The Nisab threshold for gold is 87.48 grams (equivalent to 7.5 tola or 3 troy ounces). If you hold gold — in any form — worth at least this amount for a full lunar year, Zakat is due on the entire holding at 2.5%.
Because gold prices fluctuate, you check your total on your Zakat due date — the anniversary of when you first reached the Nisab — not at the year's highest or lowest point.
Does Zakat Apply to Worn Jewellery?
This is genuinely one of the more debated questions in Islamic jurisprudence. Here is where the four major Sunni schools stand:
| School | Position on worn jewellery |
|---|---|
| Hanafi | Zakat is due on all gold jewellery, whether worn or stored |
| Maliki | No Zakat on jewellery worn for personal use; Zakat due on excess or investment gold |
| Shafi‘i | No Zakat on jewellery used normally for adornment; different opinion if for investment |
| Hanbali | Generally no Zakat on permitted jewellery worn by women; Zakat on any gold stored or given to men |
Given this difference, the safer and more cautious position — the one most contemporary scholars lean toward when advising ordinary Muslims — is to include the value of your gold jewellery in your Zakat calculation. If you disagree with this approach, you should consult a scholar from your own tradition and explain your circumstances.
Zakat on Gold ETFs, Coins, and Bars
Gold that is held as an investment — bullion bars, coins, ETFs, digital gold accounts — is almost universally agreed to be zakatable. It is wealth held with the intention of preserving or growing value, which is the very scenario Zakat addresses. Calculate the market value on your Zakat date and pay 2.5%.
What About Gold Debt?
If you bought gold on credit and still owe a debt on it that is immediately due, you may deduct that amount from your zakatable gold. Only debts that are payable now — not future installments — can be deducted.