What Is Zakat? Conditions, Nisab and Who Receives It (2026)

The short answer to what is Zakat is this: a Muslim considered wealthy gives one fortieth of their wealth to those in need once a year has passed over a certain amount of savings (nisab).

But how much is the nisab, which assets count, and how and to whom does someone living in Austria give their Zakat? In this guide you will find it all, in plain language, step by step.

What Is Zakat? A Short Definition

Literally, Zakat means growth, blessing and purification.

As a religious term, Zakat is when a Muslim who owns wealth reaching the nisab gives a certain portion of it to those specified in the Qur’an, without expecting anything in return and as their property.

Zakat is not a favour or voluntary help but an act of worship in which the needy have a right within one’s wealth.

Voluntary help, on the other hand, falls under Sadaqah and Sadaqah Jariyah.

On Whom Is Zakat Obligatory? The Obligation of Zakat

In the Qur’an, Zakat is commanded together with prayer in many verses (for example al-Baqarah 2/43, 2/110).

It is accepted that it became obligatory in the second year after the Hijrah, and it is one of the five pillars of Islam.

According to the High Council of Religious Affairs, for Zakat to be obligatory a person must meet the following conditions:

• be a Muslim,
• be of sound mind and have reached puberty (aqil-baligh),
• own wealth reaching the nisab beyond their basic needs and annual debts,
• this wealth must be capable of growth (such as money, gold or trade goods),
• one lunar year (hawl) must have passed since the date the nisab was reached.

In short, receiving a salary does not on its own make Zakat due.

What matters is whether you have savings above the nisab left at the end of the year.

Zakat in the Qur’an and Sunnah

The word Zakat appears in the Qur’an in more than thirty places, mostly together with prayer.

In verse 103 of Surah at-Tawbah, the Prophet is commanded to take charity (Zakat) from the wealth of the believers and thereby purify and cleanse them.

Verses 34–35 of Surah at-Tawbah, meanwhile, clearly warn those who hoard gold and silver and do not spend it in the way of Allah.

The Prophet said that Islam is built on five pillars and counted giving Zakat as one of them (Bukhari, Iman, 1; Muslim, Iman, 19–22).

That is why Zakat is not an optional good deed but a fundamental act of worship like prayer and fasting.

The Conditions of Zakat: Nisab, Hawl and Basic Needs

What is the nisab, and how much is it in 2026?

The nisab is the minimum savings threshold at which a person is considered “wealthy” for Zakat purposes.

Diyanet (Turkish Presidency of Religious Affairs) takes the value of 80,18 grams of gold as the nisab for money and gold.

Its euro equivalent changes every day with the gold price. So instead of a fixed figure, use the price per gram of gold on the day of your calculation.

Hawl: The condition of one lunar year

On the day your savings reach the nisab, your Zakat year begins.

If after one lunar (Hijri) year, roughly 354 days, your savings are still above the nisab, Zakat is due.

According to the High Council of Religious Affairs, increases and decreases during the year are disregarded; salaries and income added during the year are counted at the end of the year together with existing savings.

Basic needs and debts are deducted

The home you live in, the car you use, household goods, clothing and work tools are considered basic needs and are not subject to Zakat.

Debts you must pay within a year are also deducted from your savings.

For a step-by-step calculation in euros and example scenarios, see our guide to calculating Zakat in Austria.

Which Assets Are Subject to Zakat?

Zakatable assets fall into four main groups. For someone living in Austria, the most common are:

Agricultural produce (ushr) and livestock have separate rulings; if you farm in Austria, consult an imam or religious scholar.

Diyanet has reservations about crypto assets; you can find details in the crypto section of our Zakat calculation article.

How Is Zakat Calculated? The One-Fortieth Rule

The calculation is actually simple:

1. On the day your Zakat year is completed, add up the euro value of all your cash, bank balances, gold, shares and trade goods.
2. Subtract your debts due within a year.
3. If the remaining amount is above the nisab, divide the whole amount by 40 (or multiply it by 2,5%).

Who Can Receive Zakat? (Summary)

The Qur’an itself determines who receives Zakat. Verse 60 of Surah at-Tawbah lists eight categories:

• the poor and the destitute (those who have nothing),
• officials appointed to collect Zakat,
• those whose hearts are to be reconciled to Islam,
• slaves seeking to gain their freedom,
• those in debt,
• those in the cause of Allah,
• stranded travellers.

Zakat is not given to parents, grandparents, children, grandchildren or a spouse; looking after them is already your responsibility.

We cover the eight categories in detail, who cannot receive Zakat and sending Zakat abroad in our article who can receive Zakat.

When Is Zakat Given? Does It Have to Be in Ramadan?

The time for Zakat is the day your Zakat year is completed. It does not have to be given in Ramadan.

Many people prefer Ramadan, when rewards are multiplied. In 2027, the first day of Ramadan is 8 February 2027.

