Understanding Zakat Application

Zakat is one of the five pillars of Islam - a powerful tool for justice, equity, and redistribution. But in practice, it can be confusing. Why? Because the rules for zakat change depending on what you own.

There isn’t a one-size-fits-all formula. Each asset - whether it’s gold, livestock, a rental property, or a company - has its own zakat rules.
This makes paying zakat a lot more complex than people often realize. 

Below is a simple guide that breaks down the zakat criteria across common asset types, helping you understand the key differences - and why they matter.

What about Crypto?

Most contemporary scholars - including fatwas from AAOIFI- agree that cryptocurrencies are zakatable if:

1. They are owned with the intent of trading or investment.

2. Their value is measurable in fiat currency.

3. They meet nisab and hawl conditions.