This article is general educational information, not a religious ruling (fatwa). For your specific situation, consult a qualified scholar (mufti). The monetary value of nisab changes daily with gold and silver prices, so always check the current rate when you calculate.
Every year, as Ramadan approaches, millions of Pakistani families sit down to work out their zakat — and for most, gold is the part that causes the most uncertainty. How much is owed? Does jewellery count? What if you only own a few tolas? This guide walks through exactly how zakat on gold works in Pakistan, with a worked example you can follow using today's live rate.
What is zakat on gold?
Zakat is one of the five pillars of Islam — an obligatory annual payment of 2.5% on qualifying wealth, given to those eligible to receive it. It isn't a tax on income; it's a yearly levy on accumulated wealth that has been held for a full lunar year.
Gold is one of the classic forms of zakatable wealth. If your gold holdings meet the minimum threshold (the nisab) and you've owned them for one lunar year, zakat becomes due on their current market value at the rate of 2.5%.
Two conditions matter here, and both must be met:
- The nisab — your holdings must reach a minimum quantity (explained below).
- The hawl — you must have owned the wealth for one full lunar (hijri) year. The lunar year is about 11 days shorter than the solar year, which is part of why zakat dates shift earlier each year.
The nisab: the minimum threshold for gold
The nisab is the line below which no zakat is due. For precious metals there are two reference thresholds, set in weight:
- Gold nisab: 87.48 grams — equal to 7.5 tola.
- Silver nisab: 612.36 grams — equal to 52.5 tola.
If gold is the only zakatable asset you hold, the gold nisab applies: you owe zakat only if you own at least 7.5 tola of gold. Below that, no zakat is due on the gold.
The gold-vs-silver nisab question
Here's where many people get confused. If you hold a mix of assets — for example, some gold plus cash savings, or some gold plus business goods — many scholars advise using the silver nisab to decide whether zakat is due, because it's the lower threshold and therefore captures more wealth for the benefit of zakat recipients.
In practice, this means: if you own a small amount of gold (under 7.5 tola) but you also have cash savings, your combined wealth may well cross the silver nisab, making zakat due on the lot. This is the considered position of many scholars, though practice varies. If your situation involves mixed assets, this is exactly the kind of question worth putting to a trusted scholar.
Does jewellery count?
This is the most debated point, and it's worth being honest that scholars genuinely differ.
The Hanafi position — which predominates in Pakistan — generally holds that gold jewellery is subject to zakat, whether it's worn regularly or kept in storage. Since most Pakistanis follow the Hanafi school, the common practice in Pakistan is to include a woman's gold jewellery when calculating zakat.
Some other schools of thought take the view that jewellery in regular personal use is exempt. Both positions are held by recognised scholars.
The practical takeaway: if you follow the Hanafi school (as most in Pakistan do), include your jewellery. If you follow another school or are unsure, follow your own madhhab or ask a scholar you trust. Don't simply pick whichever ruling is cheaper — follow your school sincerely.
How to calculate zakat on gold: step by step
The formula itself is simple:
Zakat = total current market value of your gold × 2.5% (when the nisab is met and the gold has been held for one lunar year)
Here's the step-by-step method:
Step 1 — Add up your gold. Total the weight of all the gold you own, in tolas or grams. Include jewellery (per the Hanafi view), coins, and bars.
Step 2 — Separate by karat. Gold of different purities is worth different amounts, so value each separately. Your 22K jewellery is valued at the 22K rate; your 24K bars or coins at the 24K rate.
Step 3 — Look up today's rate. Use the current live gold rate — not what you paid when you bought it. Zakat is calculated on present market value. (You can value your holdings quickly using the live rate and calculator on this site.)
Step 4 — Calculate the total value. Multiply the weight of each portion by its current per-tola (or per-gram) rate, then add the portions together.
Step 5 — Check the nisab. Confirm your holdings meet the threshold (the gold nisab of 7.5 tola if gold is your only asset, or the silver nisab if you hold mixed assets).
Step 6 — Apply 2.5%. Multiply the total value by 0.025 (2.5%). That's your zakat due.
A worked example
Suppose you own 10 tola of 22K gold jewellery, and gold is your main zakatable asset.
- Your holding (10 tola) is above the 7.5-tola gold nisab, so zakat is due.
- Look up today's 22K rate per tola — let's call it R rupees per tola (use the live figure from this page).
- Total value = 10 × R.
- Zakat = (10 × R) × 2.5%.
So if the 22K rate were, say, Rs 410,000 per tola (an illustrative number — use today's actual rate), the total value would be Rs 4,100,000, and the zakat due would be Rs 102,500.
The arithmetic is straightforward; the only number that changes is the live rate, which is why you should always calculate with the current figure rather than an old one.
When and how to pay zakat in Pakistan
Most Pakistanis calculate and pay their zakat during Ramadan — partly for the spiritual reward of giving in the holy month, and partly because it's a convenient fixed point in the year to use as your hawl anniversary. Strictly, zakat is due once your own wealth completes one lunar year above the nisab, but picking a consistent annual date (such as a date in Ramadan) is a common and practical approach.
In Pakistan, banks deduct zakat on certain savings accounts on the 1st of Ramadan under the Zakat and Ushr Ordinance. That deduction applies to specific bank deposits — not to your physical gold and jewellery, which you are responsible for assessing and paying yourself.
Common mistakes to avoid
- Valuing gold at purchase price. Zakat is on current market value, not what you originally paid.
- Forgetting mixed assets. If you hold gold and cash, remember the silver-nisab consideration — you may owe zakat even on a small amount of gold.
- Ignoring jewellery (if you follow the Hanafi school) on the assumption that worn jewellery is exempt.
- Using the wrong karat rate. Value 22K at the 22K rate, not the 24K rate — otherwise you'll overpay.
- Calculating once and forgetting. Zakat is an annual obligation; it recurs every lunar year that you remain above the nisab.
Frequently asked questions
What is the nisab of gold in tola? The gold nisab is 7.5 tola (87.48 grams). If gold is your only zakatable asset, zakat is due once you own at least this much and have held it for one lunar year.
Is zakat due on gold jewellery I wear? According to the Hanafi school, which most Pakistanis follow, yes — worn jewellery is included. Some other schools exempt jewellery in regular use. Follow your own madhhab or ask a scholar.
How much zakat is due on 10 tola of gold? Multiply the current market value of your 10 tola (at the right karat rate) by 2.5%. For example, at a 22K rate of Rs 410,000 per tola, 10 tola is worth Rs 4,100,000, so the zakat would be Rs 102,500. Use today's live rate for your own figure.
Do I pay zakat on gold every year? Yes. Zakat is an annual obligation that recurs each lunar year your holdings remain at or above the nisab.
Should I use the gold or the silver nisab? If gold is your only zakatable asset, use the gold nisab. If you hold a mix (gold plus cash or trade goods), many scholars advise using the lower silver nisab, which makes zakat due on more people's wealth. Ask a scholar if your situation is mixed.
Do I calculate zakat on the price I paid or today's price? Today's market price. Zakat reflects the current value of the gold, regardless of what you paid for it.
A note before you calculate
Zakat is both a financial calculation and an act of worship, and the details — especially around jewellery and mixed assets — depend on which school of thought you follow and your exact circumstances. This guide covers the mainstream positions in Pakistan, but it is not a substitute for personalised guidance. For anything specific to your situation, please consult a qualified scholar.
When you're ready to work out the value of your gold, you can use today's live gold rate and the gold calculator on this site to get the current figure in seconds.
