Zakat on gold is calculated at 2.5% of the gold's eligible market value in pounds. Whether gold is eligible depends on your madhab and how the gold is used: all gold is zakatable for Hanafi Muslims, while worn jewellery is generally exempt for those following the Maliki, Shafi'i, or Hanbali madhabs.
Key facts
- Rate: 2.5% of eligible gold value (market value in £ on calculation date)
- Nisab: 87.48 grams of pure (24ct) gold
- Hanafi: ALL gold — including worn jewellery — is zakatable
- Maliki / Shafi'i / Hanbali: worn jewellery is exempt; investment/stored gold is zakatable
- Karat affects purity: 24ct = 100%, 22ct = 91.7%, 21ct = 87.5%, 18ct = 75%
- Gold ETFs and gold funds are treated as physical gold and are zakatable
- Price source: LBMA spot price (24ct per gram) via metals.dev
Is Gold Zakatable?
Yes — gold is explicitly mentioned as a zakatable asset in the Quran and the hadith. All four madhabs agree that gold held as investment or savings is zakatable. The only area of disagreement is gold jewellery that is worn for personal adornment.
Gold in its various forms — bars, coins, jewellery, and ETF holdings — is all potentially zakatable. The nisab for gold is 87.48 grams of pure gold. Any gold you own must be converted to its 24ct equivalent weight before being compared against the nisab.
Gold Karat and Purity
Gold purity is measured in karats. 24 karat gold is 100% pure. Lower karat gold contains alloy metals (typically copper, silver, or zinc). To calculate the zakatable value, you multiply the physical weight by the purity factor, then by the 24ct spot price per gram.
| Karat | Purity | Formula | Example: 100g |
|---|---|---|---|
| 24ct | 100% | weight × 1.000 | 100.0g pure |
| 22ct | 91.7% | weight × 0.917 | 91.7g pure |
| 21ct | 87.5% | weight × 0.875 | 87.5g pure |
| 18ct | 75.0% | weight × 0.750 | 75.0g pure |
The Madhab Difference on Jewellery
This is the single most consequential fiqh difference between the madhabs for most UK Muslim households, where gold jewellery often represents a significant portion of family wealth.
| Gold Type | Hanafi | Maliki | Shafi'i | Hanbali |
|---|---|---|---|---|
| Worn jewellery | Zakatable | Exempt | Exempt | Exempt |
| Stored / investment gold | Zakatable | Zakatable | Zakatable | Zakatable |
| Gold coins | Zakatable | Zakatable | Zakatable | Zakatable |
| Gold ETFs / funds | Zakatable | Zakatable | Zakatable | Zakatable |
For Hanafi Muslims, the ruling is clear: all gold, including jewellery worn daily, is subject to zakat if the total exceeds the gold nisab. This is the position of the majority of scholars from the Hanafi school, based on the hadith that the Prophet ﷺ saw a woman wearing gold bracelets and asked if she paid zakat on them.
For Maliki, Shafi'i, and Hanbali Muslims, the majority position is that gold jewellery worn for personal adornment is exempt from zakat. This is based on the position that jewellery in regular use is not a form of hoarded wealth (kanz) but a personal item. See the jewellery guide for a fuller discussion.
The Calculation Formula
pure_weight_g = actual_weight_g × karat_purity_factor
gold_value_£ = pure_weight_g × 24ct_spot_price_per_gram
(repeat for each gold item)
total_eligible_gold_£ = sum of zakatable items
zakat_due = total_eligible_gold_£ × 0.025
Note that the nisab check applies to your total net zakatable wealth across all categories — not just gold alone. Your cash, investments, and other assets are added together before the nisab comparison is made.
A Worked Example
Scenario: Hanafi Muslim with 22ct jewellery
Gold weight: 120g (22ct wedding jewellery and bangles)
Purity factor: 0.917 (22ct)
Pure gold weight: 120 × 0.917 = 110.04g
Assume 24ct spot price: £78.50/g
Gold value: 110.04 × £78.50 = £8,638.14
Zakat on this gold (Hanafi): £8,638.14 × 2.5% = £215.95
Plus zakat on any other zakatable wealth (cash, savings, etc.) above the nisab threshold.