To make a Zakat in 2026, you must take 2.5% of your total qualifying wealth, assuming that wealth exceeds the Nisab threshold and that you have owned that wealth for one complete Islamic lunar year (the period known as the Hawl). Based on the silver standard, the estimated Nisab for February 2026 was approximately £1,130 ($1,600) whereas, based on the gold standard, the estimated Nisab is approximately £10,390 ($14,360). Many scholars suggest that the silver standard be utilized so that more people benefit from the Zakat to be distributed to the poor. Zakat can be made at any time, but it is often preferred to make Zakat in the blessed month of Ramadan to increase the benefits of the reward in accordance with your good deeds. Organizations like KORT provide a secure and reliable way to donate Zakat and support needy families and orphans in Pakistan and Kashmir.
Zakat is not just a charitable act; it is a divine duty, and one of the five pillars of Islam. The Arabic term ‘zakat’ literally means ‘purification’ and ‘increase’, and reflects the belief that by donating a small portion of your wealth to those in need, you are cleansing your remaining possessions and inviting blessings (barakah) into your life.
A world in which there is increasing economic inequality, provides a rationale for the systemic distribution of wealth through Zakat to serve as a vital social safety net. Performing this obligation in 2026 requires a correct comprehension of current market valuations, the applicable rules of eligibility and the best way to utilize your funds for Zakat donations.
Not every Muslim must pay Zakat. The duty of paying Zakat is only upon those Muslims who qualify to be “sahibun nisaab”, meaning they have wealth in excess of a particular minimum threshold.
The Nisab Threshold: Your net zakatable wealth must exceed or be equal to the value of 87.48 grams of gold or 612.36 grams of silver. Although the price of gold is much higher than that of silver, using the silver Nisab permits more people to contribute, and therefore, to provide additional assistance to the “asnaf” (those categories of persons who are eligible to receive Zakat).
The Hawl (Lunar Year): You must have held wealth in excess of the Nisab threshold for one complete Islamic lunar year. When you hold wealth above the Nisab threshold, your Zakat anniversary occurs when your wealth first crosses the Nisab threshold.
If you have held wealth that was in excess of the Nisab threshold for only part of the year, and your total wealth held during the year exceeded the Nisab threshold, you calculate your Zakat on the total amount of wealth held on your Zakat anniversary date. If your total wealth decreased below the Nisab threshold at any point during the year but returned above the Nisab threshold prior to your Zakat anniversary date, you must still pay Zakat on the total amount of wealth you held on your Zakat anniversary date.
When you intend to give Zakat, you must conduct a thorough examination of your global wealth. Zakat is payable on wealth that is capable of growth and/or that is deemed to be in excess of what you require for your normal living expenses.
Cash and Liquid Funds: This includes cash in your bank account(s), savings account(s), digital balances in mobile apps or e-wallets and any other liquid funds available to you.
Gold and Silver: Any gold or silver that you own, regardless of whether you wear it or store it, is zakatable based on its current market value.
Investments: Stocks, shares, unit trusts and certain types of pension funds are examples of investments that are zakatable. In cases where you have invested in stocks, you will typically calculate the Zakat based on the current market value of the stock.
Business Assets: If you are a business owner, you must calculate Zakat on the total value of your tradeable inventory, raw materials and cash available for use in your business.
Amounts Due to You: If you have lent money to anyone and you are reasonably assured that the borrower intends to repay you, you must include that amount in your Zakat calculation.
You are not obligated to pay Zakat on any asset(s) that you utilize for your day-to-day living. Examples of assets that are not subject to Zakat include:
Your primary residence
Your personal vehicle
Household furniture
Clothing
Tools necessary for your occupation
Once you have organized your financial records, calculating your Zakat is a simple arithmetic calculation.
Identify All of Your Assets: Calculate the value of all of your cash, gold, silver and business inventory.
Deduct All Debts: Subtract any immediate debts (e.g., this month’s rent, utilities, etc.) and any short-term loan repayment obligations that you expect to make over the next twelve months.
Verify Your Net Wealth against the Nisab Value: Compare your net wealth against the current Nisab value. If your net zakatable wealth is greater than £1,130 in 2026, you are eligible to pay Zakat.
Calculate 2.5% of Your Net Wealth: Multiply your net total by 0.025.
For example, if your net zakatable wealth is £10,000, your Zakat for 2026 would be £250. To simplify the process of calculating your Zakat, you can utilize the KORT Zakat calculator that automatically updates with the latest gold and silver prices.
The Quran (9:60) identifies the following eight categories of people who are eligible to receive Zakat:
The Poor (Al Fuqara): Those who have no source of income or property.
The Needy (Al Masakin): Those who have some source of income, but cannot satisfy their basic needs.
Zakat Administrators: Those tasked with collecting and distributing the Zakat.
New Converts to Islam: To assist new converts to Islam who may be experiencing hardship.
The Enslaved: To assist individuals who are slaves or who are in bondage or human trafficking.
Debtors: Those burdened with excessive debt for basic necessities.
In the Cause of Allah: Those engaged in the struggle to serve Allah or pursuing knowledge.
The Wayfarer: Stranded travelers or refugees who lack adequate resources.
Please remember that Zakat cannot be given to your immediate family members for whom you are already responsible for financially supporting (i.e., your spouse, parents, or children). However, providing Zakat to financially struggling extended family members (such as siblings or cousins) is encouraged as it creates a sense of unity among the family.
By choosing to provide your Zakat to the Kashmir Orphan Relief Trust, you are contributing to a tradition of transparency and compassion. KORT utilizes a 100% donation model for Zakat, which means that every dollar of your Zakat donation is directed to the needy orphans and destitute families in Pakistan and Kashmir.
Providing Zakat through KORT enables you to support life saving programs for orphan sponsorship, allowing vulnerable children who have been orphaned to obtain a safe place to live, wholesome meals to eat and quality education. Additionally, Zakat donations to KORT fund critical infrastructure projects (such as clean water filtration systems in rural villages) to create long-lasting economic and social development for the Muslim Ummah.
Yes, you are allowed to make installment payments of your Zakat over the course of the year, as long as the total amount is paid by the time of your Zakat anniversary. Many individuals find making installment payments to be a simpler method of budgeting than making a single large payment.
No, you do not pay Zakat on your principal residence or the vehicle that you utilize for personal transportation. Both of these are considered basic necessities for living.
If you failed to make Zakat payments in the past, you must calculate the amount owed for each of the previous years based on your wealth at that time and the Nisab value for each of the respective years. This “Qada” Zakat should be paid as quickly as possible to fulfill your Zakat obligation.
No, Zakat (Zakat al Mal) is based on your total accumulated wealth and is 2.5% of your assets. Fitrana (Zakat al Fitr) is a smaller, flat rate donation (usually the cost of one meal) made by every person in a household prior to the Eid al Fitr prayer at the end of the holy month of Ramadan.
Zakat is intended exclusively for the Muslim community. If you desire to support a non-Muslim in need, you should use Sadaqah (charitable donation), which does not have the same restrictions and is a very rewarding act of kindness.
