nisab

Nisab is the minimum amount of wealth a Muslim must possess before zakat becomes obligatory. It serves as the financial threshold that determines whether a person owes zakat on their wealth.

Traditionally, nisab is defined by the value of 85 grams of gold or 595 grams of silver. Because gold and silver prices fluctuate, many Muslims determine nisab each year using current prices, sometimes using the gold standard, sometimes the silver standard, or applying both thresholds where appropriate.

Zakat is due on wealth above nisab after it has been held for a lunar year (hawl). The typical rate is 2.5% for zakatable wealth such as cash, gold, silver, and trading stock. Other categories, like agricultural produce and livestock, have separate rules and thresholds.

In practice, communities may differ in applying nisab. Some rely on local currency equivalents, others follow a particular school of thought or official guidance. Modern calculation often uses current market prices of gold or silver to determine nisab and the corresponding zakat obligation.