Zakat Guides

Zakat on Gold: How to Calculate It (2.5%)

By the Editorial Team · reviewed against our sources · updated September 2026 · guidance, not a fatwa

How much zakat do you pay on gold?

The zakat rate on gold is a flat 2.5% (one-fortieth) of its value, paid once for each completed lunar year (hawl) that you own it. The rate itself is agreed upon across all mainstream Sunni schools — Hanafi, Maliki, Shafiʻi and Hanbali. What changes from person to person is the amount of gold you hold and its market price on your zakat due date. To work out how much zakat is due on your gold, you only need two figures: the total weight of zakatable gold you own and the current price of gold per gram. You can enter both into our zakat calculator to get an instant figure, or follow the manual method below.

Zakat is always assessed on current market value, not what you originally paid. If you bought a gold chain years ago at a lower price, you still value it at today’s rate. This is because zakat is a charge on wealth as it stands on your due date, not a tax on your profit.

What is the nisab for gold?

Nisab is the minimum amount of wealth a Muslim must own before zakat becomes obligatory. For gold, the nisab is 87.48 grams of pure gold (equivalent to 20 mithqal in classical measure). If the gold you own reaches or passes this threshold and a full lunar year passes, zakat is due. If your gold alone is below 87.48g but you also hold cash, silver or trade goods, you generally combine them and compare the total against the nisab — most contemporary scholars recommend using the lower silver nisab when mixing asset types, because it captures more wealth for the benefit of eligible recipients. See our dedicated nisab guide for the current monetary threshold.

How to weigh and value your gold

Start by weighing all the gold you intend to assess, in grams. Kitchen or jewellery scales work; many jewellers will also weigh items for free. Next, separate items by their karat (purity), because higher-karat gold is worth more per gram. The general valuation formula is:

Zakatable value = weight (g) × purity factor × gold price per gram (24k) × 0.025

Some people prefer to look up the live per-gram price for each specific karat (for example, a 22k per-gram rate) and skip the purity factor. Either method gives the same result as long as you are consistent. Prices change daily, so use the rate on your actual zakat due date.

Karat differences: 24k, 22k and 18k

Karat measures how much of an item is pure gold out of 24 parts. Pure gold is 24k; jewellery is usually alloyed for durability. Only the gold content is valued for zakat — the alloy metals are ignored. The table below shows the purity factors and a worked per-gram value assuming an illustrative 24k price of 60 (in your local currency) per gram. Replace this with the real price on your due date.

So 50 grams of 22k gold, at an illustrative 24k price of 60/gram, is worth 50 × 54.96 = 2,748. Zakat would be 2,748 × 0.025 = 68.70.

Zakat on gold jewellery you wear: the key madhhab split

This is the single most-asked question about gold, and the schools genuinely differ. State the position of your own madhhab, or ask a local scholar, before deciding.

• Hanafi school: Zakat is due on all gold that reaches nisab, including jewellery worn for personal use. Under this view, a woman’s everyday gold jewellery is zakatable each year.
• Shafiʻi, Maliki and Hanbali schools: Gold jewellery kept and worn for lawful personal use (adornment) is generally exempt from zakat. However, jewellery held as an investment, hoarded, or owned in a quantity considered excessive or extravagant is zakatable even in these schools.

Because of this difference, many people who follow the majority view still choose to pay zakat on worn jewellery as a precaution, since it is charitable and the difference is a genuine scholarly disagreement. Investment gold — anything not primarily for personal adornment — is zakatable in every school.

Gold coins, bars and gold ETFs

Gold coins (such as sovereigns or bullion coins) and gold bars are pure investment or store-of-value assets, so they are zakatable at 2.5% of market value in all four schools, with no jewellery exemption. Physical gold you hold through an allocated scheme is treated the same way. For a gold ETF or a fund that holds physical gold on your behalf, zakat is due on the value of your holding that represents actual gold. If the fund publishes a zakatable percentage, use that; otherwise treat the gold-backed value as fully zakatable. Paper gold that is purely a price contract with no backing raises separate permissibility questions best referred to a scholar.

Zakat on gold per tola (South Asia)

In South Asia gold is often measured in tola rather than grams. One tola is approximately 11.66 grams, so the 87.48g nisab equals about 7.5 tolas. To find zakat on, say, one tola of gold: 11.66g × the per-gram price for that karat × 0.025. If 1 tola of 22k gold is worth 640 in your currency, the zakat on it is 640 × 0.025 = 16. Note that traditional tola weight can vary slightly by region (some use 11.664g), so confirm the local standard.

Worked examples

To combine, add the values of all zakatable gold, confirm the total plus your other wealth meets nisab, and apply 2.5% once for the year. Our step-by-step calculation guide walks through combining gold with cash and other assets.

When is zakat on gold due?

Zakat becomes due after you have owned wealth at or above the nisab for one full lunar year (hawl). Pick a fixed zakat date each year (many use a date in Ramadan for convenience) and value your gold on that date. If your wealth dipped below nisab briefly during the year but was above it at both the start and end of the year, most scholars still consider the year complete. If it fell to zero, the count restarts.

Common mistakes to avoid

• Valuing gold at purchase price instead of current market value.
• Forgetting to convert karat — paying on 22k as if it were pure 24k, or vice versa.
• Assuming jewellery is always exempt (Hanafis pay) or always due (the majority exempt personal-use items).
• Overlooking small items — add up every piece before comparing to nisab.

Once you know your total, use the zakat calculator on our homepage to confirm the figure, and compare gold against silver and cash if you hold a mix. If you are new to the topic, our introduction to zakat explains the wider obligation.

This is general guidance only, not a fatwa; rulings vary by madhhab; consult a qualified scholar for your situation.

Frequently asked questions