The nisab threshold determines who owes Zakat — but the gold and silver standards produce wildly different numbers. Here's why it matters.
Gold or Silver? The Nisab Standard
Nisab is the minimum wealth required before Zakat becomes obligatory. It is measured using a bi-metallic standard, based on either gold or silver.
According to the Shafi'i, Maliki, and Hanbali schools, nisab is 85g of gold or 595g of silver. The Hanafi school sets it at 87.48g of gold or 612.36g of silver, due to historical variations in the weight of the mithqal (gold) and dirham (silver).
Many scholars recommend using silver, as its lower value allows more people to qualify for Zakat, increasing support for those in need. Others prefer gold, as it better represents significant wealth, ensuring that only those with substantial financial stability are obligated to give.
The complication is that there are two nisab standards, and they produce dramatically different numbers.
The Two Standards
| Standard | Weight | Approx. CAD Value |
|---|---|---|
| Gold (majority: 85g) | 85 grams of gold | ~$10,000–$13,000 |
| Gold (Ḥanafī: 87.48g) | 87.48 grams (20 mithqal) | Slightly higher |
| Silver (majority: 595g) | 595 grams of silver | ~$500–$800 |
| Silver (Ḥanafī: 612.36g) | 612.36 grams (200 dirhams) | Slightly higher |
The gold nisab is roughly 15–20× higher than the silver nisab. That's not a rounding difference — it fundamentally changes who owes Zakat.
Why the Difference Exists
In the Prophet's time ﷺ, gold and silver had a roughly fixed exchange ratio (~1:10 to 1:12). The two nisab thresholds were effectively equivalent. A person who had 85g of gold typically had wealth comparable to someone with 595g of silver.
Today, that ratio is closer to 1:80 or 1:100. Gold has appreciated enormously relative to silver. The result: the two standards that once identified the same group of people now draw very different lines.
Scholarly Positions
Silver Standard
Most scholars in the Hanafi school historically favoured the silver standard (or its cash equivalent). The reasoning: because the silver nisab is lower, it captures more people as eligible to pay Zakat, which increases the pool of funds available for the poor. In doubt, the more cautious position prevails — if you might owe Zakat, you should pay it.
This is the position taken by many classical Hanafi texts, including:
- Ibn Hamza al-Tusi, al-Wasilah ila Nayl al-Fadilah
- Al-Sugdi, al-Nutaf fi al-Fatawa
Gold Standard
Many contemporary scholars — including those in the Shafi'i, Hanbali, and Maliki schools, as well as some modern Hanafi scholars — lean toward the gold standard. Their reasoning: the gold nisab more accurately reflects the level of wealth the Prophet ﷺ intended as the threshold. Using silver today would obligate people who are, by any modern measure, not wealthy.
Yusuf al-Qaradawi (Fiqh al-Zakah) endorses the gold standard, arguing that gold better preserves the original intent of nisab as a marker of genuine surplus wealth.
The Practical Impact
Consider a Canadian Muslim with $5,000 in savings and no debts:
- Under the silver nisab (~$600): They owe Zakat — about $125.
- Under the gold nisab (~$12,000): They owe nothing.
Both positions are legitimate. Neither is "wrong." But the choice has real consequences for real people.
What Canadian Organizations Do
When you look at an organization in the ZakatView Directory, you'll see which nisab standard it uses. Most Canadian organizations specify one of:
- Gold — 85g (Majority) — The most common among Canadian orgs
- Gold — 87.48g (Ḥanafī) — Slightly higher, using the classical Hanafi mithqal
- Silver — 595g (Majority) — Less common but used by some Hanafi-oriented orgs
- Silver — 612.36g (Ḥanafī) — The classical Hanafi dirham
Some organizations don't specify, which makes it harder for donors to understand how they're assessing eligibility.
See which nisab standard each Canadian Zakat organization uses — and whether they specify one at all.
How to Decide
If you're calculating your own Zakat, the choice is a personal (or scholarly) one. Here are the considerations:
- Follow your school. If you follow a specific madhab, its ruling is your default.
- Consult a scholar. If you're unsure, a qualified scholar can advise based on your circumstances.
- When in doubt, be cautious. The silver standard ensures you're paying if there's any question.
Try both standards side by side — our calculator shows your Zakat under the gold and silver nisab so you can see the difference.
Sources
- Quran 9:60 — the verse establishing Zakat as an obligation
- Qaradawi, Yusuf. Fiqh al-Zakah — endorses the gold standard as better preserving the original intent of nisab
- Ibn Hamza al-Tusi. al-Wasilah ila Nayl al-Fadilah — classical Hanafi position favouring the silver standard
- Al-Sugdi. al-Nutaf fi al-Fatawa — classical Hanafi source supporting the silver nisab
- Hadith — the nisab thresholds of 85g gold / 595g silver are derived from prophetic traditions recorded in the major hadith collections