Zakat Calculator Usa 2021
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Reviewed by Calculator Editorial Team
Zakat is an obligatory charity prescribed by Islam for Muslims who meet certain financial and personal requirements. In the USA, calculating Zakat involves determining your total savings and wealth, then giving a portion of that to those in need. This calculator helps you determine your Zakat obligation for 2021.
What is Zakat?
Zakat is one of the Five Pillars of Islam, alongside Shahada (faith declaration), Salah (prayer), Sawm (fasting), and Hajj (pilgrimage). It is an act of worship that requires Muslims to give a portion of their savings to those in need.
The word "Zakat" comes from the Arabic root "zakawiya," which means "to purify" or "to grow." The purpose of Zakat is to purify wealth, redistribute resources, and promote social justice.
Zakat is not the same as charity or alms. It is a specific obligation for Muslims who meet the financial and personal requirements. Non-Muslims are not required to pay Zakat.
Zakat Requirements
To be eligible for Zakat, you must meet the following requirements:
- Muslim: You must be a Muslim who has reached the age of puberty and is of sound mind.
- Nisab: Your total savings and wealth must be equal to or exceed the Nisab amount. The Nisab is the minimum amount of savings required to be eligible for Zakat.
- Ownership: You must own the savings and wealth for a period of at least one lunar year (approximately 354 days).
- Intent: The savings and wealth must be held with the intention of keeping them for a period of time, not with the intention of spending them.
The Nisab amount varies depending on the value of gold and silver. For 2021, the Nisab amount in the USA was approximately $1,311.50 for gold and $153.50 for silver.
How to Calculate Zakat
Calculating Zakat involves determining your total savings and wealth, then giving a portion of that to those in need. The standard rate of Zakat is 2.5% of your total savings and wealth.
The calculation formula is:
Where:
- Total Savings and Wealth: The total amount of your savings, investments, and other assets.
- Debts: Any outstanding debts or liabilities that you owe to others.
Here's a step-by-step guide to calculating your Zakat:
- Calculate your total savings and wealth.
- Subtract any outstanding debts or liabilities.
- Multiply the result by 2.5% to determine your Zakat obligation.
- Give the calculated amount to those in need.
Zakat is calculated annually, and the amount is typically given to eligible recipients such as the poor, the needy, and those in debt.
Zakat Examples
Here are some examples of how to calculate Zakat:
| Total Savings and Wealth | Debts | Zakat Calculation |
|---|---|---|
| $10,000 | $0 | $250 |
| $50,000 | $5,000 | $1,125 |
| $100,000 | $10,000 | $2,250 |
In the first example, a Muslim with $10,000 in savings and no debts would owe $250 in Zakat. In the second example, a Muslim with $50,000 in savings and $5,000 in debts would owe $1,125 in Zakat. In the third example, a Muslim with $100,000 in savings and $10,000 in debts would owe $2,250 in Zakat.
Zakat FAQ
Who is required to pay Zakat?
Zakat is required for Muslims who meet the financial and personal requirements, including being of sound mind, having reached the age of puberty, and having savings and wealth equal to or exceeding the Nisab amount.
What is the Nisab amount for Zakat in 2021?
The Nisab amount for Zakat in 2021 was approximately $1,311.50 for gold and $153.50 for silver. Your total savings and wealth must be equal to or exceed the Nisab amount to be eligible for Zakat.
How is Zakat calculated?
Zakat is calculated by multiplying your total savings and wealth (minus any outstanding debts) by 2.5%. The standard rate of Zakat is 2.5% of your total savings and wealth.
Who receives Zakat?
Zakat is given to eligible recipients such as the poor, the needy, and those in debt. The distribution of Zakat is governed by Islamic law and should be done in a way that benefits those in need.