Business Zakat Guide — How to Calculate Zakat on Your Business

Business zakat is 2.5% of your zakatable business wealth, due once a lunar year (hawl) has passed with that wealth at or above nisab. This guide walks through the calculation in four steps with a worked example.

Zakatable business assets are cash, receivables you expect to collect, and inventory valued at current market selling price. Fixed assets used to run the business — equipment, vehicles, premises — are not zakatable. Short-term liabilities due within the year are deducted before applying the 2.5% rate.

The short version

Step 1 — Fix your hawl date

Step 2 — Check nisab

Nisab is the value of 85 grams of gold or 595 grams of silver, measured on your hawl date.

Step 3 — List zakatable assets

Step 4 — Deduct what you owe now

Worked example

Common mistakes

Frequently asked questions

Related pages