Zakat Calculator Usa 2014
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Reviewed by Calculator Editorial Team
Zakat is an obligatory Islamic tax on savings and wealth. In the United States, calculating zakat requires understanding the specific requirements and rates applicable in 2014. This guide explains how to compute your zakat obligation using the 2014 rates and provides a step-by-step calculation process.
What is Zakat?
Zakat is one of the Five Pillars of Islam, alongside Shahada, Salah, Zakat, and Hajj. It is a mandatory charitable contribution that Muslims must pay annually on their savings and wealth that exceed the nisab (minimum threshold).
The primary purpose of zakat is to purify wealth, redistribute economic resources, and support those in need. It is considered a form of worship and a way to fulfill the Islamic principle of justice and equity.
Zakat is not the same as income tax or wealth tax. It is a religious obligation rather than a government tax. The amount of zakat is determined by Islamic law and is typically 2.5% of one's savings and wealth above the nisab.
Zakat Requirements
To be eligible for zakat, certain conditions must be met:
- Nisab: The wealth must exceed the minimum threshold (nisab). In 2014, the nisab was approximately $1,200 USD for cash and savings, and $1,500 USD for gold and silver.
- Ownership Duration: The wealth must have been owned for at least one lunar year (approximately 354 days).
- Intent: The wealth must be owned with the intention of benefiting oneself or one's family.
- No Debt: The wealth must not be owed to others.
If any of these conditions are not met, zakat is not obligatory.
How to Calculate Zakat
Calculating zakat involves several steps:
- Determine Eligible Assets: Identify savings, cash, gold, silver, and other assets that meet the nisab and ownership requirements.
- Calculate Total Wealth: Sum the value of all eligible assets.
- Apply Zakat Rate: Multiply the total wealth by the zakat rate (2.5% in 2014).
- Distribute Zakat: Pay the calculated amount to eligible recipients, such as the poor, needy, and those in debt.
Zakat Formula:
Zakat = (Total Wealth × Zakat Rate) / Number of Poor
Where:
- Total Wealth = Sum of all eligible assets
- Zakat Rate = 2.5% (0.025) in 2014
- Number of Poor = Typically 8 (as per Islamic jurisprudence)
Zakat Calculation Example
Let's calculate zakat for a person with the following assets in 2014:
- Savings in bank: $5,000 USD
- Gold jewelry: $3,000 USD
- Cash in wallet: $2,000 USD
Step 1: Calculate Total Wealth
Total Wealth = $5,000 + $3,000 + $2,000 = $10,000 USD
Step 2: Apply Zakat Rate
Zakat Amount = $10,000 × 0.025 = $250 USD
Step 3: Distribute Zakat
The $250 zakat amount is typically divided among 8 poor individuals, resulting in $31.25 per person.
This example assumes the total wealth exceeds the nisab and meets all other zakat requirements. The actual amount may vary based on individual circumstances.
Zakat Rates in 2014
The zakat rate in 2014 was 2.5% (0.025) for most assets. However, different types of wealth have different nisab thresholds:
| Asset Type | Nisab (2014) | Zakat Rate |
|---|---|---|
| Cash and Savings | $1,200 USD | 2.5% |
| Gold | $1,500 USD | 2.5% |
| Silver | $1,600 USD | 2.5% |
| Stocks and Shares | $1,200 USD | 2.5% |
These rates were based on the average market value of gold, silver, and other assets in 2014.
Frequently Asked Questions
- What is the zakat rate in 2014?
- The zakat rate in 2014 was 2.5% for most assets. This rate applies to cash, savings, gold, silver, and other eligible wealth.
- What is the nisab for zakat in 2014?
- The nisab in 2014 was approximately $1,200 USD for cash and savings, $1,500 USD for gold, and $1,600 USD for silver. Wealth below these amounts does not require zakat.
- How often is zakat paid?
- Zakat is paid annually, typically at the end of the Islamic lunar year (approximately once a year).
- Who receives zakat?
- Zakat is distributed to eligible recipients, including the poor, needy, and those in debt. It is not paid to family members or friends.
- Is zakat tax-deductible?
- In the United States, zakat payments are generally not tax-deductible as charitable contributions, as they are considered religious obligations rather than voluntary donations.