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Zakat Calculator Usa 2018

Reviewed by Calculator Editorial Team

Calculate your Zakat obligation for 2018 using this comprehensive calculator. Zakat is an Islamic obligation for Muslims to give a portion of their savings to those in need. This calculator helps determine how much you owe based on your financial situation.

How to Use This Calculator

Using this Zakat calculator is simple:

  1. Enter your total savings and assets in the calculator panel on the right.
  2. Select the appropriate calculation method (Nisab threshold).
  3. Click "Calculate" to see your Zakat obligation.
  4. Review the detailed breakdown and recommendations.

The calculator uses the standard Islamic calculation method for Zakat in the USA for 2018. All calculations are based on the current Islamic financial standards.

Zakat Basics in the USA

Zakat is one of the Five Pillars of Islam and is mandatory for Muslims who meet certain financial thresholds. In the USA, Zakat is calculated based on savings and assets that exceed the Nisab threshold.

The key requirements for Zakat eligibility in the USA are:

  • Muslim status
  • Possession of savings/assets exceeding the Nisab threshold
  • Ownership of the assets for at least one lunar year
  • Intent to keep the assets (not for immediate spending)

Important Note

Zakat is not a tax but a religious obligation. The amounts calculated here are based on Islamic financial principles and may differ from tax calculations.

Calculation Method

The standard Zakat calculation formula is:

Zakat Formula

Zakat = (Total Savings × Zakat Rate) - Total Debts

Where Zakat Rate is typically 2.5% (1/40) for most assets.

The calculator uses the following assumptions:

  • Zakat rate of 2.5% (1/40)
  • Nisab threshold of $1,335 in 2018 (based on gold price)
  • Exclusion of assets below the Nisab threshold
  • Deduction of any outstanding debts

For 2018, the Nisab threshold was $1,335 based on the gold price in the USA. This means you only owe Zakat on savings and assets that exceed this amount.

Worked Example

Let's calculate Zakat for a Muslim with $20,000 in savings and no debts:

  1. Total savings: $20,000
  2. Zakat rate: 2.5% (1/40)
  3. Calculation: $20,000 × 0.025 = $500
  4. Final Zakat amount: $500

This example shows that with $20,000 in savings, the Zakat obligation would be $500.

Frequently Asked Questions

How often is Zakat paid?

Zakat is typically paid annually, during the month of Ramadan or the month of Zakat (Dhu al-Hijjah).

Who receives Zakat payments?

Zakat payments are distributed to eligible recipients including the poor, needy, and those in debt. The distribution is typically done through registered charities.

Is Zakat tax deductible in the USA?

Zakat payments are not tax-deductible as a charitable donation for federal tax purposes in the USA. However, they may be deductible in some states.

What if my savings are below the Nisab threshold?

If your total savings and assets are below the Nisab threshold of $1,335 in 2018, you are not required to pay Zakat.