Zakat is one of the five fundamental pillars of Islam and represents a mandatory act of worship for financially eligible Muslims. Among zakatable assets, gold holds a special position due to its historical role as wealth, savings, and adornment. Whether your gold is held as jewelry, coins, bars, or investment assets, Islamic law sets clear principles for calculating Zakat based on purity (karat) and net gold content.
Because gold is commonly owned in different purities—24K, 22K, and 18K—many Muslims struggle with accurate Zakat calculations. This detailed guide explains Nisab rules, purity adjustments, scholarly opinions, and step-by-step Zakat calculations to help you fulfill your obligation correctly and confidently.
Nisab for Gold: The Minimum Threshold for Zakat
What Is Nisab?
Nisab is the minimum amount of wealth a Muslim must own for one full lunar year (Hawl) before Zakat becomes obligatory.
Gold Nisab Value
The Nisab for gold is unanimously based on prophetic guidance and equals:
-
87.48 grams of pure (24K) gold
-
Approximately 7.5 tola or 3 ounces
Although Islamic law also recognizes silver Nisab (595 grams), gold Nisab is most commonly used when calculating Zakat on gold assets.
Important Nisab Rules to Remember
-
Nisab is calculated using pure gold content, not jewelry weight
-
All gold holdings are combined across purities
-
Market value changes, but 87.48g remains constant
-
Gold must be owned for one complete lunar year
Why Gold Purity Matters in Zakat Calculation
Zakat is payable only on the actual gold content, not on alloys or mixed metals. Therefore, understanding karat purity is essential.
24K Gold (99.9% Pure)
-
Considered pure gold
-
Entire weight is zakatable
-
Common in gold bars, coins, and bullion
22K Gold (91.7% Pure)
-
Contains approximately 8.3% alloy
-
Only 91.7% of total weight counts
-
Widely used in traditional jewelry
18K Gold (75% Pure)
-
Contains 25% non-gold metals
-
Only 75% of weight is zakatable
-
Common in modern and European jewelry
How to Calculate Zakat on Gold (Step-by-Step)
Step 1: List All Gold Assets
Include all forms of gold:
-
Jewelry
-
Coins
-
Bars
-
Stored or worn gold
-
Gold in different locations
Separate items by karat purity if possible.
Step 2: Convert Gold to Pure Gold Weight
Apply purity conversion:
-
24K: 100% of weight
-
22K: Weight × 0.917
-
18K: Weight × 0.75
Example:
100 grams of 22K gold
→ 100 × 0.917 = 91.7 grams pure gold
Step 3: Check Against Nisab
Add all converted pure gold amounts and compare to 87.48 grams.
Example Calculation:
-
50g (24K) = 50g pure
-
80g (22K) × 0.917 = 73.36g
-
60g (18K) × 0.75 = 45g
Total pure gold: 168.36g
✅ Above Nisab → Zakat is obligatory
Step 4: Calculate Zakat Amount (2.5%)
Zakat Formula:
Pure Gold (grams) × Current Gold Price × 2.5%
Example:
168.36g × $70 per gram × 0.025
= $294.63 Zakat due
Is Zakat Due on Gold Jewelry? Scholarly Views
Islamic scholars differ regarding personal-use gold jewelry:
Opinion 1: Zakat Is Obligatory (Hanafi View)
-
All gold is zakatable
-
Includes worn jewelry
-
Most widely followed opinion globally
Opinion 2: Jewelry Is Exempt (Maliki, Shafi‘i, Hanbali)
-
Personal-use jewelry not subject to Zakat
-
Gold held as savings or investment remains zakatable
📌 Many modern scholars advise paying Zakat on all gold to avoid doubt and fulfill the obligation safely.
Combining Gold with Other Zakatable Assets
Zakat applies to total wealth, including:
-
Cash & savings
-
Silver
-
Investments
-
Business inventory
-
Money owed to you
If your combined assets meet Nisab, Zakat becomes due—even if gold alone does not.
Gold with Gemstones or Mixed Materials
If gold jewelry includes:
-
Diamonds
-
Stones
-
Significant alloys
Then:
-
Only the gold portion is zakatable
-
Jewelers can estimate gold weight accurately
-
Gemstone value is excluded from Zakat
Using Current Gold Prices for Accuracy
Gold prices fluctuate daily. Always:
-
Use current market price per gram
-
Refer to reliable financial or bullion sources
-
Calculate Zakat at the time payment becomes due
Annual Zakat on Gold: Quick Checklist
✔ Determine your Zakat anniversary date
✔ List all gold assets
✔ Confirm karat purity
✔ Convert to pure gold equivalent
✔ Check current gold price
✔ Compare total to Nisab (87.48g)
✔ Calculate 2.5% Zakat
✔ Include other zakatable assets
Zakat on Gold: Practical Examples
Example 1: Mixed Gold Holdings
-
40g (24K) = 40g
-
120g (22K) × 0.917 = 110.04g
-
70g (18K) × 0.75 = 52.5g
Total: 202.54g pure gold
Zakat: 202.54 × price × 0.025
Example 2: Below Nisab Case
-
65g of 22K gold
-
65 × 0.917 = 59.6g pure gold
❌ Below Nisab → No Zakat on gold alone
✔ Check combined wealth
Digital Zakat Calculators: Helpful but Verify
Modern Zakat calculators:
-
Convert karats automatically
-
Pull live gold prices
-
Track annual reminders
⚠ Always double-check calculations manually for accuracy and peace of mind.
The Spiritual Meaning of Zakat on Gold
Beyond numbers, Zakat serves higher purposes:
-
Purifies wealth
-
Strengthens faith
-
Supports the needy
-
Promotes economic justice
-
Expresses gratitude to Allah
Precise calculation reflects sincerity, trust, and responsibility.
Final Thoughts: Precision with Sincere Intention
Calculating Zakat on gold requires understanding purity, Nisab rules, and market value, but its essence remains spiritual. By carefully accounting for 24K, 22K, and 18K gold, you ensure both religious compliance and ethical stewardship of wealth.
When uncertain, choose the safer opinion or consult knowledgeable scholars. May your Zakat purify your wealth, uplift others, and bring blessings in this world and the next.
May Allah accept your Zakat and reward your intention.