Do I need to make niyyah when paying zakat?

Why the intention matters

The Prophet ﷺ said that actions are judged by intentions, and every person gets what they intended (Sahih al-Bukhari 1, Sahih Muslim 1907). Giving money can be a gift, a loan, a payment or charity. The only thing that makes it zakat is that you meant it as zakat, for the sake of Allah:

This is also why money paid for another reason, like tax, doesn't become zakat. See Can I count my taxes as zakat?

When to make the intention

• When you give it: the simplest moment is as you hand over the money or press "pay".
• When you set it aside: Hanafi and other scholars say it is enough to intend it when you separate the zakat money from your other money, even if you hand it over later.
• When you appoint someone: if a charity or friend pays for you, your intention when you give them the money counts.

You can't decide much later that a past gift was zakat. Scholars mostly require the intention at or before the time of giving.

What the intention is not

There is no special formula in Arabic or English. A thought like "this is my zakat for this year" is enough. You also don't need to tell the poor person; many people prefer to call it a gift so the receiver doesn't feel embarrassed. See Do I have to tell the person it's zakat?

Keep it sincere

Niyyah is also about why you give. Zakat is for Allah, not for praise. That's one reason many scholars encourage giving quietly. See Should I give charity secretly or openly?