Not all wealth is subject to Zakat. Here's what counts, what doesn't, and where scholars agree — a practical guide for calculating your obligation.

What Wealth Is Zakatable?

Zakat applies to wealth that is productive or has the potential to grow. The classical scholars described this as al-mal al-nami — wealth with the capacity for increase. This principle is what separates zakatable assets from personal property.

The broad rule: if it's liquid, tradeable, or held as savings, it's likely zakatable. If it's a personal-use item that doesn't generate income, it's not.

Cash and Bank Accounts

All cash is zakatable. This includes:

  • Cash on hand — physical bills in your wallet, at home, or in a safe, regardless of currency
  • Bank accounts — checking, savings, GICs, term deposits, high-interest savings accounts
  • Foreign currency — convert to Canadian dollars at today's exchange rate on your Zakat date
  • Prepaid cards and digital wallets — any stored balance you control

There is no scholarly disagreement here. Cash is the most straightforward category of zakatable wealth. All four madhahib agree unanimously.

Example: You have $5,000 in checking, $20,000 in savings, and $2,000 in a GIC. Your total zakatable cash is $27,000. Zakat = 2.5% × $27,000 = $675.

Cryptocurrency and Digital Assets

Cryptocurrency is zakatable. Contemporary scholars treat it as a liquid, tradeable asset similar to cash or gold. Its current market value on your Zakat date is what counts.

This applies to all forms: Bitcoin, Ethereum, stablecoins, altcoins, and tokens. If you hold it and it has market value, it's part of your zakatable wealth.

The scholarly basis is strong. Crypto functions as a medium of exchange and a store of value. Whether scholars classify it as currency (thaman), a tradeable commodity (ʿurūḍ al-tijārah), or a digital asset sui generis, the conclusion is the same: the full market value is zakatable at 2.5%.

This also applies to precious metal ETFs (gold ETFs, silver ETFs). Because these represent ownership of physical metals, they follow the same rules as the metals themselves — 100% zakatable regardless of your investment calculation method. See Crypto, Cash, and Precious Metal ETFs in our investments article for more detail.

Gold and Silver (Investment)

Gold and silver held for investment or savings are always zakatable. This includes:

  • Bars and coins — bullion, collectible coins held for value
  • Unset gemstone-mounted pieces held primarily for investment
  • Gold/silver stored in a vault or safety deposit box

The calculator uses current market prices to convert weights to dollar values. Enter the weight in grams and select the purity, and the value is calculated automatically.

Note: Personal-use jewelry (gold or silver you wear) is a separate and more nuanced question. Scholars differ by school on whether it's zakatable. See Zakat on Jewelry for that discussion.

Investments

Stocks, mutual funds, ETFs, and other securities are zakatable, but how Zakat is calculated depends on whether you're a short-term trader (100% market value) or a long-term investor (zakatable assets method, commonly estimated at ~30%). Canadian-specific accounts like TFSAs, RRSPs, RESPs, FHSAs, and corporate accounts each have their own access and tax considerations.

See our dedicated articles:

Money Owed to You

If someone owes you money, whether it's a personal loan, a business receivable, or an outstanding mahr, it's still part of your wealth. Whether you pay Zakat on it now depends on the type of debt and your school of thought. The schools differ significantly, from including all debts immediately to deferring Zakat entirely until you receive repayment.

See Zakat on Money Owed to You for the full breakdown.

Business Assets

If you own a business, certain business assets are zakatable: cash, inventory, and receivables. Fixed assets used in operations (buildings, equipment, vehicles) are not.

See Zakat on Business Assets.

What Is NOT Zakatable

The following types of wealth are not subject to Zakat:

  • Your primary residence — the home you live in is not zakatable, regardless of value
  • Personal vehicles — cars, trucks, motorcycles used for personal transportation
  • Household furniture and appliances — items you use daily
  • Personal clothing — except gold or silver thread/ornaments (which follow jewelry rules)
  • Tools of your trade — equipment, tools, and machinery you use to earn a living
  • Real estate held for personal use — a cottage or vacation home you use, not rent out
  • Retirement pensions you can't access — employer-controlled pensions with no withdrawal option before retirement

The general principle: items used for personal living are not zakatable. Only wealth that is liquid, productive, or held for trade/investment is subject to Zakat.

An important distinction: Real estate held as an investment (rental properties, land purchased for resale) is treated differently. If you purchased property with the intention of reselling for profit, it becomes a trade good and its market value is zakatable. Rental income that accumulates as cash is also zakatable. But the property you live in is always exempt.

The calculator covers all zakatable asset categories: cash, crypto, gold, silver, investments, loans, and business assets. It automatically handles the math for each category.

Open the Calculator

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