# How to calculate zakat in Pakistan 2026: nisab, bank deduction and CZ-50

Source: Searchable (https://searchable.pk/guides/banking/how-to-calculate-zakat)
Type: Guide
Author: Searchable Editorial
Published: 17 Sept 2026
Updated: 17 Sept 2026
Retrieved: 17 Sept 2026

> Zakat is 2.5% of net wealth above the nisab. Here is what counts, the Rs 503,529 bank deduction threshold, a worked example, and how to file the CZ-50 exemption.

Zakat is **2.5% of your net zakatable wealth** once it has stayed at or above the nisab for one lunar year. In Pakistan the government also deducts zakat automatically from many bank accounts on **1 Ramadan**. The threshold for that deduction in 2026 (1447 AH) was **Rs 503,529**. This guide shows how to work out what you owe, what counts, and how to stop the bank deduction if you pay yourself. For a quick figure, use our [Zakat Calculator 2026](/tools/finance/zakat-calculator).

## Nisab in 2026: the three numbers to know

| Threshold | Basis | Value |
|---|---|---|
| Bank deduction nisab (government) | Notified for Ramadan 1447 AH | **Rs 503,529** |
| Silver nisab | 52.5 tola (612.36 g) of silver | about **Rs 364,354** at Rs 595/g (16 Sep 2026) |
| Gold nisab | 7.5 tola (87.48 g) of 24k gold | about **Rs 3,429,303** at Rs 39,201/g (16 Sep 2026) |

The Ministry of Poverty Alleviation and Social Safety notified the Rs 503,529 bank nisab on 16 February 2026, up from Rs 179,689 in 2025 because gold and silver prices rose. The silver and gold figures change every day with metal prices. Check the latest on our [silver price](/data/silver-tola) and [24k gold price](/data/gold-24k-tola) pages.

Many Pakistani scholars prefer the silver nisab because it is lower and so reaches more recipients. If your total zakatable wealth is above the silver nisab, most scholars say zakat is due on all of it.

## What counts as zakatable wealth

**Include:**

- Cash at home and in every bank account, including savings, current and digital wallets
- Gold and silver, including jewellery (the majority Hanafi view)
- Goods held for sale in a business (stock at its current sale value)
- Shares and funds you hold to trade
- Money owed to you that you expect to get back

**Leave out:**

- Your home, car, furniture and other items for personal use
- A rented-out property itself (the rent you have saved counts as cash)
- Tools and machinery used in your business

**Deduct:** debts you must pay within the year, such as a loan instalment or a supplier bill due soon.

## How to calculate zakat, step by step

1. **Pick your zakat date.** It is the Islamic date one lunar year after your wealth first reached the nisab. Many people use 1 Ramadan so it lines up with the bank deduction.
2. **Add up your cash and balances** on that date.
3. **Value your gold and silver** at that day's rate per tola or gram (the selling price you would actually get, if you prefer a cautious figure).
4. **Add business stock, trading shares and money owed to you.**
5. **Subtract debts due within the year.**
6. **Compare with the nisab.** If the result is at or above it, zakat is due.
7. **Multiply by 2.5%.** Every Rs 1,000,000 of net wealth means Rs 25,000 in zakat.

### Worked example

Savings of Rs 800,000, 2 tola of 24k gold (Rs 914,472 at Rs 457,236 a tola on 16 September 2026), Rs 50,000 cash, and a Rs 100,000 instalment due this year:

- Net wealth: 800,000 + 914,472 + 50,000 - 100,000 = **Rs 1,664,472**
- That is above both the silver nisab and the bank nisab.
- Zakat: 1,664,472 x 2.5% = **Rs 41,612**

## The automatic bank deduction on 1 Ramadan

Under the Zakat and Ushr Ordinance 1980, banks deduct 2.5% on the first day of Ramadan from savings, profit-and-loss sharing and similar deposit accounts whose balance on that day is **at or above the notified nisab**. The deduction is taken on the whole balance, not only the amount above the nisab. Banks pay it into the Central Zakat Account at the State Bank of Pakistan.

- A balance below the nisab on 1 Ramadan is not touched.
- The deduction covers only that bank balance. You still owe zakat on your gold, business stock and other assets.

## How to stop the deduction: the CZ-50 form

If you follow a school of thought that does not accept compulsory deduction, or you prefer to pay your zakat yourself, you can file a **Zakat Declaration (Form CZ-50)** with your bank.

1. Get the CZ-50 format from your bank's branch or website.
2. Fill it in and sign it before a **notary public**. Banks accept only the original or a notarised true copy, not a photocopy.
3. Submit it to your branch **at least 30 days before 1 Ramadan**. Ramadan 1448 is expected in February 2027, subject to moon sighting, so aim to file in early January 2027.
4. Keep the bank's acknowledgement. The declaration is a legal statement, and a false one carries legal consequences.

## How to pay zakat

- **Directly to deserving people** you know, such as relatives who are not your parents, children or spouse.
- **Through a registered charity or trust** that states it collects and distributes zakat separately.
- **Through the government zakat system**, which receives the bank deductions and distributes them through provincial zakat councils.

Keep a note of what you paid and when, so next year's calculation is easy.

## Common mistakes

- **Counting only the bank balance** and forgetting jewellery.
- **Using last year's gold rate.** Gold moved by Rs 7,900 a tola in a single day this month.
- **Moving money out on the night before 1 Ramadan** to dodge the deduction. It only changes who collects the zakat, not whether you owe it.
- **Filing CZ-50 late.** A form handed in after the cut-off does not stop that year's deduction.

For a religious ruling on your own case, ask a qualified scholar. For the numbers, the [Zakat Calculator](/tools/finance/zakat-calculator) does the arithmetic with today's gold and silver rates.

## Frequently asked questions

**What is the zakat nisab in Pakistan in 2026?**

The government set the nisab for automatic bank deduction at Rs 503,529 for Ramadan 1447 AH. The silver nisab (52.5 tola) was about Rs 364,354 and the gold nisab (7.5 tola) about Rs 3.43 million at 16 September 2026 prices.

**How much zakat is due on Rs 10 lakh?**

Zakat is 2.5%, so Rs 1,000,000 of net zakatable wealth held for a lunar year means Rs 25,000 in zakat.

**How do I stop zakat being deducted from my bank account?**

Submit a notarised Zakat Declaration (Form CZ-50) to your bank at least 30 days before 1 Ramadan.

## Sources

- Pakistan fixes zakat nisab at Rs503,529 for Ramadan 2026 (17 February 2026) (Profit by Pakistan Today): https://profit.pakistantoday.com.pk/2026/02/17/pakistan-fixes-zakat-nisab-at-rs503529-for-ramadan-2026/
- Govt announces zakat nisab 2026 (17 February 2026) (ProPakistani): https://propakistani.pk/2026/02/17/govt-announces-zakat-nisab-2026/
- Zakat on bank deposits in Pakistan: rates, nisab and deductions (updated 8 September 2026) (Allied Bank Limited): https://www.abl.com/zakat-on-bank-deposits-pakistan/
- Gold price increases by Rs7,900 per tola in Pakistan (16 September 2026) (Business Recorder): https://www.brecorder.com/news/40439775/gold-price-increases-by-rs7900-per-tola-in-pakistan

How to cite: "How to calculate zakat in Pakistan 2026: nisab, bank deduction and CZ-50", Searchable, 17 Sept 2026, https://searchable.pk/guides/banking/how-to-calculate-zakat