You are required to pay Zakat al-Māl if:
You are Muslim
You own wealth above the Nisab (minimum threshold)
You have held that wealth for one lunar year (ḥawl)

2.5% of eligible wealth

This includes:
Cash and savings
Gold and silver
Business inventory
Investment assets (with conditions)

The Qur’an (Surah At-Tawbah 9:60) specifies eight eligible categories for zakat distribution:
“Obligatory charities (Fard Sadaqaat) expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise.”
— [At-Tawbah, 9:60]

1. The Poor – Fuqaraa (plural), Faqir (singular)
Those who do not possess enough provisions to meet their basic needs.
Examples include:
A homeless person in your community
Children whose families qualify for free or reduced-price lunches
Orphans
Anyone who cannot live a stable life, feed themselves and their family, access healthcare, or grow into a productive citizen falls under this category.

2. The Needy – Miskeen (مِسْكِين)
The Miskeen is indigent or poverty-stricken, but typically has slightly more than the Faqir.
They may have enough for basic needs, but unforeseen circumstances—like illness, inability to pay housing, or education costs—make them dependent on assistance.

The Prophet ﷺ described the Miskeen as:
“The Miskeen is not the one who goes around among the people begging maybe receiving a morsel or two, and a date or two. Rather, the Miskeen is the one who does not have enough wealth to suffice him; however, he does not let others know about it in order to be given charity, and he does not stand and beg people.”
— [Sahih Muslim 1039]

3. Those Employed to Collect Zakat – Aamileen
Zakat collectors are appointed by an Islamic authority or trusted organization. They help calculate, collect, and distribute zakat responsibly.

4. Bringing Hearts Together
Zakat can be used to reconcile hearts, particularly for:
New Muslims (converts)
Friends of the Muslim community
Supporting them strengthens social bonds and fosters understanding and cooperation.

5. Freeing Captives and Slaves
Though slavery is largely abolished today, trafficked individuals or those in captivity can receive zakat to gain freedom and independence.

6. Those in Debt
Zakat can help alleviate burdens of debt, enabling individuals or families to regain financial stability.

7. For the Cause of Allah
Zakat may be spent on activities that support Islam, such as:
Building mosques
Supporting Islamic schools
Funding Muslim youth programs

8. Travelers – Musafir
Travelers away from home who lack resources can receive zakat.
This includes:
Refugees fleeing violence
Stranded motorists
Anyone temporarily in need while away from their home

Zakat al-Māl: Obligatory, fixed amount, specific recipients
Sadaqah: Voluntary, can be given anytime to anyone in need

Zakat al-Māl:
Purifies wealth
Reduces inequality
Strengthens the community
Brings blessings (barakah) into one’s wealth

“You shall observe the Contact Prayers (Salat) and give the obligatory charity (Zakat), and bow down with those who bow down.”

[Al-Baqarah, 2:43]

“They ask you about giving: say, “The charity you give shall go to the parents, the relatives, the orphans, the poor, and the traveling alien.” Any good you do, God is fully aware thereof.”

[Al-Baqarah, 2:215]

“We made them (Abraham and his sons) imams who guided in accordance with our commandments, and we taught them how to work righteousness, and how to observe the Contact Prayers (Salat) and the obligatory charity (Zakat). To us, they were devoted worshipers.”

[Al-Anbya, 21:73]

“You shall observe the Contact Prayers (Salat) and give the obligatory charity (Zakat). Any good you send forth on behalf of your souls, you will find it at Allah. Allah is seer of everything you do.”

[Al-Baqarah, 2:110]

“Righteousness is not turning your faces towards the east or the west. Righteous are those who believe in GOD, the Last Day, the angels, the scripture, and the prophets; and they give the money, cheerfully, to the relatives, the orphans, the needy, the traveling alien, the beggars, and to free the slaves; and they observe the Contact Prayers (Salat) and give the obligatory charity (Zakat); and they keep their word whenever they make a promise; and they steadfastly persevere in the face of persecution, hardship, and war. These are the truthful; these are the righteous.”

