When Is Zakat Due?

Zakat is not on your income, and it is not on your net worth. It is on your zakatable wealth after one full year has passed.

That year is called the hawl, and it starts the first time your wealth crosses the nisab threshold. That date becomes your personal zakat anniversary, your annual check date. If you use a lunar (Hijri) calendar, the rate is 2.5%. If you use a solar (Gregorian) calendar, the rate is slightly higher at 2.5775%, because a solar year is about 11 days longer than a lunar one.

Many Muslims pick a date in Ramadan because it is easy to remember and aligns with the spirit of the month. The key thing is to have a date and stick to it, because without a consistent date there is no consistent calculation. For the full discussion on how the schools handle the hawl differently, what happens if your wealth dips mid-year, and the Gregorian calendar option, see Your Zakat Anniversary.

The Snapshot

Once a year, on your zakat date, you take a snapshot of your wealth. You do not need to stress about what your portfolio did last Tuesday or what the gold price was three months ago. Just freeze the frame on that one day.

Zakatable Assets - Eligible Deductions = Zakatable Net Worth

Compare that number to the nisab. If you are above it, apply the rate:

Zakatable Net Worth x 2.5% = Your Zakat

One snapshot, one number, one payment to eligible recipients.