How higher gold prices are affecting zakat calculations this Ramadan

Al JazeeraEN 6 min read 100% complete by Marium AliFebruary 26, 2026 at 07:39 AM

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long article 6 min

During Ramadan 2026, many Muslims are preparing to pay Zakat, a mandatory form of charity in Islam. Zakat is calculated annually as 2.5% of one's wealth, intended to purify wealth and aid the needy. This year, higher gold prices, nearly double what they were last Ramadan, are significantly impacting Zakat calculations. The increased price affects both the eligibility threshold (nisab), potentially exempting more individuals, and the amount owed by those with gold holdings, leading to larger charitable contributions. The nisab, the minimum wealth required to pay zakat, is now approximately $15,000, based on the current price of 85 grams of gold, a substantial increase from last year's $8,000. Zakat is obligatory for adult Muslims whose wealth exceeds this threshold.