Zakat on gold nisab, rate and calculation

Zakat on gold is probably the most poorly applied obligation in Muslim wealth, not through negligence but through confusion. Three questions come up systematically: from what amount is it due, what rate should be applied, and whether family jewellery must be included. They have precise answers, and two of them admit of a documented difference between schools of jurisprudence that is better known in advance than discovered.

This article sets out the complete method, with the figures converted into Swiss francs, and honestly flags the points on which the sources do not agree. It extends our dossier on halal gold and the conditions for a compliant investment, where the question of zakat was addressed only in summary.

What is zakat on gold?

Zakat is the compulsory annual levy on certain categories of wealth, paid to designated beneficiaries. It constitutes the third pillar of Islam and is distinct from voluntary almsgiving: it is due, at a fixed rate, on a defined base. Gold has been among zakatable assets from the outset, in the same way as silver metal, cash, goods held for sale and certain income.

Three conditions must be met for zakat on gold to be payable. The quantity held must reach the nisab, the minimum threshold below which nothing is due. That quantity must have remained in your possession for a hawl, a full lunar year. And the gold must be held in full ownership, which excludes, for example, gold that has been bought but not yet delivered or allocated — a requirement that coincides exactly with that of compliance, set out in detail in our guide to buying gold in Switzerland.

What is the nisab for gold, in grams and in francs?

The nisab for gold is 20 mithqal. The whole difference lies in the weight attributed to the mithqal: 4.25 grams for the AAOIFI standards and the Maliki, Shafi'i and Hanbali schools, which gives 85 grams; 4.374 grams in the Hanafi tradition, which gives 87.48 grams. It is therefore not a rounding error but two distinct historical references, both of them defensible.

Reference threshold	Value at the price on 17 August 2026
Gold nisab — 85 g AAOIFI	Approximately 9 800 CHF, on the basis of a gram of fine gold at 115.26 francs. The reference of the AAOIFI standards and of the Maliki, Shafi'i and Hanbali schools.
Gold nisab — 87.48 g Hanafi	Approximately 10 080 CHF at the same price. The reference of the Hanafi school, also used by certain international charitable organisations.
Silver nisab — 595 g AAOIFI	Approximately 1 030 CHF, on the basis of a gram of silver at 1.727 francs. That is a threshold nearly nine times lower than that of gold.
Silver nisab — 612.36 g Hanafi	Approximately 1 060 CHF at the same price.

Prices recorded on 17 August 2026: 115.26 CHF per gram of gold, 1.727 CHF per gram of silver. These values vary daily — the weight in grams, by contrast, does not move. It is therefore always the weight that should be taken as the reference, and the conversion that should be redone at the moment of the calculation.

Should you use the nisab for gold or the one for silver?

The gap is considerable: approximately 9 800 francs against 1 030 francs at the August 2026 price, a ratio of more than nine. The choice of threshold therefore determines whether zakat is due or not for a large proportion of modest estates. The commonly accepted rule is simple: if your zakatable wealth consists solely of gold, apply the nisab for gold. If it combines gold, cash, investments and goods, the silver threshold is most often recommended.

The reason given is explicit in contemporary fatwas: the lower nisab is more favourable to the beneficiaries of zakat, and a greater number of estates becomes subject to it. This position is far from unanimous — Sheikh Yusuf al-Qaradawi argued, on the contrary, for the nisab for gold as the sole reference, on the grounds that the value of silver has collapsed by comparison with the prophetic era. Both positions are documented; it is not for a training organisation to decide in your place.

Which rate applies: 2.5% or 2.577%?

The rate of zakat on gold is 2.5%, with no difference of view. The question of the adjusted rate arises elsewhere: zakat is calculated over a lunar year, of about 354 days, whereas most people reason in terms of a civil year of 365 days. Anyone who adopts a fixed solar due date — 31 December, for example — mechanically lets eleven days slip each year.

The National Zakat Foundation states that a calculation over a solar year may be accepted, provided an adjusted rate of 2.577% is applied. The arithmetical check is immediate: 2.5% multiplied by 365.25 then divided by 354.37 does indeed give 2.577%. We attribute this figure to that organisation rather than to AAOIFI directly, having been unable to verify it in the text of the standard itself.

Is gold jewellery subject to zakat?

This is the best-known difference, and the one with the heaviest practical consequences, since it concerns the family gold held by almost every household. The Hanafi school holds that zakat is due on all gold, including jewellery intended to be worn. The Maliki, Shafi'i and Hanbali schools exempt ornamental jewellery for personal use, provided it is neither hoarded nor intended for trade.

The reference site IslamQA adopts the Hanafi position, relying in particular on hadiths reported from Aisha and from Amr ibn Shu'ayb. Other institutions adopt the opposite, majority position. Two practical consequences: jewellery held as a store of value, and not worn, is zakatable according to all the schools; and in case of hesitation, paying the zakat remains the more prudent choice.

How do you calculate your zakat on gold in Swiss francs?

The method comes down to four steps, and it takes a quarter of an hour once a year. First step: weigh all the zakatable gold in grams of fine gold — a piece of 18-carat jewellery counts only for 750 thousandths of its weight, a 20-franc Vreneli represents approximately 5.8 grams of fine gold. Second step: multiply that weight by the price per gram on the due date. Third step: compare it with the nisab chosen. Fourth step: if the threshold is reached and the lunar year has elapsed, apply 2.5%.

A worked example, at the price on 17 August 2026. A person holds two 100-gram bars and five Vreneli, that is approximately 229 grams of fine gold. Valuation: 229 × 115.26, or approximately 26 395 francs. The nisab of 85 grams is far exceeded. Zakat due: 26 395 × 2.5%, or approximately 660 francs. If that person also holds cash and compliant shares, those amounts are added to the zakatable base under the same rules.

Is gold held in an ETF or in a metal account zakatable?

The principle is constant: if the gold genuinely belongs to you, it is zakatable. An ETF fully backed by allocated physical gold represents gold, and its market value enters the base. So does an allocated metal account. A product that represents only a claim on an issuer, with no determined gold, raises a question of compliance first, before that of zakat — we set this point out in detail in our comparison halal gold ETFs or physical gold.

For shares held in a portfolio, the logic is different: zakat is calculated on the underlying zakatable assets of the company, or according to flat-rate methods accepted by contemporary standards. Our article on Sharia-compliant ETFs addresses this question of screening, which is the precondition for it.

Zakat and Swiss taxation: two logics not to be confused

The two obligations coexist and do not replace one another. Wealth tax is due to the canton and to the Confederation, on the official value of gold at 31 December published by the Federal Tax Administration. Zakat is a religious obligation, calculated over a lunar year, on a due date that you set yourself, and paid to designated beneficiaries.

Two practical differences are worth noting. First, the due dates do not coincide: the tax deadline is fixed, whereas the zakat due date shifts by about ten days each year. Second, the valuation bases differ — the official FTA value on one side, the price on the due date on the other. Keeping an annual record of both avoids having to redo all the work the following year. To situate zakat within the overall organisation of your wealth, the dossier halal investing in Switzerland sets out the complete method.