The Ultimate Guide to Calculating Zakat on Gold in Canada (2026)

Are you planning on taking out zakat but unsure the exact amount due on you according to the amount of gold you have? Do you have an inner voice always nagging that usual amount of Zakat that you take out is not accurate? If you feel the same, then this guide can bring you a sigh of relief, as we are about to unfold the complete guide to calcula te Zakata on gold in Canada 2026.
Let’s get to it!

What is Zakat on Gold? Understanding Your Religious Duty

Zakat being one of the five pillars of Islam is of utmost importance. But it is way more than the religious obligation, it is a way of sharing one’s wealth with those who need it the most. It’s also about giving back to the society from the share of financial blessings that Allah has blessed you with. To whichever Fiqh one belongs to, zakat paves the way to an ideal Islamic welfare society where no one goes to bed hungry and the eligible ones share the part of their wealth with their fellows.
In islam our deeds are dependent on the intention (Niyyah) with which we perform a particular task or religious obligation like namaz, roza, zakat, etc. but it is still of vital importance to research, understand and know about the particular ways through which a religious duty is supposed to be performed in our religion. 

Understanding the core principles of Zakat: Nisab and Haul

When it comes to Zakat on gold, it’s not just about what you own, but how and why you own it. Islam considers gold as a form of wealth that can grow and preserve value over time. You can own gold in whichever form like gold bars, coins, or jewelry etc. it is obligatory to pay zakat on it if it meets a set criteria of nisab and haul.
Let’s discuss both these terms in detail in the next section

The Two Golden Rules: Nisab and Haul Explained

As we discussed, irrespective of the form of gold that you acquire you are supposed to pay zakat if it meets a certain criteria and that criteria is nisab and haul. Basically this criteria is dependent on the minimum quantity and time period for which one has the gold. 

Let’s discuss these terms here in detail to make it simpler for you

Nisab

Nisab is the minimum threshold of gold (or silver) that you must own for zakat to become obligatory.  The Nisab in canadian dollar will be as follow:
Gold: Nisab is 87.48 grams. That is equivalent to 16,486 CAD as per current rates 
Siliver: Nisab is 612.36 grams. That is equivalent to 14,457 CAD as per current rates

The value of gold and silver fluctuates and their value varies according to the global and Canadian market rates. To be informed about the updated rates of nisab is very important to calculate the due amount of zakat and to fulfil this significant religious obligation.

Haul

Haul refers to the time period of the ownership of the gold; it is one complete year in the Lunar Calendar (Hijri). For zakat becoming obligatory for you, you must own the amount of gold equal to or above nisab for at least one lunar year.  

Your Zakat becomes due only when your wealth exceeds the Nisab (the minimum threshold) and has been in your possession for one full lunar year (Haul). For Canadian Muslims, this means tracking your wealth for one Hijri year.

What Gold is Zakatable? Your Quick-Eligibility Checklist

As of now we have established the fact that nisab and haul are two factors that determine whether it is obligatory to give out zakat on the wealth you own or not. But when it comes to Gold Jewelry, Silver, Cash Savings, Investments or Ornaments etc. one has, sometimes it becomes a little confusing to check whether it is zakatable or not. For that we have made a simple table that can help you determine if your wealth is zakatable or not

How to Calculate Zakat on Gold in 5 Simple Steps (Using CAD)

We hope that the above table has had things quite simple and clearer for you to understand your eligibility for paying zakat. But now the question arises how should one calculate the exact amount of zakat to be paid in your Currency (CAD)?
But don’t worry, let us walk you through the step by step process of zakat calculation

• Step 1: Tally Your Zakatable Gold

Firstly, you obviously have to weigh all your zakatable gold, it could be in any form from coins to bars to unworn jewelry and ornaments. To be zakatable, the total amount of your gold should be equal to or more than the nisab

• Step 2: Determine the Purity and Calculate Its Value

The next step is to determine the purity of your gold. It is important to check the purity of gold to determine the value. We have devised a simple formula for you that can help you calculate the value of your gold according to its karats.

Use this formula:
Weight in grams × Current 24k gold price × Purity factor

Purity factors:

• 24k = 1
  
• 22k = 0.916
  
• 18k = 0.750
  

Example:
50g of 22k gold × (24k price) × 0.916 = CAD value.

