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 faithfully 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 intent of trading or investment.

2. Their value is measurable in fiat currency.

3. They meet nisab and hawl conditions.