Zakat, made clear

Zakat is the third pillar of Islam. It is a set share of certain kinds of wealth that a Muslim hands on each year to people the Quran names as eligible. It is a duty, not a favour, and the people who receive it are taking what is rightfully theirs.

The word carries the sense of purity and growth. Giving zakat is understood to cleanse what remains, to soften the heart against greed, and to keep wealth moving through a community rather than sitting still.

Zakat is owed by an adult Muslim whose zakatable wealth stays at or above a minimum amount, called the nisab, for one full lunar year. That year is known as the hawl. When the year is complete, the amount due is 2.5 percent of the zakatable wealth, which is one fortieth.

Many people pick a fixed date to work it out each year, such as a day in Ramadan, so that it becomes a steady habit rather than a worry. Farm produce and livestock have rules of their own and are not covered here.

This page follows the common Sunni approach to zakat on savings. In Shi'a law, zakat applies to a narrower list of items, such as coined gold and silver, certain crops and livestock, while a separate duty called khums applies to surplus income each year. Shi'a readers should follow the guidance of their marja'.

The nisab is measured against the value of gold or silver, the two forms of wealth used in the time of the Prophet (peace be upon him). Because metal prices move every day, the nisab in your own currency moves too.

Many scholars and charities recommend the silver benchmark today, because its lower figure brings more people into giving and so reaches more people in need. Others hold to the gold benchmark. Both are established positions, so follow the scholar or community you trust.

Debts. Many scholars allow you to take away short-term debts that are due now, such as a bill or a repayment that falls due, before working out zakat. The schools of law differ on the details, especially for long-term debts like a mortgage, so ask about your own case if your debts are large.

The Quran itself names the people zakat is for, in a single verse.

In practice, most zakat today is given to the poor and the needy. Scholars generally agree that it should not go to your own parents, grandparents, children or grandchildren, or from a husband to his wife, since these are people you already provide for. Other relatives in need are often a good place to start.

Zakat al-Fitr is a small, fixed gift paid at the close of Ramadan. Its purpose is simple: that everyone, including the poorest, can share in the joy of Eid.

• Who pays: every Muslim who can afford it, on behalf of themselves and the people they support, such as young children. The schools differ slightly on what counts as being able to afford it.
• When: before the Eid al-Fitr prayer. Many people give it in the last days of Ramadan so that it reaches families in time.
• How much: the traditional measure is one sa' of a staple food, such as rice, wheat, dates or barley. A sa' is a measure of volume, roughly 2.5 to 3 kg depending on the food.
• Food or money: many communities now pay a cash equivalent. Some schools of law permit this and others ask that food itself be given, so follow the practice of your own school.

Local mosques usually announce the amount per person each Ramadan, based on local food prices.