, certain liquid instruments)
- Receivables (money owed to you that is likely to be repaid)
Generally not zakatable
- Primary home, personal car, basic household items
- Long‑term fixed assets not held for sale (e.g., business machinery)
- Personal use jewelry (some opinions exempt; follow your school or local scholars)
Debts and liabilities
Deduct immediate liabilities due within the Zakat year (e.g., unpaid bills, short‑term debts). Long‑term debts can be deducted according to the installment due within the year; methods differ among jurists—follow a consistent approach advised by your scholar.
How to calculate Zakat (2.5%)
- Sum all zakatable assets (cash, gold/silver, inventory, receivables, eligible investments).
- Deduct immediate liabilities due within the lunar year.
- Confirm the net amount is above Nisab for a full lunar year.
- Apply 2.5% to the net amount.
Use our Zakat Calculator to perform these steps accurately with live AED conversion where needed.
Business inventory and shares
Merchandise for resale is zakatable at its wholesale value on your Zakat date. For shares, if held for trading, use market value; if held long‑term for dividends, some scholars assess underlying zakatable assets proportionally. Seek guidance to apply a consistent method.
Frequently Asked Questions
What is the Nisab threshold for Zakat in 2025?
Nisab is the minimum wealth threshold that makes Zakat obligatory. It is calculated based on either gold (87.48 grams of pure gold) or silver (612.36 grams of pure silver). In 2025, with gold prices around AED 280-300 per gram, the gold Nisab is approximately AED 24,000-26,000. The silver Nisab is lower (around AED 1,800-2,200). Most scholars recommend using the silver Nisab to be more inclusive of those who should pay Zakat.
Is Zakat obligatory on salary income?
Zakat is not directly due on salary as you receive it. Instead, Zakat is calculated on your savings that have been held for one complete lunar year (hawl) above Nisab. If you save AED 30,000 from your salary and it stays above Nisab for 12 lunar months, you pay 2.5% (AED 750) as Zakat. Money spent on living expenses before the year ends is not zakatable.
Do I pay Zakat on my house or car?
No. Personal assets used for daily living — your primary residence, car, furniture, clothing, and household items — are exempt from Zakat. However, if you own additional properties for investment or rental income, some scholars require Zakat on the rental income (after expenses) or on properties held for resale at market value.
Is gold jewelry subject to Zakat?
This is a matter of scholarly difference. The Hanafi school generally requires Zakat on all gold and silver, including jewelry worn regularly. The Shafi'i and Hanbali schools often exempt jewelry worn for personal adornment (within reasonable limits). In the UAE, many follow the opinion that personal jewelry is zakatable. Consult a local scholar for guidance specific to your situation.
How do I calculate Zakat on stocks and investments?
For stocks held for trading (buying and selling for profit), calculate Zakat on the full market value at your Zakat date. For stocks held long-term for dividends, some scholars say you pay Zakat only on the dividend income received, while others require calculating your proportional share of the company's zakatable assets. A common practical approach is to pay 2.5% on the market value of all stocks.
Can I deduct my debts before calculating Zakat?
Yes, you can deduct debts that are due within the coming lunar year from your zakatable assets. For example, if you have AED 50,000 in savings but owe AED 15,000 on a loan due this year, your zakatable amount is AED 35,000. Long-term debts (like mortgages) are treated differently — typically only the portion due within the year is deductible.
When should I pay Zakat — Ramadan or my personal anniversary?
You can choose either method. Many Muslims prefer paying during Ramadan for the increased spiritual reward, using Ramadan 1 as their annual Zakat date. Others use the anniversary of when their wealth first reached Nisab. The key is consistency — pick one date and calculate your Zakat on that same date every lunar year.
Who can receive my Zakat?
The Quran (9:60) specifies eight categories: the poor (fuqara), the needy (masakin), Zakat administrators, those whose hearts are to be reconciled, freeing slaves, those in debt, in the cause of Allah, and travelers in need. In practice, most Zakat is given to the poor and needy. You can give directly to individuals or through trusted organizations. In the UAE, the Zakat Fund (zakatfund.gov.ae) is an official channel.
This is a general guide based on mainstream Islamic jurisprudence. Always consult qualified scholars for rulings specific to your situation.