In Islam, zakat is a form of charity that is required of Muslims who have a certain level of wealth. It is one of the Five Pillars of Islam and is seen as a way for Muslims to purify their wealth and share it with those in need.
According to Islamic tradition, zakat is required of any adult Muslim who meets the following criteria:
- They are free (not a slave).
- They have reached the age of puberty.
- They have a certain level of wealth, known as the nisab. The nisab is the minimum amount of wealth that must be held for a year before zakat is required. The amount of the nisab is based on the value of gold and is currently set at approximately $4,000.
- They own their wealth themselves and are not responsible for the financial needs of others (such as children or dependent parents).
If a Muslim meets all of these criteria, they are required to pay zakat on their wealth, including cash, investments, and physical assets such as jewelry and real estate. Zakat is typically calculated as a percentage of a person’s wealth and is usually around 2.5%.
It is important to note that zakat is not a tax and is not collected by the government. Instead, it is a personal obligation that each Muslim must fulfill on their own. The money collected from zakat is typically used to support those in need, including the poor, orphans, and widows.