Zakat at 2.5% of qualifying net wealth above nisab, in AED.
Zakat due
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Zakatable wealth
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Nisab threshold
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A duty of faith, not a tax
Zakat is one of the pillars of Islam, an annual giving obligation rather than a charge the UAE state collects. The UAE has no personal income tax and no wealth tax, so nothing here is levied by the Federal Tax Authority. Zakat is calculated and given by the individual according to religious rules. This tool exists to do the arithmetic, taking 2.5 percent of your qualifying net wealth once that wealth sits above a threshold called the nisab. The rate the calculator applies, 2.5 percent, is the long-settled and widely agreed figure for the zakat due on money and trade wealth, so unlike a young tax rate it is not in flux.
What does move is the nisab in dirham terms, because it is pegged to the value of precious metal rather than a fixed amount. The tool uses a nisab of AED 24,000 as an indicative figure for roughly 85 grams of gold. Gold prices change daily, so treat that as a placeholder and confirm the current nisab against the live gold price, or against the gold and silver rate published by a reputable source, before you decide whether you owe and how much.
What goes into the pot, and what stays out
Zakat is due on wealth that is liquid or growing, not on the things you use. Cash and bank balances count. Gold and silver count. Investments, business stock, and money others owe you that you expect to collect all count. Your home, your car, and your personal belongings do not, because they are for use rather than accumulation. From the total of your zakatable assets you subtract immediate short-term debts, the bills and repayments due now, to reach your net qualifying wealth. Take the default figures to see it assembled.
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The chart shows how qualifying net wealth breaks down into the Zakat due and the wealth retained.
Because the AED 150,000 of net wealth clears the AED 24,000 nisab, zakat is due, and 2.5 percent of it is AED 3,750. Had the same person held only AED 20,000 after debts, they would sit below the nisab and owe nothing for that year.
The one full lunar year that decides it
Zakat is not triggered by touching the nisab once. The wealth must stay at or above the nisab for one full lunar year, the hawl, which runs about eleven days shorter than a solar year. You pick a fixed date in the Islamic calendar, often in Ramadan because many prefer to give then, and you value your wealth on that same date each year. Small dips during the year do not usually break the cycle as long as you remain above the nisab at the start and end. A practical tip: set a recurring reminder on your zakat date and value everything on that single day, rather than trying to track a moving balance, because zakat is assessed on a snapshot, not an average.
Two points often cause confusion. First, the choice of nisab basis matters. The gold nisab of about 85 grams gives a higher threshold than the silver nisab of about 595 grams, and many scholars favour the silver basis because it brings more people into giving. The tool uses a gold-based figure, so if you follow the silver basis your nisab, and therefore whether you owe, may differ. Second, debts. Only short-term obligations due now reduce your zakatable wealth, not the entire outstanding balance of a long mortgage. A common mistake is subtracting a full home loan and concluding no zakat is due, when only the instalments due in the near term should come off.
Questions people ask about zakat
Do I pay zakat on the gold jewellery I wear?
Scholars differ. Some hold that gold and silver are always zakatable regardless of use, while others exempt jewellery worn regularly for personal adornment. This calculator includes the value you enter in the gold and silver field, so if you follow the view that worn jewellery is exempt, simply leave that portion out of the figure. Decide according to the ruling you follow, and when unsure, ask a knowledgeable scholar.
Is zakat the same as the charity I already give?
No. General voluntary charity, sadaqah, is separate from zakat and does not discharge the obligation. Zakat is a specific duty of 2.5 percent on qualifying wealth, owed once the nisab and the lunar year are met, and it must reach eligible recipients defined in Islamic law. You can certainly give more as voluntary charity, but that extra giving sits on top of your zakat rather than counting toward it.