[Al-Baqarah, 2:117]

“The believing men and women are allies of one another. They advocate righteousness and forbid evil, they observe the Contact Prayers (Salat) and give the obligatory charity (Zakat), and they obey GOD and His messenger. These will be showered by GOD’s mercy. GOD is Almighty, Most Wise.”

[At-Tawbah, 9:71]

“And He it is who causes gardens to grow, [both] trellised and untrellised, and palm trees and crops of different [kinds of] food and olives and pomegranates, similar and dissimilar. Eat of [each of] its fruit when it yields and give its due [zakah] on the day of its harvest. And be not excessive. Indeed, He does not like those who commit excess.”

[Al-An’am, 6:141]

Zakat al-fitr is paid by the head of the household on behalf of the family members. There is no fixed nisab for zakat al-fitr, but it is to paid by the person who has one day’s meals and the members of his family on the eve of `Eid Al-Fitr. Zakat al-fitr must be paid by the person who witnesses part of the month of Ramadan and part of the month of Shawwal. The amount of zakat al-fitr is two qadahs (an old measure) of rice or wheat or other usual food known in the area or their equivalent.

The evidence of the above is the hadith recorded in the two authentic books of Hadith (namely Al-Bukhari and Muslim), and reported by Ibn `Umar (may Allah be pleased with him): “The Messenger of Allah (may peace and blessings be upon him) prescribed zakat al-fitr as one saa` (an old measurement) of dates or wheat on every person whether male or female from among the Muslims.” In another authentic hadith, the Messenger of Allah is reported to have ordered that zakat al-fitr be paid out before going to the `Eid Prayer.

Establishment of Zakat (plural) did not start with new Muslims from Arabia or after the establishment of the Islamic state during the time of Prophet Muhammad. (pbuh) The obligation to pay Zakat has always existed and has remained a duty ordained by God.

Zakat has always been payable in the past as confirmed by the Quran.

By Prophet Jesus (mpbu)
“And He has made me blessed wherever I am and has enjoined upon me prayer and zakah as long as I remain alive”
[Maryam, 19:31]

Prophet Ishmael (mpbu) ordained on his people to give Zakat
“And mention in the Book, Ishmael. Indeed, he was true to his promise, and he was a messenger and a prophet.
And he used to enjoin on his people prayer and zakah and was to his Lord pleasing.”
[Maryam, 19:54-55]

Children of Israel
And [recall] when We took the covenant from the Children of Israel, [enjoining upon them], “Do not worship except Allah ; and to parents do good and to relatives, orphans, and the needy. And speak to people good [words] and establish prayer and give zakah.” Then you turned away, except a few of you, and you were refusing.
[Al-Baqarah, 2:83]

Prophet Abraham, Prophet Isaac, Prophet Jacob (mpbut)
“And We gave him Isaac and Jacob in addition, and all [of them] We made righteous.
And We made them leaders guiding by Our command. And We inspired to them the doing of good deeds, establishment of prayer, and giving of zakah; and they were worshippers of Us.”
[Al-Anbya, 21:73]

To the Jews (referenced as ‘hadu’ in 4:160)
“But those firm in knowledge among them and the believers believe in what has been revealed to you, [O Muhammad], and what was revealed before you. And the establishers of prayer [especially] and the givers of zakah and the believers in Allah and the Last Day – those We will give a great reward.”
[An-Nisa, 4:162]

People of the Scripture
“Nor did those who were given the Scripture become divided until after there had come to them clear evidence.
And they were not commanded except to worship Allah, [being] sincere to Him in religion, inclining to truth, and to establish prayer and to give zakah. And that is the correct religion.”

[Al-Bayyinah, 98:4-5]

Zakat is payable at 2.5% of the wealth one possesses above the nisab. Nisab, which is equal to 3 ounces of gold, is the minimum amount of wealth one must have before they are liable to pay zakat. As of May 29, 2017, nisab is estimated to be $3,587.79. Zakat is liable on gold, silver, cash, savings, investments, rent income, business merchandise and profits, shares, securities and bonds. Zakat is not paid on wealth used for debt repayment of living expenses such as clothing, food, housing, transportation, education, etc.