I was thinking about a topic that many people overlook despite how important it is—zakat on gold. Thank God, Islam has explained everything to us in detail, but unfortunately not everyone knows how to calculate the zakat on their gold correctly.

First thing we need to understand: the nisab for zakat on gold is 85 grams of pure gold. That means if you have less than that, you do not have any zakat due. But once you reach that amount and a full lunar year passes, you become obligated to pay the zakat.

The percentage is very clear: 2.5% of the market value. That means if you have 100 grams of 24-karat gold and the price per gram is 400 riyals, the total value is 40,000 riyals, and the zakat due is 1,000 riyals. Very simple.

But the important thing is to understand that the nisab for zakat on gold is not limited to jewelry only. If you have gold for saving or investment, or even gold funds in the stock market (ETFs), all of this is included in zakat. Jurists differed regarding the jewelry you use daily for adornment, but they agree on saved and investment gold.

Regarding the different karats: 21-karat gold has a nisab of about 97 grams, and 18-karat gold has a nisab of about 113 grams. The reason is that each karat has a different percentage of pure gold. That’s why when calculating zakat, you multiply the total weight by the purity percentage.

A very important point: having the nisab of gold for zakat does not mean you pay zakat right away. The gold must be in your full possession for a whole year. If you buy new gold, there is no zakat on it until a year has passed.

As for the recipients, zakat is distributed to the poor and needy, those employed to collect it, those whose hearts are to be reconciled, those in bondage (freeing slaves), those who are in debt (indebted), in the cause of Allah, and the traveler/wayfarer. There is no such thing as paying zakat to whoever you want. Sharia clearly defined the categories precisely.

There are also other important matters: zakat should be paid immediately after the completion of the lunar year—do not delay it without a valid reason. And it should not be paid from unlawful (haram) money. Showing off (riya’) invalidates it. And most importantly—your intention must be correct and for the sake of Allah alone.

The truth is that understanding the nisab of zakat on gold and calculating it correctly brings a great deal of peace of mind. You purify your wealth, help those in need, and at the same time you obey Allah. Zakat is not only a financial obligation—it is an act of worship that brings a person closer to their Lord and achieves social solidarity. So if you have gold, calculate it properly and give it with a good heart.