Nisab is the minimum threshold of wealth above which zakat becomes obligatory. It is most commonly tied to the market value of 85 grams of pure gold. Malaysian state zakat authorities publish the prevailing nisab each year.

Is my house or car included in zakatable assets?

No. Personal-use assets such as your primary residence, daily-use vehicle, household furnishings, and personal jewellery within customary limits are excluded. A second house held for rental income is treated differently — the rental cash flow is zakatable, but the property itself usually is not.

Once your zakatable wealth has remained above the nisab for one full Islamic (hijri) year (the hawl). Most muzakki choose a fixed anniversary date — for example, the start of Ramadan or a calendar date — and reconcile annually.

Can I pay zakat to multiple recipients?

Yes — the Qur'an specifies eight asnaf (recipient) categories. In Malaysia, most zakat is paid through state authorities (PPZ, LZS-MAIWP, MAIWP, MUIS-equivalents) which distribute on your behalf to all eight asnaf in the prescribed proportions.

Is zakat deductible from income tax?

Yes — zakat paid to a recognised institution is a rebate against income tax payable in Malaysia, not just a relief. The rebate equals the zakat paid, capped at your tax liability for the year, so it can entirely offset your tax bill.

How is EPF zakat handled?

Most state authorities require zakat on EPF only at the point of withdrawal — either as a one-off 2.5% on the lump sum (preferred by many councils) or annually thereafter on the remaining balance. Some muzakki pay annually on EPF balances even before withdrawal; check with your state authority.

What if I have shared assets with a spouse?

Each spouse computes zakat on their own share of jointly-held assets. Joint bank accounts are typically split 50/50 unless documented otherwise; pre-marital assets remain individually owned for zakat purposes.

Zakat calculator

Estimate your annual zakat across all asset classes.

Calculate your annual zakat harta (wealth zakat) across cash, savings, gold, silver, investment portfolios, and business assets. The calculator applies the standard 2.5% rate against your net zakatable wealth and compares the total against the prevailing nisab so you instantly see whether zakat is due.

How zakat is calculated

Zakat al-mal (wealth zakat) is obligatory on wealth that has been held for at least one full Islamic (lunar) year — called the hawl — and that exceeds the nisab threshold. The rate that applies to most asset classes is 2.5%.

The nisab is typically pegged to the market value of 85 grams of pure gold (and, alternatively, 595 grams of silver — whichever is lower is sometimes used to protect lower-income Muslims). Malaysian state zakat authorities such as PPZ, LZS-MAIWP, MAIWP, and others publish the current nisab in ringgit each year, updated as gold prices move.

From the total of your zakatable assets, you may deduct allowable liabilities. These are typically short-term debts due within the hawl: an outstanding credit-card balance, a personal loan instalment, family maintenance arrears, and similar. Long-term liabilities such as a 20-year housing loan are usually deducted only by the instalment due within the year, not the full principal.

Once the net zakatable wealth is computed, compare it against the nisab. If it is below the nisab, no zakat is due for that hawl. If it equals or exceeds the nisab, the entire net amount (not just the portion above the threshold) is multiplied by 2.5%.

Some specific asset classes have their own rules. Zakat on agricultural produce uses 5% or 10% depending on irrigation. Zakat on business inventory follows the standard 2.5% but is computed on net working capital. EPF balances become zakatable upon withdrawal, with state authorities differing slightly on the exact mechanism (paying once upfront vs. annually after withdrawal).

Zakat formula

Zakat due = 2.5% × (Zakatable assets − Allowable liabilities), if (Zakatable assets − Allowable liabilities) ≥ Nisab.

Zakatable assets include: cash on hand, current and savings account balances, fixed deposits, gold and silver above personal-use thresholds, business inventory and receivables, investment-grade unit trusts, shares held for trading, ASB / ASM units, and similar.

