Islamic Finance
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beginner
Islamic Practices
What is Zakat in Islam — who must pay it, how much, and why?
Zakat (Arabic: زكاة — purification, growth) is the obligatory annual wealth tax that is the Third Pillar of Islam. Every Muslim who possesses wealth above the *nisab* (minimum threshold, approximately the value of 85 grams of gold) must give 2.5% of that wealth to the eight designated categories of recipients. Zakat is not charity — it is a precisely defined divine obligation. It purifies the wealth that remains, strengthens social solidarity, and reduces inequality. It is one of the most sophisticated built-in wealth redistribution systems in any religious tradition.