I was talking with a friend about the gold she has at home, and suddenly she asked me: Is there Zakat on gold? Honestly, this question is one of the most important we can imagine. Zakat is not just an obligation; it’s purification of both the soul and wealth, and gold has some special rulings.

The first thing you need to know: Zakat on gold is obligatory if it reaches a certain threshold (about 85 grams of pure gold), and then it remains for a full Hijri year. When these conditions are met, you are required to pay 2.5% of the value of the gold. Very simple in terms of percentage, but the details can sometimes be complicated.

The issue that confuses many: Is there Zakat on the gold you wear daily? In fact, scholars have disagreed on this. The majority of scholars say that gold used for daily adornment (rings and bracelets) does not have Zakat on it, but if you have saved gold or gold for sale, then Zakat is obligatory.

But if you own 18-karat gold, for example (which has less purity), how do you calculate Zakat? The calculation is simple: First, 18-karat gold contains about 75% pure gold. If you have 100 grams of 18-karat gold and the price per gram of pure gold is 400 riyals, then you have 75 grams of pure gold = 30,000 riyals. Zakat = 30,000 × 2.5% = 750 riyals.

Of course, the Zakat threshold for 18-karat gold is different from 24 or 21-karat gold. 24-karat has a threshold of 85 grams, 21-karat about 97 grams, while 18-karat’s threshold is about 113 grams (because of lower purity). So if you have 100 grams of 18-karat gold, you haven’t reached the threshold yet, so there is no Zakat on it now.

Another important point: Non-material gold (gold investment funds and stocks) also has Zakat on it. If you are invested in traded gold funds, you should pay Zakat from their market value at the same rate.

Now, who is required to pay Zakat? Any adult, sane Muslim who owns gold reaching the threshold and it has remained for a full year. Zakat is given to the poor, the needy, those working to collect it, and other categories specified in the Quran.

An important point: Do not delay Zakat without a valid reason. When a year passes, it is obligatory to pay it immediately. You can pay it in gold or cash equivalent to its market value.

In short, whether you own 24-karat, 21-karat, or even 18-karat gold, the principle is the same: if it reaches the threshold and a year passes, Zakat is obligatory. The calculation is simple, and the reward from Allah is great. Zakat does not diminish wealth; rather, it increases barakah in it, and most importantly, it promotes social solidarity.