What is Nisab in Islam? | Understanding the Zakat Threshold

Nisab is a metric used to determine the minimum amount of wealth a Muslim must possess before they are required to pay Zakat, one of the Five Pillars of Islam.

Established by Prophet Muhammad (ﷺ), it’s linked to the current price of 87.48 grams of Gold or 612.36 grams of silver.

Now, Muslims compute this Nisab threshold by quoting these weights against their local currency.

Why Nisab Matters

• It calculates Zakat nisab eligibility.
• Ensures fairness (only those above a certain wealth threshold are paying).
• It assists in redistributing wealth to the needy and the poor.

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How to Calculate Nisab for Zakat 2025

To find your Nisab 2025 value:

• Check current market rates for gold or silver.
• Multiply the rate per gram by 87.48 (gold) or 612.36 (silver).
• Compare your total savings/assets to this value.

Example Calculation (March 2025)

• Gold rate: 62/gram→∗∗87.48gx62/gram→∗∗87.48gx62 = $5,423.76**
• Silver rate: 1.6/gram→∗∗612.36gx1.6/gram→∗∗612.36gx1.6 = $979.78**

Pro Tip: Most scholars recommend using silver Nisab (lower threshold) to maximize help for Zakat recipients.

Gold Nisab vs. Silver Nisab: Which One Should You Use?

Gold Nisab (Higher Threshold)

• Used by most madhaib (Islamic schools of thought).
• 2025 value: ~$11,016 (varies by currency).

Silver Nisab (Lower Threshold)

• Preferred by the Hanafi madhab.
• 2025 value: ~$998.76 (more inclusive).

Key Difference: Silver Nisab allows more people to qualify for Zakat, benefiting the poor and needy.

Nisab Threshold According to the Hanafi Madhab

The Hanafi school uses silver Nisab (612.36g) for two reasons:

• Historical context: Silver was the standard currency in early Islam.
• Social welfare: A Lower threshold means more wealth is redistributed.

Latest Nisab Values for March 2025 (in Local Currency)

Currency	Gold Nisab (87.48g)	Silver Nisab (612.36g)
USD	$10,975	$998.76
AUD	$11,016	$998.76
GBP	£8,742	£795.50

Note: Rates fluctuate monthly—always verify before paying Zakat.

What Does ‘Hawl’ Mean in Zakat Calculation?

Hawl — the Islamic lunar year (354 days). You must:

• Have wealth in excess of Nisab for one Hawl.
• If you are still eligible, pay 2.5% Zakat.

For example, if you hit Nisab on Ramadan 1, 2025, your Zakat becomes due on Ramadan 1, 2026.

Who is Obliged to Pay Zakat Based on Nisab?

You must pay Zakat if you:

✅ Own wealth ≥ Nisab threshold (gold/silver value).
✅ Maintain it for one Hawl.
✅ Are free from debt exceeding assets.

Exemptions: Those below Nisab or in debt.

Who is Eligible to Receive Zakat According to Islam?

The Quran lists 8 categories of Zakat recipients:

• The poor (al-fuqara) – Those with no income.
• The needy (al-masakin) – Struggling but not destitute.
• Zakat administrators – Those collecting/distributing Zakat.
• New Muslims – To strengthen their faith.
• Freeing captives – Modern-day refugees or slaves.
• Debt-ridden individuals – Unable to repay loans.
• In the cause of Allah – Islamic projects, education.
• Travelers in need – Stranded with no resources.

Historical Background of Nisab in Islam

How the Prophet Muhammad (ﷺ) Set the Nisab

The Nisab threshold was established to:

• Standardize Zakat payments.
• Ensure only the financially capable are paid.
• Use gold and silver as universal measures.

Traditional Weights in Grams

• Gold: 87.48 grams (≈7.5 tola).
• Silver: 612.36 grams (≈52.5 tola).

Why Use Silver Nisab in Modern Times?

Silver Threshold vs. Gold Threshold

• Silver: More inclusive (lowers the Nisab threshold).
• Gold: Higher bar (fewer people qualify).

Islamic Relief and other charities advocate for a silver Nisab to aid more Zakat recipients.

Tools and Resources: Use Our Zakat Calculator

Struggling with math? Try a Zakat calculator to:

• Automatically determine your Nisab.
• Calculate 2.5% of your eligible wealth.

Tip: Update rates monthly—gold and silver prices change!

Why Zakat is the Fourth Pillar of Islam

It purifies one’s wealth, teaches against greed and strengthens the economy of Islam. It’s not charity — it’s the right of the poor.

Make the Most of Ramadan: Donate Your Zakat

It is the month of Ramadan, in which Zakat is given (rewards multiplied in thousands)!

Your action step: Do the math, pay the 2.5%, and support the needy.

FAQs

What is the Nisab for Zakat 2025?

This system is dependent on gold (10,975)* or silver(10,975)* or silver(998.76) rates.

How do I calculate Nisab?

Take current gold/silver prices and multiply by 87.48g or 612.36g.

Which is better: gold or silver Nisab?

Silver encompasses more, but scholars disagree.

What if my wealth dips below Nisab during the year?

Reset your Hawl—you must maintain Nisab for 354 days.

Can I pay Zakat in installments?

Yes, but the entire amount must be paid within the year.

Is Zakat due on savings only?

No — it covers cash, Gold, investments and business assets.

Who cannot receive Zakat?

Your dependents (husband/wife/children) or wealthy individuals

What’s the penalty for not paying Zakat?

It’s a cardinal (major) sin — there is no barakah (blessing) in wealth.

Can I give Zakat to non-Muslims?

Is it permitted to give Zakat to non-Muslims?

How often is Zakat paid?

Once per lunar year, if you meet Nisab.