When Should Zakat Be Paid? A Simple Guide for Muslims

When should Zakat be paid? This is a common question Muslims raise. Zakat is a key part of Islam. It is a compulsory charity that cleans the wealthy and benefits the poor. But timing is a critical aspect of zakat.

In this guide, we explain when zakat is due to be paid. We’ll look at the different types of zakat, how to determine when it’s due, and why paying it on time is so important. In the end, you will know precisely when and how to pay zakat correctly.

What is Zakat?

Zakat is an obligatory charity in Islam. The Five Pillars of Islam include it. Zakat is the act of donating a portion of your wealth to those in need. And help those who are in need by purifying your wealth.

Zakat is obligatory for Muslims whose wealth exceeds a certain amount, which is known as the Nisab. The sum is payable in cash, deposits, gold, and silver.

Why is Zakat necessary?

Zakat serves many vital purposes in Islam:

1. Purifies Your Wealth: Zakat purifies your assets, which can be used.
2. Helps the Poor: Zakat helps those in need, reducing poverty.
   
3. Promotes Fairness: It ensures wealth is shared and reduces inequality.
   
4. Spiritual Reward: P Giving zakat takes you closer to Allah and earns you spiritual rewards.

The role of zakat in society promotes social justice and provides betterment in society.

What is the Zakat Year?

The zakat year is the period after which zakat must be paid. When your wealth reaches the Nisab threshold for the first time, your zakat year begins. Once your wealth reaches or exceeds the Nisab, you are required to pay zakat on it after one lunar year has passed (roughly 354 days).

The Hijri (lunar) calendar, which is shorter than the Gregorian calendar, determines the timing for the zakat year. That means that the date when your zakat is due will shift a few days each year on the Gregorian calendar.

When Should Zakat Be Paid?

Zakat on Wealth (Zakat al-Mal)

This is where you pay your zakat once a full lunar year has passed after your wealth first crossed the Nisab.

• When to pay: Zakat becomes due when one lunar year has elapsed. For example, if your wealth reaches the Nisab threshold on January 1, 2023, your zakat will be due on January 1, 2024. At the end of your zakat year, you will pay zakat on your wealth changes.

Zakat al-Fitr (Fitrana)

Zakat al-Fitr is distinct from the regular zakat. It’s a set amount paid to the poor ahead of Eid al-Fitr, which marks the end of Ramadan. Zakat al-Fitr allows the poor to celebrate Eid.

• We recommend paying it a few days before Eid to ensure the poor receive it on time.

Zakat al-Fitr is an annual tithe, but it is a fixed sum, not a percentage of wealth.

Zakat on Business

If you own a business or investments, zakat will be calculated according to the value of your business assets, profits, or stocks.

• When to pay: Zakat on business wealth is paid once a year. Just like personal wealth, it is payable after a full lunar year has passed since your business assets first met the Nisab.

In the same way you calculate zakat on your savings or assets, you have to calculate zakat on your business’s wealth.

When Does the Zakat Year Begin?

When does the Zakat year start? If your wealth increases gradually, then the zakat year begins when wealth first reaches the value of the Nisab and ends upon the completion of one lunar year.

In our example, if your savings first reached the Nisab on March 10, 2023, your zakat year would begin on that date. This means that your zakat will be due on March 10, 2024, because it will have been one complete lunar year.

How to Track Zakat Payment Dates

To remember when zakat is due, you need to remember the date of your wealth meeting the Nisab threshold for the first time. Here are some of the ways you can do this:

• Mark the Day: Write it down in your agenda or add it to your calendar app.
• Use Zakat apps: Several apps assist you in tracking Zakat payments and remind you of due dates.

Review your wealth regularly: Once your zakat year finishes, work out the zakat due on your total wealth.

You can pay your zakat on time by tracking your zakat year, which will tell you when it’s due.

Why Paying Zakat on Time Matters

Three factors necessitate timely zakat payments.

1. It helps you fulfill your obligation: Zakat is a religious obligation, and paying it on time helps you fulfill your responsibility as a Muslim.
2. It benefits those in need: Zakat promptly aids the poor at the time when they need it most, such as Ramadan and Eid.
3. There are rewards: Zakat paid at the right time brings Allah’s rewards, and on time also brings additional blessings.

Paying Zakat During Ramadan

In Islam, Ramadan is a special month. Because the rewards are multiplied during Ramadan, many Muslims choose to pay zakat during the holy month of Ramadan.

• When is the Zakat payment due?  Zakat paid?  Zakat comes due after one lunar year has passed, but giving it in the last ten days of Ramadan will earn you more reward. It is also a good time to pay the zakat al-fitr.

When the poor receive help during Ramadan, they offer zakat, enabling them to fast during Ramadan and celebrate Eid. The impoverished who receive assistance during Ramadan give zakat, which allows them to celebrate Eid and fast during the month.

Common Mistakes to Avoid

Mistakes to Avoid in When to Pay Zakat

• Paying zakah too early: Zakah becomes obligatory after a lunar year, so do not pay it ahead of time.
• Forgetting Zakat al-Fitr: Zakat al-Fitr should be paid prior to Eid prayers and never after.
• Not keeping track of the zakat year: Know the date on which your wealth first exceeded the Nisab.

You will be able to pay zakat accurately and on time by avoiding these mistakes.

Final Thoughts on When Should Zakat Be Paid

When is Zakat due? This is a frequently asked question, given that performing zakat is a religious duty. Whether paying zakat for wealth, business, or zakat al-Fitr, understanding the context of the payment is critical to ensuring that it happens at the right time.

Paying zakat on time lets the needy use it when they need it most. By tracking your zakat year and paying on time, you make sure that your zakat is valid, effective, and brings spiritual rewards.