Zakat on Gold 2026: Nisab, the 2.5% Rule, and Worked Examples in AED, SAR, and EGP
With 24K gold sitting at AED 509.82 per gram right now, a woman holding 90 grams of gold jewelry — a fairly modest collection by Gulf standards — is sitting on an asset worth over AED 45,000. Whether she owes Zakat on that depends on answers to three specific questions that most people get wrong at least once. Here's how to get them right.
What Is the Nisab and How Do You Calculate It Today
Nisab is the minimum threshold of wealth you must hold before Zakat becomes obligatory. For gold, the classical scholarly consensus sets the nisab at 85 grams of pure (24K) gold. That's the number you work from — not the weight of your jewelry, but its equivalent in pure gold content.
With 24K gold priced at AED 509.82 per gram today, the nisab in dirhams is:
85 grams × AED 509.82 = AED 43,334.70
In Saudi riyals, using the 24K price of SAR 520.58 per gram:
85 × SAR 520.58 = SAR 44,249.30
And in Egyptian pounds, at EGP 6,892.42 per gram for 24K:
85 × EGP 6,892.42 = EGP 585,855.70
Those figures change every day as the gold price moves, which is why you always calculate the nisab using the current price — not last year's number, not a rounded figure someone quoted you at the mosque.
Two conditions must be met before Zakat is due: your gold must meet or exceed the nisab in value, and you must have held it for a full lunar year (the hawl). If you bought gold in Ramadan 1447 and it's now Ramadan 1448, that clock has run. If you dipped below the nisab at any point during the year and came back up, most scholars say the hawl resets — though there's a minority view that only the end-of-year balance matters. Check with your local scholar if you're in that situation.
Which Gold Actually Counts — Jewelry, Bars, Coins
This is where it gets genuinely contested. There are two main scholarly positions:
Position 1 — All gold is zakatable. The Hanbali school and a number of contemporary scholars hold that any gold you own above the nisab is subject to Zakat, full stop. This includes gold jewelry you wear regularly.
Position 2 — Regularly worn jewelry is exempt. The Hanafi, Maliki, and Shafi'i schools traditionally exempt jewelry that is in active personal use — a wedding ring worn daily, a bracelet you never take off. Stored jewelry, heirloom pieces sitting in a safe, or jewelry bought primarily as an investment does not qualify for this exemption under any school.
Practically speaking: if you're in Egypt or Saudi Arabia and follow the predominant local madhab, regularly worn personal jewelry is often considered exempt. If you're following a more cautious approach — which many contemporary scholars recommend given the scale of gold wealth today — you include it all. When in doubt, paying Zakat on it is always the safer choice.
Gold bars (from makers like PAMP Suisse, Valcambi, or Emirates Gold), gold coins such as the South African Krugerrand, British Britannia, or Canadian Gold Maple Leaf, and any gold held in investment accounts all count unambiguously. No scholarly disagreement there.
For mixed-karat households — and most are — you convert everything to a pure gold equivalent before applying the nisab. More on this in the worked examples below.
The 2.5% Calculation — Step by Step
Once you've established that your gold meets the nisab and has completed the hawl, the math itself is straightforward. You pay 2.5% of the total current market value of your zakatable gold.
The formula:
Zakat due = weight in grams × (current price per gram for that karat) × 2.5%
Here's why you use the karat-specific price: your 21K necklace isn't worth the same per gram as a 24K bar. When you check the live prices, 21K gold is AED 446.09 per gram while 24K is AED 509.82. Applying the wrong price understates or overstates what you owe.
Some scholars say you use the buying (spot) price, others say the selling price — the difference is usually small, but using the current market rate for the karat you own is the most defensible approach.
Worked Examples in AED, SAR, and EGP
Example 1 — UAE resident with mixed jewelry (AED)
Fatima holds:
- 40 grams of 21K jewelry (worn occasionally, kept in a safe mostly)
- 20 grams of 18K jewelry (worn daily)
- 10 grams of 24K gold bar
She follows the cautious approach and includes all of it.
