One Ummah News - 31 Dec 2025
The Prophet (ﷺ) sent Mu`adh to Yemen and said, "Invite the people to testify that none has the right to be worshipped but Allah and I am Allah's Messenger (ﷺ), and if they obey you to do so, then teach them that Allah has enjoined on them five prayers in every day and night (in twenty-four hours), and if they obey you to do so, then teach them that Allah has made it obligatory for them to pay the Zakat from their property and it is to be taken from the wealthy among them and given to the poor."
Zakat means “purification”, and is an obligatory annual charity in Islam, requiring eligible Muslims to donate 2.5% of their qualifying wealth. This act purifies wealth, fosters compassion, and supports the less fortunate. In 2026, accurate Zakat calculation is crucial due to economic fluctuations, ensuring you meet your religious obligations and maximise the impact on those in need. The obligation of Zakat is triggered when your wealth exceeds the Nisab (minimum threshold) for a Hawl (full lunar year of possession, 354 days). Modern Zakat calculators simplify this process, especially with fluctuating gold and silver prices in 2026. If you’d like to donate towards this appeal, you can do so here at our Zakat donation page.
How do I calculate Zakat in the UK in 2026? In a nutshell, calculating Zakat involves summing up your eligible assets, this includes cash, savings, investments, and other eligible assets, subtract debts; and if the remaining net wealth exceeds the Nisab threshold for one lunar year, you pay 2.5% of that net amount.
Nisab values fluctuate with gold/silver prices, and if you want to give your Zakat in Ramadan, the Nisab values should be checked closer to Ramadan 2026. This guidance is based on the opinions of recognised UK scholars and bodies, including NZF, local scholars, and Fiqh councils.
What Is Nisab?
This is the minimum amount or threshold of your wealth that determines your eligibility to pay Zakat. Classically, the Nisab was known as the amount that leaves one with sufficient independence from need. As of late December 2025, the equivalent of 87.48 grams of gold, £8,436.13, is the current gold Nisab standard. The equivalent of 612.36 grams of silver, £942.43, is the current silver Nisab standard.
Please note that this is only a guide, and when you are ready to calculate your Zakat for 2026, you should check the Nisab values at that time.
Gold vs Silver Nisab: Which Should I Use?
The majority of scholars will encourage using the silver Nisab threshold over the gold Nisab threshold, so that more Muslims will be eligible to pay Zakat, and hence more beneficiaries will receive Zakat.
Traditionally the values of silver and gold were closer together, so it didn’t make a big difference when calculating and giving Zakat using either standard.
Positives of using gold Nisab
Negatives of using the Gold Nisab
Positives of using silver Nisab
Negatives of using silver Nisab
If unsure which Nisab standard to use, gold or silver, it is best to consult a scholar whom you trust who will advise you on which standard to use.
Checking Today’s Nisab Value
Nisab is calculated using current market prices in 2026 for both gold and silver. You can either use trusted, well-known Islamic institutions like NZF or find the current prices yourself from traders or companies that deal in the buying and selling of silver and gold.
Suggest linking to a live gold/silver price widget or an internal “Nisab Update” page.
Step-by-Step Zakat Calculation for 2026 (pre-Ramadan or post-Ramadan)
1. Zakatable Assets
The following are assets that are Zakatable:
Working out how much you have from each of the areas above is the first step to calculating your Zakat for 2026.
2. Deductible Liabilities
Next, you have to work out your liabilities and deduct them from the total you came to for your Zakatable assets.
3. Simple Formula
A simple formula to use is the following:
(Total Zakatable Assets - Immediate Liabilities) x 2.5% = Zakat due
4. Points to Note
5. Worked Examples
Here are 2 examples of Zakat calculations:
1. Single Professional
Abu Bakr is a single professional who earns a salary working full-time. He has savings, investments, and a short-term debt.
His Zakatable Assets are:
Current bank account: £4,500
Savings bank account: £6,000
Cash at home: £500
Investment account (liquid, halal): £3,000
Total Assets: £4,500 + £6,000 + £500 + £3,000 = £14,000
His Deductible Liabilities are:
Credit card balance (due soon): £1,800
Personal loan instalment due within the year: £1,200
Total Liabilities: £1,800 + £1,200 = £3,000
Net Zakatable Wealth: £14,000 − £3,000 = £11,000
Nisab Check: Gold nisab ≈ £8,500
£11,000 is greater than the Nisab, so Zakat is due on the entirety of the Net Zakatable Wealth and not just the wealth above the Nisab amount.
