Many Muslims live in Canada, and the Muslim population is snowballing. This brings the religious obligations of Muslims to light. No matter where Muslims live, they should fulfil religious commitments no matter what. All Canadian Muslims who know the importance of Zakat but lack the basic knowledge, don’t worry—we will guide you. Zakat is one of the most essential pillars of Islam. All affluent Muslims must pay zakat regularly. However, understanding the complexities of Zakat, who can pay Zakat, how much to pay, and where to pay Zakat in Canada is challenging. So here we are to make it easy for you. Read this guide to understand Zakat in Canada completely.
What is Zakat?
Zakat is an obligation in Islam. All Muslims who qualify for the Zakat criteria pay the charity annually. Muslim adults who have excessive wealth are obliged to pay Zakat. Now, you must be wondering what the concept of Zakat is in Islam. Who can pay Zakat, etc. Well, anyone whose wealth and assets exceed the Nisab value according to the Islamic year. It is a concept in Islam by which wealthy Muslims share their wealth with the needy. In Islam, the word “zakat” means “to purify”. It means that by sharing your wealth with the underprivileged and less fortunate, you will purify it. In the Quran, Allah says:
“Take from their wealth so that you might purify and sanctify them” (9:103)
If Allah has blessed you with wealth and you live a good life, you must share it with your Muslim brothers and sisters. It is believed that sharing or giving away some of your wealth does not lessen it. In fact, it purifies wealth from greed and miserliness. So, one should pay zakat to tackle the rising economic inequality in society. In Islam, Zakat is called the right of the poor over the wealthy. Zakat helps people experiencing poverty in several ways. Zakat plays a significant role in improving the lifestyle of deserving people and supporting them in fulfilling their basic needs. Another basic concept in Islam that every Muslim should know is the difference between halal and haram. Read our guide on what does halal mean to understand it.
How to Calculate Zakat in Canada?
Now, you know zakat is an obligation a qualifying Muslim should fulfil. Many of you must consider how you would know whether you are obliged to pay Zakat. Thinking this is acceptable because not every Muslim is obliged to pay it. It is only for Muslims with a certain amount of wealth and assets. Calculating zakat might seem complicated, but it is not. Whether in Canada or anywhere, you should know how to calculate zakat. Calculating zakat is a breeze. Let us guide you through this.
Zakat applies to both cash and assets. You should pay zakat if you have gold, silver, money, any savings, property, or business assets. The Zakat amount is flexible as it depends on your wealth and assets. All you need to do is calculate the value of your net assets. Once you have that figure, match it with the Nisab threshold. If your net asset amount equals or exceeds this threshold, you must pay Zakat. You can check the Nisab threshold online. You need to check Canada’s Nisab threshold to calculate zakat in Canada. For more information, read the table below.
| Assets | Weight | Price | Nisab Threshold |
| Silver | 612.36 grams | $1.09 | $667.47 |
| Gold | 87.48 grams | $97.72 | $8548.54 |
If this is difficult, you can use Zakat in Canada’s online calculators. These calculators give you accurate readings. This way, you will know whether you should pay for zakat this year. If your net asset worth is less than the zakat threshold, you are not obliged to pay for zakat. It is a general rule that a Muslim should pay 2.5% zakat on gold.
Where to Pay Zakat?
Finding people who need Zakat can be difficult if you live in Canada. Have you calculated your net assets? Is it above or equal to the Nisab value? If so, you must look for where to pay for Zakat in Canada. Everyone who is in search of this should read ahead. Any eligible Muslim can pay their zakat to the following:
- To poor people who lack the necessities of life.
- Needy people who hardly make ends meet.
- Authorised zakat collectors who distribute zakat amounts to deserving individuals.
- New Muslims who have converted to Islam and are needy.
- Freeing someone who has been kept as an enslaved person.
- You can pay off someone’s debt with the zakat amount.
- You can spend your zakat in the path of Allah.
- Someone who is a refugee and needs money to survive.
Zakat Organizations
Many organisations in Canada collect zakat and pay it to worthy people. Zakat can also be donated to humanitarian causes. Some reputable organisations in Canada collect zakat are:
- Hidaya Foundation
- Islamic Relief Canada
- Human Appeal Canada
- ICNA Relief Canada
- Penny Appeal Canada
- Transparent Hands
- National Zakat Foundation
- Canada Zakat
- International Development and Relief Foundation (IDRF)
- MIZAN (Muslims Implementing Zakat Associated Network)
- Canada Helps
- Muslim Hands
- Human Concern International
- Muslim Association of Canada
Conclusion
Zakat is a concept that has been introduced previously. Muslims have been following it for thousands of years. Still, many new Muslims do understand the complexities associated with zakat. We have explained everything about zakat in Canada. This blog will help you fully grasp the concept of zakat. This blog covers everything from calculating your wealth to finding the zakat amount and organisations to pay zakat. I hope it helps. Thank you for reading.
FAQs
How much is gold for Zakat in Canada?
The payable zakat on gold is 2.5%. You calculate the value of the gold you won and give off its 2.5% in zakat.
How do I calculate how much Zakat I will pay?
The Zakat amount is calculated by adding up all your assets and cash. Remember, this amount does not apply to what you owe others. For ease, you can also use online Zakat calculators.
What is Zakat Nisab in Canada?
Nisab is a set threshold by which one determines whether a Muslim is obliged to pay zakat. It is the minimum amount of a Muslim’s total savings or net capital.