Zakat on wealth at 2.5% above the nisab.
Zakat due
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Net wealth
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Income-tax rebate
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How zakat on wealth works
Zakat on wealth, zakat harta, is an annual obligation on a Muslim's net zakatable assets once those assets cross a threshold called the nisab and have been held for a full lunar year. The rate is 2.5 percent, which is one-fortieth, a figure rooted in fiqh and stable across the Malaysian state zakat bodies that collect it. That arithmetic does not change from year to year, so it is safe to rely on. What does move is the ringgit value of the nisab, because it tracks the price of 85 grams of gold and is published afresh by each state religious authority. This calculator takes your zakatable assets, subtracts your liabilities to get net wealth, checks that figure against the nisab you enter, and applies 2.5 percent only if the threshold is met.
It is built for a Muslim taxpayer in Malaysia estimating the year's zakat and wanting to see, in the same view, how much will come back as an income-tax rebate. Zakatable assets typically include cash, savings, gold above personal-use limits, shares, and business merchandise. Personal items such as your home and your car are generally outside the calculation.
Two authorities, two halves of the picture
It helps to be clear about who governs what. The nisab value and the collection of zakat itself are the responsibility of each state Islamic religious council, the likes of LZS in Selangor or PPZ-MAIWP in the federal territories. They set the published nisab and receive your payment. The income-tax side belongs to LHDN, the Inland Revenue Board of Malaysia. Zakat and fitrah paid by a Muslim individual is treated as a rebate against income tax payable. A rebate is stronger than a deduction: a deduction lowers your taxable income, but this rebate cuts the actual tax bill ringgit for ringgit. So as modelled here, paying zakat reduces your income tax by the same amount you paid, with no cap. Confirm the current rebate treatment with LHDN, since the mechanics of reliefs and rebates are reviewed periodically.
A worked figure: RM55,000 of net wealth
Suppose you hold RM60,000 of zakatable assets and owe RM5,000 in liabilities, against a current nisab of RM25,000. Net wealth is RM55,000, which clears the nisab, so zakat is due on the full net figure. Using the rate this calculator applies, the steps are below.
| Step | Amount |
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The chart shows how the RM1,375 of zakat, when fully rebated, lands back against your tax. If your income tax for the year were, say, RM4,000, the rebate brings it down to RM2,625.
The edge case worth knowing: rebate cannot exceed your tax
The rebate offsets income tax payable, but it cannot turn that bill negative. If your zakat for the year is larger than the income tax you owe, the excess is not refunded to you as cash. Say your zakat comes to RM3,000 but your income tax is only RM1,800. The rebate wipes out the RM1,800, and the remaining RM1,200 of zakat is simply your charitable obligation fulfilled, not a credit you carry forward. This matters most for people with substantial wealth but modest taxable income, such as retirees living off savings. The zakat is still due in full to the religious council; only the tax-offset portion is limited.
A practical tip: pay your zakat within the same year of assessment you want it to offset, and keep the official receipt from your state zakat body. LHDN recognises the rebate on the strength of that documentation. A common mistake is leaving net wealth just under the nisab in the calculator by forgetting to include gold or shares, which understates both the zakat due and the rebate you could claim.
Frequently asked
Do I pay zakat on my EPF savings?
Treatment of EPF, KWSP, balances varies between state authorities and over time. Some assess zakat on EPF only when the money is withdrawn and in your hands, others take a different view. Because this is a point of religious ruling rather than a fixed national rule, confirm with your state zakat council before including or excluding your EPF balance.
What if my net wealth sits just below the nisab?
Then no zakat on wealth is due for that year, and the calculator returns zero. The nisab is a genuine cliff: cross it and the full 2.5 percent applies to all your net wealth, not just the part above the line. Since the nisab value updates with the gold price, a figure that was below the threshold last year can be above it this year, so recheck the published nisab annually.
Is zakat on income different from this?
Yes. This tool covers zakat on wealth held for a lunar year. Some Malaysians instead pay zakat on income, calculated on earnings as they are received, often through monthly salary deductions. Both qualify for the same income-tax rebate, but you should not double-count: assets already zakated as income should not be zakated again as wealth.