Educational disclaimer: This article is intended for educational purposes. It does not constitute a fatwa or a personal legal opinion. The amounts displayed in the app are estimates based on real-time market data and do not replace the opinion of a qualified scholar for your particular situation.
Before we begin
Zakat is the third pillar of Islam. It is not a voluntary charity — it is a legal obligation (fard) for every Muslim who meets the conditions. HalalStack automates the calculation, but before trusting a figure displayed by an app, it is useful to understand the five parameters that produce it.
Fundamental 1 — The nisab: the trigger threshold
Fiqh term: nisab (literally "minimum quota").
The nisab is the wealth threshold below which Zakat is not due. It is defined in relation to two precious metals:
- 85 grams of pure gold (current spot value)
- 595 grams of pure silver (current spot value)
These two thresholds are not equivalent in euros — in 2026, gold and silver have very different prices, which creates a significant gap between the two. This is a point of practical divergence among scholars.
Hanafi position (HalalStack default): the silver nisab (595g) is the reference threshold for liquid assets (cash, cryptos, stocks). The reason: the silver nisab is lower, which includes more people in the obligation — a principle of caution (ihtiyat) and of extending the benefit to those in need.
Divergence: many contemporary scholars (including those of AAOIFI SS35) recommend the gold nisab (85g) for wealth invested in stocks and modern financial assets, on the grounds that silver has lost its original monetary function. HalalStack displays both values and applies the silver nisab by default, configurable.
In the app: the nisab is recalculated daily from the XAU and XAG spot prices. If your zakatable wealth falls below the threshold, the app informs you and suspends the hawl counter.
Fundamental 2 — The hawl: the lunar year
Fiqh term: hawl (literally "the turn", the rotation of a year).
Zakat is due only if you have continuously held the nisab for a complete lunar year. One lunar year = 354.4 days (not 365).
Precise rule: if at any point during the hawl your zakatable wealth falls below the nisab, the counter resets to zero. The hawl restarts on the date you cross the threshold again.
Important exception — harvests and produce of the land: they are zakatable at each harvest, without a hawl condition (2.5% to 10% depending on the irrigation method). This case does not directly concern financial assets.
In the app: HalalStack tracks the date on which your zakatable portfolio first exceeded the nisab. A badge and a progress bar indicate the advancement of the hawl. An alert is sent 30 days before the due date.
Fundamental 3 — The rate: 2.5%
The Zakat rate on financial assets and accumulated wealth is 2.5% of total zakatable wealth — not of income, not of profit, but of the total value held at the time of the hawl.
This rate is established by the Sunnah (Abu Dawud 1574 — Sahih according to Al-Albani) and is the subject of consensus among all the madhabs on assets of this category (gold, silver, currency, trade goods).
Concrete example: at the time of your hawl you hold €20,000 in halal crypto + €5,000 in cash + €3,000 in stocks. Total zakatable = €28,000. Zakat due = 28,000 × 2.5% = €700.
The purification (tatheer) due on haram income included in dividends is a calculation distinct from the 2.5% — see the dedicated article.
Fundamental 4 — The personal conditions
Zakat is obligatory for any person who simultaneously meets these five conditions:
- Being Muslim: Zakat is an intra-community obligation.
- Being free (historically): a classical condition, with no direct contemporary application.
- Being an adult (baaligh): the minor child is exempt. The four madhabs agree on this point, although the Hanafi is the strictest on the definition of legal capacity.
- Being of sound mind: exemption for recognized mental incapacity.
- Possessing the nisab throughout the complete hawl: the central wealth condition.
Hanafi nuance on debts: "real" debts (rent owed, overdue bills) may be deducted from zakatable wealth before calculating the nisab threshold. Mortgage debts on a primary residence are the subject of an active debate among contemporary scholars — HalalStack allows these deductions to be entered manually.
Fundamental 5 — Zakatable assets (and those that are not)
Not all assets are zakatable. The classical logic distinguishes assets "in circulation" (intended to grow or be used) from assets "for use".
| Asset | Zakatable | Rate | Note |
|---|---|---|---|
| Cash (current account, savings) | Yes | 2.5% | Total |
| Physical gold | Yes | 2.5% | On spot value |
| Physical silver | Yes | 2.5% | On spot value |
| Halal cryptos (BTC, ETH…) | Yes | 2.5% | On spot value at the hawl |
| Stocks (active trader) | Yes | 2.5% | On total value |
| Stocks (long-term investor) | Yes | 2.5% | Total value (majority opinion) or pro-rata share of liquid assets (AAOIFI/OIC method) |
| ETF | Partial | 2.5% | Depending on composition |
| Rental real estate | Partial | 2.5% | On net accumulated rents |
| Primary residence | No | 0% | Personal use — exempt |
| Car, furniture | No | 0% | Personal use — exempt |
| Professional machinery | No | 0% | Work tool — exempt |
| Customer receivables (business) | Yes if recoverable | 2.5% | Depending on probability of recovery |
The case of stocks in detail: the distinction "active trader" vs "long-term investor" comes from the OIC Fiqh Academy (Resolution No. 1, 1984). An active trader pays Zakat on the total value of their positions as if they held the underlying assets. For the passive investor (buy and hold), two approaches coexist among contemporary scholars: the majority opinion applies the 2.5% rate to the total market value of the stocks; a second approach, adopted notably by AAOIFI (SS35) and the OIC, limits the zakatable base to the pro-rata share of the company's liquid assets relative to the holding. HalalStack allows this second method to be calculated via companies' fundamental data, but does not settle between the two — the choice rests with the user after consulting a scholar.
What this article does not do
- It does not deal with Zakat al-fitr (the Zakat at the end of Ramadan) — distinct rules, unrelated to the hawl or the financial nisab.
- It does not cover Zakat on harvests, livestock, or mines — categories outside HalalStack's scope.
- It does not settle the gold nisab vs silver nisab debate for mixed wealth — the app lets you configure your choice.
- It does not calculate the French tax impact of Zakat (66% deductibility under art. 200 CGI via approved associations) — a topic covered in a separate article.
Sources
- AAOIFI Sharia Standard No. 35 (Zakat), sections 2-6 — conditions, nisab, hawl, zakatable assets
- Abu Dawud 1574 (grade: Sahih, authenticated by Al-Albani) — rate on minted silver
- OIC Fiqh Academy, Resolution No. 1 (1984) — Zakat on modern financial assets (stocks, funds)
- Ibn Abidin (Hanafi), Radd al-Muhtar, vol. 2 — Zakat conditions, treatment of debts
- Mufti Taqi Usmani, Contemporary Fatawa, 2000 — silver vs gold nisab, contemporary debate
- Musaffa Academy — Gold vs Silver Nisab Explained
- Sunnah.com — Sunan Abi Dawud 1574