Who Is Required to Pay Zakat al Mal? Does Having Less Than the Nisab Mean Zakat Is Not Obligatory?
Question
My first question is about who qualifies to pay zakat al mal. I am aware that there is the threshold of Nisab that correlates to the price of gold or silver. The current threshold equals around $26000 CAD in gold. This can seem high for people, especially students. Does this mean having less then $26000 CAD of wealth makes you ineligible for zakat al mal?
Answer
Alhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain.
1. The Shari Context
Zakat al mal becomes obligatory when a Muslim possesses zakatable wealth that reaches the nisab and remains in their possession for one lunar year (hawl). The nisab is the minimum threshold that distinguishes a person who has surplus wealth from someone whose wealth has not reached the level that obligates zakat.
The Prophet said:
“There is no zakat on wealth until a year passes over it.”
Jami at Tirmidhi
The nisab was originally defined by the Prophet using gold and silver measurements, namely twenty dinars of gold or two hundred dirhams of silver. In modern times, these values are converted into local currency in order to determine whether a person’s savings have reached the required threshold.
2. Scholarly Discussion
Classically, scholars referenced both gold and silver to determine nisab. However, contemporary scholars have widely discussed which benchmark better reflects real financial capacity in modern economies.
Many scholars today use the gold nisab when calculating zakat on cash and savings, especially in countries where the silver threshold would be extremely low relative to modern living standards. The gold standard better reflects the original intent of zakat, which is to obligate charity upon those who possess meaningful surplus wealth.
Based on the classical measure of approximately 85 grams of gold, the nisab amount fluctuates depending on the current gold price. In Canada today, this typically places the nisab around 15 – 18 K. based on 21K gold not necessarily as high as $26,000 CAD.
Regardless of the exact currency conversion, the fundamental rule agreed upon by the scholars is clear: zakat is not obligatory unless a person’s zakatable wealth reaches the nisab.
3. Application to the Question
If a person’s total zakatable wealth is below the nisab, then zakat al mal is not required.
Zakatable wealth generally includes assets such as:
- Cash savings
- Money in bank accounts
- Gold and silver
- Investment assets intended for growth
- Business inventory
It does not include personal necessities such as a primary residence, clothing, furniture, personal vehicles, or items used for daily living.
Therefore, if someone has less than the nisab amount of zakatable wealth, they are not obligated to pay zakat. This applies whether the person is a student or a working professional. Zakat only becomes obligatory once a person possesses wealth at or above the nisab for a full lunar year.
4. Relevant Usul Principle
الأصل براءة الذمة
The default state is freedom from obligation
This principle means that a person is not considered legally responsible for an obligation until the conditions that create that obligation are fulfilled. In the case of zakat, the obligation only begins when the nisab threshold is reached and a lunar year has passed. If these conditions are not present, the person is not required to pay zakat.
Final Ruling
If a person’s zakatable wealth is below the nisab, then zakat al mal is not obligatory upon them. Once their wealth reaches the nisab and remains at or above that level for one lunar year, zakat becomes due at 2.5 percent of the qualifying wealth.
And Allah knows best.