Step 1 — Convert to pure gold equivalent to check nisab:
- 40g × (21/24) = 35.00g pure
- 20g × (18/24) = 15.00g pure
- 10g × (24/24) = 10.00g pure
- Total pure gold: 60 grams — below 85g nisab
Fatima owes no Zakat this year. If she acquires another 30 grams of 21K gold (25g pure equivalent), she'll cross the threshold.
Example 2 — Saudi resident with substantial gold (SAR)
Noura holds 120 grams of 22K gold (mostly stored jewelry and a few pieces bought as investment).
Pure equivalent: 120 × (22/24) = 110 grams — above the 85g nisab. Hawl has passed.
Zakat calculation using today's 22K price of SAR 477.21 per gram:
120g × SAR 477.21 × 2.5% = SAR 1,431.63
That's what Noura owes — just over SAR 1,400. Not a devastating sum, but real money that needs to be distributed to eligible recipients.
Example 3 — Egyptian resident with gold savings (EGP)
Mahmoud has 50 grams of 21K gold bought as savings over several years, stored at home. He also has 30 grams of 18K gold (a gift he never wears).
Pure equivalent:
- 50g × (21/24) = 43.75g
- 30g × (18/24) = 22.50g
- Total: 66.25g pure — below 85g nisab.
No Zakat due. But if EGP keeps falling against the dollar and the nisab in pounds keeps rising, Mahmoud should re-check annually — the nisab in EGP today is already EGP 585,855, and his holdings are valued at roughly:
- 50 × EGP 6,030.86 (21K) = EGP 301,543
- 30 × EGP 5,169.31 (18K) = EGP 155,079
- Total: EGP 456,622 — below nisab in value terms too.
Both the gram-weight test and the value test confirm no obligation this year.
Frequently Asked Questions
Q: Does gold jewelry given as a wedding gift (mahr) count toward Zakat?
If the gold has been in your possession for a full lunar year and the total meets the nisab, most scholars say yes — mahr gold is your property and is treated the same as any other gold you own. The origin of the gift doesn't change the ownership.
Q: Can I pay Zakat on gold in cash instead of physical gold?
Yes, and this is the most common practice. You calculate the market value of your zakatable gold using the current price per gram for the relevant karat, multiply by 2.5%, and pay that amount in cash to eligible recipients. You don't need to hand over actual gold.
Q: What if my gold jewelry is mixed with other metals — do I weigh the whole piece?
You should only count the gold content, not the total piece weight. For stamped jewelry, the karat marking tells you the ratio: 18K is 75% gold, 21K is 87.5%, 22K is 91.67%, 24K is 99.9%. Multiply the piece weight by that ratio to get the pure gold content, then apply the relevant karat price.
Q: Is gold held in a bank savings account or gold ETF zakatable?
Yes. If you own a gold-backed instrument where you are the beneficial owner of actual gold, it counts toward your nisab and Zakat calculation. Use the current spot price to value it. If the product is purely speculative with no underlying physical gold, the ruling may differ — consult a scholar familiar with Islamic finance instruments.
Q: Does the nisab reset if gold prices drop mid-year?
If your gold's value drops below the nisab during the hawl year and then recovers, most scholars in the Hanafi tradition say the hawl resets to the date it recovered. The Maliki and Shafi'i positions are more lenient, looking only at the beginning and end of the year. Given the volatility in gold prices, this is a practical question worth asking your local scholar directly.
Gold prices shift every session, and your Zakat obligation shifts with them. The nisab you calculated six months ago is not the nisab today — with 24K at AED 509.82 per gram and the EGP rate moving as it does, the difference can be meaningful. Visit DahabPulse.com to check the latest gold prices per gram across all karats and currencies, and use the built-in gold calculator to run your own Zakat figures in seconds before your hawl date arrives.