What Is Nisab? The Zakat Threshold Explained

Nisab is the minimum threshold of wealth that makes Zakat al-Mal obligatory. A Muslim whose total Zakat-applicable wealth falls below the nisab owes no Zakat for that year. Only when wealth meets or exceeds the nisab — and has been held at that level for a full lunar year (the hawl) — does the 2.5% obligation apply.

The Two Nisab Thresholds

Islamic scholarship sets nisab at the value of either 85 grams of gold or 595 grams of silver. The Prophet (PBUH) established both as reference points for Zakat — gold and silver were the monetary standards of the time. In the modern era, the monetary equivalent of each differs significantly because the relative price of gold and silver has changed dramatically.

At current prices, 85 grams of gold is worth considerably more than 595 grams of silver. This means the gold nisab sets a higher bar for Zakat to become obligatory, and the silver nisab a lower one.

Which Nisab Applies?

Scholars differ on which nisab to use when the two produce different results. The Hanafi, Maliki, Shafiʼi, and Hanbali schools each held positions rooted in an era when gold and silver tracked more closely in relative value.

Many contemporary scholars, including the late Sheikh Yusuf al-Qaradawi and various Islamic finance bodies, recommend using the silver nisab. Their reasoning: the silver nisab is lower, which means more Muslims fulfil their Zakat obligation, more wealth reaches those in need, and the protective purpose of the nisab (ensuring only those with meaningful wealth above basic needs pay) is adequately served.

Other scholars recommend the gold nisab, reasoning that it better represents the original intent of exempting those with modest means.

This is a genuine scholarly difference. Following the position of your madhab or a qualified scholar you trust is advisable. Using either threshold is a valid position backed by scholarship.

The Hawl: The Lunar Year Requirement

Nisab alone does not trigger Zakat. The wealth must have been held at or above the nisab for a complete lunar year — the hawl. If wealth crosses the nisab threshold today, Zakat will not be due on it until the same date next lunar year, provided it has remained above the threshold throughout. Scholars differ on what happens if wealth briefly dips below the nisab during the year. The Hanafi school holds that the hawl resets; other schools hold different positions. A qualified scholar should be consulted for specific circumstances.

Checking the Nisab Value

Because the nisab is pegged to the price of gold or silver, its monetary equivalent changes over time. It is calculated at the time of Zakat payment using that day’s market price. Islamic finance resources and Zakat organisations publish updated nisab values regularly.

Sources

• Hadith: Abu Dawud, 1572 — the Prophet (PBUH) on nisab for silver
• Al-Qaradawi, Fiqh al-Zakat — contemporary scholars on gold vs silver nisab
• Imam al-Nawawi, al-Majmuʹ — Shafiʼi school on nisab conditions
• Ibn Qudama, al-Mughni — Hanbali school on nisab and hawl

Giving Your Zakat through Human Appeal

All of Human Appeal USA’s current programs are Zakat-applicable, covering the primary Quranic categories of Al-Fuqara (the poor) and Al-Masakin (the needy). Zakat donations are treated as restricted funds, held separately in Human Appeal’s accounts, and allocated only to Zakat-eligible projects and individuals. Human Appeal’s Zakat Policy has been reviewed by scholars and is available to read in full.

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Human Appeal’s current programs are Zakat-applicable, distributed in accordance with our scholar-reviewed Zakat Policy.

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