Do I pay zakat on gold bars and coins?
Yes, you pay zakat on gold bars and coins, and all scholars agree on this. Bullion is stored wealth, not jewelry you wear. If your gold, alone or with your cash and other zakatable assets, reaches the nisab for a full lunar year, you pay 2.5% of its market value.
Why there's no debate here
Scholars differ about gold jewelry that a woman wears, but gold bars, bullion coins and gold kept in a vault are a different case. They are savings in their purest form, and the Quran warns strongly against hoarding gold and silver without giving what is due:
The Prophet ﷺ also described how wealth whose zakat was not paid will come back to its owner on the Day of Resurrection as a punishment (Sahih al-Bukhari 1403). Paying zakat is what makes your gold clean savings rather than hoarded wealth.
The nisab for gold
The Prophet ﷺ set the gold nisab at 20 dinars, with zakat due after a full year (Sunan Abi Dawud 1573). Today that is usually given as about 85 grams of gold. In practice:
- Gold alone: if you own 85 g or more, zakat is due.
- Gold plus cash: most scholars combine gold with your cash, savings and other zakatable wealth. Many then use the lower silver nisab (about 595 g of silver) for the total, which is more generous to the poor.
See How much money do I need before I have to pay zakat?
How to value your bars and coins
- Use the gold price on your zakat date, not what you paid.
- Count the pure gold. 22-carat coins such as Sovereigns or Krugerrands weigh more than the pure gold they contain; the mint states the fine gold content.
- Collector coins worth more than their gold can be valued at what you could sell them for, if you hold them to sell.
- Gold held through a dealer's vault or a digital gold account still counts, as long as it is yours.
Then add it to your other assets and pay 2.5% of the total. See How do I calculate my zakat?
Paying from gold or from cash
You don't have to cut a piece off a bar. Scholars allow you to pay the equivalent value in money, which is far more useful to the people receiving it. If you also own gold jewelry, that has its own discussion: see Do I pay zakat on gold jewelry I wear?
- Gold bars and bullion coins are always zakatable; scholars agree.
- Nisab for gold is about 85 g; it is usually combined with cash.
- Value the pure gold at the market price on your zakat date.
- Pay 2.5%, usually in cash rather than in gold.
People also ask
Does charity protect you from calamity?
Yes, charity is a means of Allah's protection and mercy in Islam, but not a guarantee. What the Quran and authentic hadith actually say.
Read the full answer →Can I pay zakat for my parent who died?
Yes, a Muslim parent's unpaid zakat is treated as a debt paid from the estate, and children may pay it too. See what each school of law says.
Read the full answer →Do I pay zakat on stock options or RSUs?
You pay zakat on RSUs once they vest, like other shares. Unvested RSUs and unexercised stock options are generally not zakatable yet.
Read the full answer →Can I pay zakat online or through an app?
Yes, you can pay zakat online or through an app; the charity acts as your agent. Check its zakat policy, fees, registration and receipts.
Read the full answer →Can I give zakat to a friend in need?
Yes, you can give zakat to a friend in need if they're poor, needy or in unpayable debt. You don't have to tell them it's zakat. Here's what to check.
Read the full answer →