Zakat Calculation: 2.5% × £11,000 = £275
Zakat owed: £275
2. Small Business Owner
Umar owns a small retail shop and holds stock, receivables, and cash. He also has business payables.
His Zakatable Assets are:
Business bank account: £5,000
Cash register: £1,000
Trade inventory (market value): £18,000
Accounts receivable (expected to be paid): £4,000
Total Assets: £5,000 + £1,000 + £18,000 + £4,000 = £28,000
His Deductible Liabilities are:
Supplier invoices due: £6,000
Short-term business loan instalment: £2,000
Total Liabilities: £6,000 + £2,000 = £8,000
Net Zakatable Wealth
£28,000 − £8,000 = £20,000
Nisab Check
£20,000 > nisab → Zakat is due
Zakat Calculation: 2.5% × £20,000 = £500
Zakat owed: £500
Crypto assets are Zakatable if held as an investment or store of value, not for personal use. These are treated like cash or trade assets. The Zakatable value of your crypto assets is the market value on your Zakat due date. If used for active trading, it holds the same ruling that the full value is Zakatable. If crypto is genuinely inaccessible (lost keys, frozen), Zakat is delayed until access returns.
Stocks and Shares ISAs
There are two approaches for stocks and shares ISAs:
1. Simpler approach (most common)
2. Purist approach (less common)
Most individuals use approach #1 for ease and certainty.
Equity in Trading Accounts
Examples of these are stocks, ETFs, Shares and cash balance. The cash balance is fully Zakatable. Shares held for resale are Zakatable at full market value. With long-term investments, either the full value (simpler) is used, or the Zakatable-assets-only method at 2.5% Zakat (which is naturally more complex).
Cash apps/e-wallet balances (PayPal, Wise, Revolut): Zakatable like cash
Savings bonds/Sukuk funds: Zakatable (cash-like or underlying assets)
ETFs and mutual funds: Zakatable (full value or underlying assets method)
Crowdfunded investments (P2P, equity platforms): Zakatable if recoverable
Stablecoins: Zakatable like cash
Pension pots (DC plans):
Online businesses / digital products:
Debts and Rights
After thanking Allah, we thank our donors. Their Zakat donations have benefitted tens of thousands every year and are used to help those in the most vulnerable conditions, such as malnourished children and families living in conflict.
Over the past year or so, generous Zakat donations allowed us to provide cash aid to almost 16,000 Zakat-eligible beneficiaries. We have also assisted over 2,000 Zakat-eligible Muslims in emergency-stricken and rural areas with Zakat packs and Zakat ul-Fitr donations, including hot meals. The Zakat we received was distributed in many of the 20 countries we work in.
Zakat FAQ
1. Do I have to pay Zakat on my house?
No, your primary residence is generally not Zakatable because it’s for personal use and sustenance.
However, if you own property for investment or resale (e.g., a rental house not used by you), then its market value (minus any liability) is Zakatable.
(The general rule is that personal items for everyday use are excluded; investment property is included.)
2. Can I pay Zakat in installments?
Yes, it is permissible to pay Zakat in instalments if paying the full amount at once causes hardship.
The obligation is to pay the full due annually, but splitting it up throughout the year is acceptable as long as the total is paid and the sincerity of intention is preserved.
3. Is Zakat tax-deductible in the UK?
Zakat itself is not automatically tax-deductible like a business expense or personal deduction. However, if you donate your Zakat to a registered UK charity and complete a Gift Aid declaration, the charity can claim back basic-rate tax (adds 25% to the donation) from HMRC.
As an individual, you won’t directly deduct the Zakat you pay from your income for tax purposes, but Gift Aid gives an indirect tax benefit if conditions are met (that you give your Zakat to a registered charity, and that you’re a taxpayer).
Donate your Zakat
Now that you have understood what Zakat is, what the Nisab is, the rules for calculating Zakat, what assets are Zakatable, what assets are liabilities and deducted, and used the step-by-step Zakat calculation information, you are ready to pay your Zakat before or after Ramadan 2026!
You can donate your Zakat at the following link: https://oneummah.org.uk/appeals/zakat-donations