Zakat Harta in Malaysia: Types, Nisab & How to Calculate (2026)
A complete guide to zakat harta (wealth zakat) in Malaysia — types of zakatable wealth, how nisab is determined, and calculation methods for savings, gold, investments, and business assets.
Zakat is the third pillar of Islam — an annual obligation for Muslims who possess wealth above the nisab (minimum threshold) for a full lunar year. In Malaysia, zakat is administered by state Islamic religious authorities and carries a unique dual benefit: fulfilling a religious duty and earning a ringgit-for-ringgit income tax rebate. This guide explains the types of zakat harta, how nisab is determined in 2026, and how to calculate your obligation across different asset classes.
Published 2026-02-05 · 9 min read · Islamic Finance
Who Must Pay Zakat Harta?
To be obligated to pay zakat harta, you must be: (1) Muslim, (2) fully sane (aqil), (3) free from slavery, (4) in possession of wealth above the nisab threshold, and (5) have held that wealth for a complete hawl — one full lunar year (approximately 354 days).
In Malaysia, you pay zakat to the zakat authority in your state of residence. For example, workers in Kuala Lumpur pay to MAIWP regardless of their home state.
Types of Zakat Harta in Malaysia
- Zakat Fitrah — Personal zakat paid during Ramadan. Fixed at the value of staple food (~RM7–RM22 per person, set by state). Not the same as zakat harta.
- Zakat Pendapatan (Income Zakat) — 2.5% of net monthly employment income above the nisab. Some states allow this via monthly salary deduction.
- Zakat Simpanan (Savings Zakat) — 2.5% of cash and bank savings held above the nisab for a full hawl.
- Zakat Emas dan Perak (Gold & Silver) — 2.5% of the current market value of gold and silver holdings above the nisab weight.
- Zakat Pelaburan (Investment Zakat) — 2.5% of the current market value of unit trusts, shares, ASB, and similar investments.
- Zakat Perniagaan (Business Zakat) — 2.5% of net current business assets (simplified method), or a full accounting-based calculation for larger companies.
Understanding Nisab
Nisab is the minimum wealth threshold that triggers zakat. Two traditional nisab values exist: 85 grams of pure gold or 595 grams of silver. Most Malaysian zakat authorities use the gold nisab for zakat harta.
| Nisab Basis | Weight | Approx. 2026 Value (RM) |
|---|---|---|
| Gold (85 grams) | 85g pure gold | ~RM24,650 – RM26,350 |
| Silver (595 grams) | 595g silver | ~RM2,800 – RM3,200 |
Always check your state's zakat authority website for the current nisab — it changes with gold and silver prices. The figures above are 2026 approximations.
Calculating Zakat on Savings
Zakat on savings applies to cash in hand, current accounts, savings accounts, and fixed deposits.
Method: Identify your minimum balance held continuously throughout the hawl. If this minimum exceeds the nisab, multiply it by 2.5%.
Example: Minimum balance of RM50,000 held for a full hawl. Nisab = RM25,000. Zakat = RM50,000 × 2.5% = RM1,250.
If your balance dropped below the nisab at any point during the year, the hawl resets from when it returns above nisab.
Calculating Zakat on Gold and Silver
Physical gold and silver — bullion, coins, bars, and jewellery — are zakatable at 2.5% of current market value, provided the total weight exceeds the nisab.
There is scholarly disagreement on gold jewellery worn regularly for personal use. Malaysia's major zakat authorities generally include jewellery above the nisab weight, but practice varies by state.
Example: You own 100 grams of 24-karat gold at RM300/gram. Market value = RM30,000. Zakat = RM30,000 × 2.5% = RM750.
Calculating Zakat on Investments
Shares, unit trusts, ASB/ASN, and similar instruments are zakatable. Most Malaysian authorities accept the market value method: 2.5% of current market value above the nisab, held for a full hawl.
Example: Unit trust portfolio worth RM80,000 at year-end. Zakat = RM80,000 × 2.5% = RM2,000.
For EPF savings, some states require 2.5% on the hawl balance above nisab when the annual dividend is credited. Check your state's ruling — practice is not uniform across Malaysia.
Allowable Deductions
Legitimate liabilities reduce your zakatable wealth before applying the 2.5% rate:
- Short-term personal debts due within the year — Loans, instalments, credit card balances due and payable within the current hawl.
- Business liabilities (for business zakat) — Trade payables, short-term bank loans, and other current liabilities.
- Basic personal living expenses — An estimated annual amount for yourself and dependants — methodology varies by state.
Zakat as an Income Tax Rebate
Zakat paid to an authorised Malaysian state zakat authority is a ringgit-for-ringgit income tax rebate — not merely a deduction. If you pay RM2,000 in zakat and owe RM3,000 in income tax, your tax payable becomes RM1,000.
This is more valuable than a tax relief, which only reduces chargeable income at your marginal rate. Keep your zakat payment receipt for your annual e-Filing return and declare it under the 'Rebate' section.
Zakat is the only expense in Malaysia's tax system that gives a direct ringgit-for-ringgit rebate against income tax payable.