Excluded (not zakatable): primary residence, the vehicle you use daily, personal jewellery within customary limits (4-9 mayam in many Malaysian states), tools of your trade, and household furnishings.

Net wealth that falls below nisab is exempt — even by a single ringgit. Wealth slightly above nisab is fully zakatable.

Zakat rates by asset class

Asset class	Rate	Notes
Cash, savings, fixed deposit	2.5%	On the lowest balance held for one full hawl, or the balance at year-end (state-dependent).
Gold (investment)	2.5%	On value once total weight exceeds the personal-use threshold.
Silver	2.5%	Same principle as gold; nisab is 595g of silver.
Business inventory & receivables	2.5%	Net of trade payables. Computed at year-end stocktake.
ASB / ASM / unit trusts	2.5%	On market value; some state councils accept a simplified method.
Agricultural produce	5% – 10%	10% rain-fed; 5% irrigated. Only certain staples (e.g. rice).
Livestock	Tiered	Camel, cattle, sheep — fixed-quantity rules from classical fiqh.
EPF / pension lump sums	2.5%	Typically zakatable upon withdrawal; rules vary by state.

Always confirm with your state zakat authority for the exact computation and nisab in any given year.

Worked examples

Example 1 — Mid-career professional

Cash & savings: RM 80,000
ASB / unit trusts: RM 30,000
Gold (investment): RM 10,000
Short-term debts: RM 5,000
Nisab (assumed): RM 24,000

Result: Net zakatable wealth = RM 115,000, which is above the nisab. Zakat due = 2.5% × RM 115,000 = RM 2,875.

Example 2 — Young saver below nisab

Cash & savings: RM 18,000
Gold: RM 2,000
Nisab (assumed): RM 24,000

Result: Net wealth = RM 20,000, below the RM 24,000 nisab. No zakat is due this hawl; the wealth is tracked again next year.

Example 3 — Business owner

Inventory at year-end: RM 250,000
Trade receivables: RM 40,000
Trade payables: RM 60,000
Cash (business): RM 30,000

Result: Net zakatable working capital = 250,000 + 40,000 + 30,000 − 60,000 = RM 260,000. Zakat = 2.5% × RM 260,000 = RM 6,500.

Frequently asked questions

What is nisab?: Nisab is the minimum threshold of wealth above which zakat becomes obligatory. It is most commonly tied to the market value of 85 grams of pure gold. Malaysian state zakat authorities publish the prevailing nisab each year.
Is my house or car included in zakatable assets?: No. Personal-use assets such as your primary residence, daily-use vehicle, household furnishings, and personal jewellery within customary limits are excluded. A second house held for rental income is treated differently — the rental cash flow is zakatable, but the property itself usually is not.
When do I pay zakat?: Once your zakatable wealth has remained above the nisab for one full Islamic (hijri) year (the hawl). Most muzakki choose a fixed anniversary date — for example, the start of Ramadan or a calendar date — and reconcile annually.
Can I pay zakat to multiple recipients?: Yes — the Qur'an specifies eight asnaf (recipient) categories. In Malaysia, most zakat is paid through state authorities (PPZ, LZS-MAIWP, MAIWP, MUIS-equivalents) which distribute on your behalf to all eight asnaf in the prescribed proportions.
Is zakat deductible from income tax?: Yes — zakat paid to a recognised institution is a rebate against income tax payable in Malaysia, not just a relief. The rebate equals the zakat paid, capped at your tax liability for the year, so it can entirely offset your tax bill.
How is EPF zakat handled?: Most state authorities require zakat on EPF only at the point of withdrawal — either as a one-off 2.5% on the lump sum (preferred by many councils) or annually thereafter on the remaining balance. Some muzakki pay annually on EPF balances even before withdrawal; check with your state authority.
What if I have shared assets with a spouse?: Each spouse computes zakat on their own share of jointly-held assets. Joint bank accounts are typically split 50/50 unless documented otherwise; pre-marital assets remain individually owned for zakat purposes.