Explanation

Zakat is 2.5% of wealth held for one lunar year above nisab (minimum threshold). Nisab is approximately 85 grams of gold or 595 grams of silver equivalent.

Zakatable wealth includes: cash, gold, silver, business inventory, agricultural produce, livestock. Not zakatable: personal home, car, clothes, furniture.

Recipients (8 categories in Quran): the poor, the needy, zakat collectors, those whose hearts need softening, freeing slaves, debtors, in the way of Allah, travelers in need.