Zakat is obligatory on every Muslim who meets ALL of the following conditions:

• Muslim — Zakat is only obligatory on Muslims
• Sane adult — Has reached puberty (Bulugh)
• Free — Not enslaved (historically relevant criterion)
• Nisab met — Possesses wealth equal to or above the Nisab threshold
• Hawl completed — The wealth has been owned for one full lunar year (354 days)
• Full ownership — Has complete ownership and control of the wealth

Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. There are two standards:

• Gold Nisab: 87.48 grams of gold (equivalent in cash)
• Silver Nisab: 612.36 grams of silver (equivalent in cash)

The silver Nisab is typically lower, making Zakat obligatory on more people. Scholars differ on which to use — many contemporary scholars recommend the silver standard to ensure more people fulfil their obligation. The gold standard is also widely used.

If your total Zakatable wealth meets or exceeds the Nisab and has been held for one lunar year (Hawl), Zakat is due.

Hawl refers to the passage of one complete Islamic lunar year (approximately 354 days) during which the wealth remains at or above the Nisab threshold. If wealth dips below Nisab during the year, the Hawl resets from the point it reaches Nisab again.

A practical approach: choose a fixed Islamic date each year (such as the beginning of Ramadan or Muharram) to calculate and pay your Zakat. This simplifies tracking considerably.

Zakatable (included):

• Cash, savings, and bank account balances
• Gold and silver (jewellery, bars, coins) at current market value
• Business inventory (goods for sale)
• Shares and stocks (market value of zakatable portion)
• Money owed to you that you expect to receive
• Rental income saved (above living expenses)
• Agricultural produce (separate Zakat Al-Zuru rules apply)

Not Zakatable (excluded):

• Primary residence and personal-use property
• Personal vehicles, clothing, furniture, electronics for personal use
• Tools and equipment used in your livelihood
• Outstanding debts you owe to others (deducted from assets)
• Pension funds (some scholars exempt until received)

• Al-Fuqara (الفقراء) — The Poor: Those with little or no income, unable to meet basic needs
• Al-Masakin (المساكين) — The Needy: Those who have some income but it is insufficient for necessities
• Al-Amileen (العاملين) — Zakat Collectors: Those employed to collect and administer Zakat
• Al-Muallafat Qulubuhum — Those Whose Hearts Are to Be Reconciled: New Muslims or those close to Islam
• Ar-Riqab (الرقاب) — Freeing Slaves: Historically to free enslaved people; today some scholars apply to oppressed people
• Al-Gharimeen (الغارمين) — Debtors: Those overwhelmed by debt with no means to repay
• Fi Sabilillah (في سبيل الله) — In the Cause of Allah: Broadly interpreted to include Islamic education, dawah, and community welfare
• Ibn As-Sabil (ابن السبيل) — The Stranded Traveller: Those far from home with insufficient funds to return

There is scholarly difference of opinion (ikhtilaf) on gold/silver jewellery used for personal adornment:

• Hanafi school: Zakat is due on all gold and silver, including worn jewellery, at 2.5% of the current market value
• Maliki, Shafi'i, Hanbali schools: Jewellery worn regularly is exempt; only jewellery stored as wealth is Zakatable

Out of precaution (ihtiyat), many Muslims follow the Hanafi position and include worn jewellery in their Zakat calculation. Consult your local scholar if you are uncertain.

For stocks and shares held as an investment (not for active trading), the predominant contemporary view is:

• Zakat is due on the Zakatable assets of the company proportional to your shareholding, if you can access the company's balance sheet
• A simplified approach: pay 2.5% on the current market value of shares held for one Hawl year
• For actively traded stocks (business inventory analogy): pay Zakat on the full market value
• For index funds and ETFs: apply the simplified market value approach unless detailed fund reports are available

For pension funds, most scholars agree Zakat is only due upon receiving the funds, not on the locked-in amount.

When to pay: Anytime during the year once Hawl is complete. Many Muslims pay in Ramadan for increased reward, but it is not restricted to Ramadan.

How to pay: Directly to eligible recipients, through trusted Islamic charities, or via local mosque Zakat committees.

Trusted organizations (Canada):

• Islamic Relief Canada — islamicreliefcanada.org
• Penny Appeal Canada — pennyappealcanada.ca
• Human Concern International — hci.ca
• Zakat Foundation of America (also serves Canada) — zakat.org
• Local mosques and Islamic centres

Niyyah (intention): Making the intention that this payment is Zakat is required before or at the time of giving.