Giving Zakat in advance, before the year is complete, is permissible according to the Hanafi school; you can also give it in instalments during the year.

Once the year is complete, Zakat should not be delayed unnecessarily, because it is the right of the person in need.

For other obligations specific to Ramadan, see our Fitrah 2027 Austria guide and Ramadan 2027 donation guide.

The Difference Between Zakat, Fitrah and Sadaqah

You can give your Fitrah on the online Fitrah donation page and your voluntary help on the Sadaqah donation page.

Zakat for People Living in Austria: Practical Information

Whether you live in Vienna, Innsbruck, Linz, Salzburg, Graz or Vorarlberg, the rulings of Zakat are the same. But some local details matter in the calculation:

• Currency is the euro: do your calculation in euros and find the nisab using the euro price of a gram of gold.
• Sparbuch and Bausparvertrag: savings held in savings accounts are included in Zakat.
• Savings in Türkiye: convert your gold and Turkish lira accounts in Türkiye into euros and include them in the same calculation.
• Loans (Kredit) and instalments: for a home loan, only the instalments due in the coming year are deducted; as there are differing views on this, seek advice if you are unsure.
• Keep track of the date: note once the Hijri date on which your Zakat year began, and calculate on the same day each year.

The official representative body of Muslims in Austria, IGGÖ (Islamische Glaubensgemeinschaft in Österreich), and the fatwas of Diyanet’s High Council of Religious Affairs are reliable points of reference for your questions.

If you are curious about the tax status of your donations, see our article are donations tax-deductible in Austria?.

Information for your city: Zakat and Qurbani donations from Vienna · Zakat from Innsbruck and Tyrol.

How Do You Give Zakat Online?

You can give your Zakat yourself to a person in need whom you know, or appoint an organisation you trust as your proxy.

At Austria Yetim Eli, the process works like this:

1. Open the Zakat donation page.
2. Choose 20, 50, 100, 200 or 500 €, or enter the amount you have calculated.
3. Add it to your basket; if you wish, put other donations such as Fitrah or orphan sponsorship in the same basket.
4. Pay by Card / Online (Visa, Mastercard, Apple Pay, Google Pay, EPS) or PayPal.
5. You receive a thank-you email; once the payment is confirmed, your donation receipt is sent to your email.

If you prefer a bank transfer, you can use our bank accounts and write “Zakat” in the payment reference.

For all the steps, common mistakes and the intention of proxy, read our guide to giving Zakat online.

Common Misconceptions About Zakat

• “Zakat is only paid on the portion above the nisab.” Wrong. If the nisab is exceeded, 2,5% of the entire savings is given.
• “Zakat is only given in Ramadan.” Wrong. The time is the day the person’s Zakat year is completed.
• “No Zakat is due on gold jewellery.” According to the Hanafi view that Diyanet follows, gold jewellery is also subject to Zakat.
• “I can have a mosque or a well built with Zakat.” According to Diyanet, Zakat must be given to a person in need as their property; it cannot be spent on charitable works such as mosques, wells or schools.
• “If I have a home and a car, I must pay Zakat.” Wrong. The home you live in and the car you use are basic needs and are not counted.
• “I pay the Zakat on my wife’s gold and add it to my savings.” Each spouse is responsible for their own wealth; the calculation is made separately for each person. With your spouse’s permission, you may pay their Zakat on their behalf.

An Annual Zakat Plan: Get Organised in 4 Steps

To fulfil your Zakat easily every year, you can set up a simple routine:

1. Set a date: record in your calendar the Hijri date on which your savings reached the nisab, or a fixed day of your choice (e.g. 1 Ramadan).
2. Keep a list: gather your bank accounts, gold, investment portfolio and debts on a single page.
3. Calculate: find the nisab using that day’s price per gram of gold and set aside 2,5% of your net savings.
4. Give without delay: pay the amount online on the day you set it aside; add your donation receipt to your records.

If you wish, you can also spread your Zakat over the year and give it in small monthly parts; it is enough to check the total at the end of the year.

The Social and Spiritual Benefits of Zakat

Zakat purifies wealth and the heart from miserliness.

It builds a bridge between rich and poor and prevents wealth from circulating only among one group.

Today, from Africa to Yemen and from Palestine to Afghanistan, millions of families have no access to basic food and clean water. Zakat that is correctly calculated and given on time makes a tangible difference in these families’ lives.

Another benefit of Zakat is the relief it brings the giver: a Zakat that has been calculated and given on time brings peace of mind that the remaining wealth is halal and blessed.

Alongside Zakat, you can also voluntarily support areas such as Palestine emergency aid or orphan projects.

You can see the regions where we work on the countries we work in page.

Sources: High Council of Religious Affairs — What is Zakat? · High Council of Religious Affairs — Zakat on income such as salaries and wages · Kur’an Yolu Tefsiri — at-Tawbah 9/60 · IGGÖ