Religious Dues
Zakat With Confidence: A Guide for US Muslims
Everything you need to work out whether you owe Zakat, how much, and who it should reach — written for Muslims giving in the United States.
Zakat Basics
Understanding Zakat, Nisab & Its Value
What Is the Meaning of Zakat?
Zakat is one of the Five Pillars of Islam: an obligatory act of worship that purifies wealth by redistributing a fixed share of it to those in need. It is not charity in the voluntary sense — for those who meet the threshold, giving Zakat each year is a religious duty.
What Is Nisab?
Nisab is the minimum threshold of wealth a Muslim must hold before Zakat becomes due. Below this threshold, Zakat is not required.
What Is the Nisab Value?
Nisab is set using the value of gold or silver, and moves with the market price of each. Your Zakat guide should always be checked against a current nisab value.
Zakat Percentage: How Much Zakat to Pay
The Zakat rate is 2.5% of qualifying wealth held above the nisab threshold. For example, if your total assets — after any debts owed — amounted to $10,000, you would be required to pay $250 as Zakat.
What Does Zakat Apply To?
Zakat is calculated on qualifying wealth: cash and bank balances, gold and silver, investments and shares, business assets, and money owed to you, minus what you owe others. Working it out by hand can be difficult, which is why we built our own calculator.
Zakat Rules on Tax in the USA
WATAN USA is a registered US nonprofit, so Zakat given through us is treated the same as any other donation for tax purposes: it is tax-deductible, in addition to fulfilling your religious obligation.
Who Is Eligible to Receive Zakat?
- The poor
- The needy
- Travellers in need
- Those in debt
- Those who administer and collect ZakatAdded
- Those being held against their will or in slavery
- New Muslims and friends of the Islamic community
- Those in the cause of Allah
When to Pay Zakat
Zakat is due once a full lunar year has passed on wealth that stays above the nisab threshold. Many donors choose to calculate and give during Ramadan, when good deeds carry extra reward — read our Ramadan giving page for more.
Zakat al-Mal
Zakat al-Mal is Zakat on wealth — the general obligation described throughout this guide, covering cash, gold, investments and other qualifying assets.
Zakat al-Fitr
Zakat al-Fitr is a separate, smaller obligation given at the end of Ramadan, before Eid prayer, so that every Muslim can celebrate Eid regardless of means.
Administrators of Zakat
WATAN USA administers all Zakat contributions directly, distributing them to eligible recipients in line with the categories set out above, with our 100% donation commitment applying in full.