Zakat Calculator Usa 2019
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Reviewed by Calculator Editorial Team
Zakat is an obligatory charity in Islam that must be paid by eligible Muslims who meet certain financial thresholds. In the USA, the calculation of zakat follows Islamic financial principles, and this calculator helps you determine your zakat obligation for 2019.
How to Calculate Zakat
The basic formula for calculating zakat is:
Where:
- Total Savings - The total amount of money you have, including cash, investments, and other financial assets.
- Debts - Any outstanding debts or liabilities that you owe to others.
- 2.5% - The standard zakat rate for savings and investments.
For 2019, the zakat calculation follows these key principles:
- Only Muslims who meet the nisab threshold (minimum amount of savings) are required to pay zakat.
- The nisab for 2019 was approximately $1,200 USD in gold or equivalent in cash.
- Zakat must be paid to qualified charities or to those in need.
- The zakat amount must be paid before the end of the zakat year.
Note: The zakat calculation can vary based on local interpretations and the specific financial situation of the individual. This calculator provides a general estimate based on standard Islamic financial principles.
Zakat Rules in the USA
In the USA, zakat is calculated based on the same Islamic principles as in other countries. However, there are some specific considerations for American Muslims:
Nisab Threshold
The nisab is the minimum amount of savings required to be eligible for zakat. For 2019, the nisab was approximately $1,200 USD in gold or equivalent in cash.
Zakat Year
The zakat year typically follows the lunar calendar, but in the USA, it is often aligned with the Gregorian calendar for practical purposes. For 2019, the zakat year would have been from January 1, 2019, to December 31, 2019.
Zakat Payment
Zakat must be paid to qualified charities or to those in need. In the USA, there are many registered Islamic charities that accept zakat payments.
Investments and Businesses
Zakat is also required on investments and business profits, with a higher rate of 20%. The calculation for business zakat is more complex and may require professional advice.
Zakat Calculation Example
Let's look at an example to illustrate how zakat is calculated. Suppose you have the following financial situation in 2019:
- Cash savings: $5,000
- Investments: $10,000
- Debts: $2,000
First, calculate your total savings:
Next, subtract any debts:
Finally, calculate the zakat amount:
Therefore, you would owe $325 in zakat for 2019 based on this example.
Zakat FAQ
- What is the nisab for zakat in 2019?
- The nisab for 2019 was approximately $1,200 USD in gold or equivalent in cash. If your savings are below this amount, you are not required to pay zakat.
- How often is zakat paid?
- Zakat is typically paid annually, at the end of the zakat year. The zakat year follows the lunar calendar, but in the USA, it is often aligned with the Gregorian calendar.
- Can zakat be paid to any charity?
- Zakat must be paid to qualified charities or to those in need. In the USA, there are many registered Islamic charities that accept zakat payments.
- Is zakat required on investments?
- Yes, zakat is required on investments and business profits, with a higher rate of 20%. The calculation for business zakat is more complex and may require professional advice.
- What happens if I don't pay my zakat?
- If you don't pay your zakat, you are considered to have committed a sin in Islam. It is important to fulfill your zakat obligation to maintain your spiritual well-being.