• Step 3: Find the Current Nisab Threshold in Canadian Dollars

Now it’s time to find out the value of nisab that is the minimum threshold value for your gold to be zakatable. For that you just have to find a reliable source to find the current gold price in Canada. One thing that is super important here is the credibility of the source of this information. You can check out some reliable sources like the Bank of Canada website for current gold price in CAD. As of today the nisab is 87.48 gm.

• Step 4: Do You Meet the Nisab?

Now, it’s time to see whether your total zakatable gold value is equal to or greater than nisab. You need to compare your gold value with the minimum threshold that is nisab, if value of the gold is greater than or equal to nisab, its obligatory for you to take out zakat on your gold. 

• Step 5: Calculate 2.5% of Your Total Wealth

If after step 4 you find that the value of your zakatable gold is equal to or more than the value of nisab, you have to calculate the value of zakat that you need to take out according to your wealth. It is 2.5% of your total wealth.

Example:

If the value of your total zakatable gold is $10,000 CAD, your Zakat is $250 CAD

Zakat in Action: A Real-Life Canadian Calculation

Let us introduce you to Ahmed. He lives in Toronto and like most of us he is super confused about zakat calculation. Let’s look into his total wealth:

• 50g of 22k investment gold
• $5,000 CAD in his savings account
• No silver

We’ll walk through each step to calculate his Zakat in CAD. lets go:

• Step1: Tally the Zakatable Gold

For Ahmed it is 50g of 22k investment gold

• Step 2: Determine the Purity and Calculate Its Value

Ahmed has 50 g of 22 k gold, to find its value in Cad we will have to apply following formula:
Weight in grams × Current 24k gold price × Purity factor

Current price of 24 k gold per gram = $187.78 CAD
Purity factor for 22k gold is 22k = 0.916
Applying the formula:
= 50 × 187.78 × 0.9166667
= $8,606.58 CAD

Total Zakatable wealth

Gold value = $8,606.58
Cash savings = $5,000.00
Total = $8,606.58 + $5,000.00 = $13,606.58 CAD

• Step 3: Find the Current Nisab Threshold in Canadian Dollars
• Step 4: Do You Meet the Nisab?
• Step 5: Calculate 2.5% of Your Total Wealth
  

Gold vs. Silver Nisab: Which One Applies to Your Canadian Wealth?

According to most of the fiqh in Islam, if you have both gold and silver, then you must choose the Nisab that is most beneficial to the society.

This is why most of the scholars recommend choosing gold nisab in the current times to contribute better to the society with a fair and realistic zakat calculation. 

Zakat on Modern Wealth: Stocks, Crypto, and Other Assets in Canada

In modern times, holding wealth does not only refer to possessing gold, silver, cash or traditional investment, there are various new forms of wealth that were not traditionally there. These forms of wealth can also be zakatable if they satisfy the criteria of nisab and haul. If the investment has growth potential and liquidity, it is usually treated as Zakatable wealth. 

Scholars generally rule that these fall under Zakat:

• Stocks & ETFs:  Zakatable at market value
  
• Crypto: Zakatable when held as an asset
  
• Cash Savings: Zakatable
  
• RRSPs / TFSAs: Zakatable depending on asset type
  

Your Zakat on Gold Questions, Answered (FAQ)

Here are some frequently asked questions related to zakat, hopefully, their answers can help your confusion as well:

Common Zakat on Gold Mistakes (And How to Avoid Them)

• Mistake 1: Forgetting to include cash and savings in the total wealth calculation

The most common mistake is not to include the cash and savings you have while calculating your zakat. Forgetting this might also falsely show that you are not eligible while the reality is otherwise.

• Mistake 2: Miscalculating the purity of gold .

While calculating the value of your gold it’s significant to consider the purity factor as well. Ignoring it might end up in calculating the value of gold more than it actually is. E.g. assuming 18k is pure gold

• Mistake 3: Using the Gregorian calendar instead of the Lunar (Hijri) Calendar for the Haul.

Following the Georgian calendar for calculating haul is a very common mistake. While calculating zakat one always needs to consider that haul is always calculated according to the lunar year. 

Conclusion: Fulfill Your Zakat with Confidence and Ease

Calculating Zakat can be overwhelming sometimes but understanding Nisab, Haul, and your Zakatable assets can help you fulfill this important obligation of Islam.

By setting up an yearly reminder and following the five-step process above, you can easily calculate and pay your yearly zakat. As zakat is your way of giving back to the society and sharing your blessings with your brothers and sisters in faith.