# 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: 9 Oct 2026
Retrieved: 1 Nov 2026

> Zakat is 2.5% of net wealth above the nisab. Who faces the automatic deduction on a saving account, the Rs 503,529 bank threshold, a worked example at today's gold rate, and the CZ-50.

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). [Today's Islamic date](/islamic-date) shows where the Hijri year stands.

## Zakat deduction on savings accounts 2026

**Zakat deduction on a saving account** happens once a year, on 1 Ramadan, and only when the balance that day is at or above the government's bank nisab. For Ramadan 1447 AH (February 2026) that nisab was **Rs 503,529**, notified by the Ministry of Poverty Alleviation and Social Safety on 16 February 2026 and passed to every bank by the State Bank of Pakistan the next day (BPRD Circular Letter No. 3 of 2026).

- **Which accounts:** the notification covers savings, profit-and-loss sharing (PLS) and similar profit-bearing bank accounts (asset code 101 in the zakat rules).
- **Which are not:** current accounts, which pay no profit, are outside this deduction. A balance below the nisab on 1 Ramadan is not touched either.
- **How much:** 2.5% of the whole balance on the valuation date, not only the part above Rs 503,529. A savings balance of Rs 600,000 on 1 Ramadan loses Rs 15,000.
- **Next deduction:** Ramadan 1448 is expected around February 2027, subject to moon sighting. The ministry notifies a new bank nisab shortly before each Ramadan, so the Rs 503,529 figure is last year's until the 1448 notice appears. We will update this page the day it does.
- **How to stop it:** file the CZ-50 declaration at least 30 days before 1 Ramadan (steps below). For Ramadan 1448 that means early January 2027.

## 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 329,228** at Rs 6,271 a tola (9 Oct 2026) |
| Gold nisab | 7.5 tola (87.48 g) of 24k gold | about **Rs 3,257,160** at Rs 434,288 a tola (9 Oct 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 868,576 at Rs 434,288 a tola on 9 October 2026), Rs 50,000 cash, and a Rs 100,000 instalment due this year:

- Net wealth: 800,000 + 868,576 + 50,000 - 100,000 = **Rs 1,618,576**
- That is above both the silver nisab and the bank nisab.
- Zakat: 1,618,576 x 2.5% = **Rs 40,464**

## 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 week's gold rate.** Gold rose Rs 7,900 a tola on 16 September 2026, fell Rs 3,800 the next day, fell another Rs 1,800 on 22 September and fell about Rs 8,900 more on 23 September. Silver dropped from Rs 7,018 to Rs 6,707 a tola on the same day. A rate from even last week can be tens of thousands of rupees out on the gold nisab.
- **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.


*Nisab figures reviewed and updated on 9 October 2026. Gold and silver are the All Pakistan Gems and Jewellers Association tola rates recorded on our own trackers for that day. Both move daily, so check the [gold rate](/data/gold-24k-tola) and [silver rate](/data/silver-tola) pages before you finalise your own figure.*

## Frequently asked questions

**What is the nisab for zakat in Pakistan right now?**

Three numbers apply. The government's bank-deduction nisab for Ramadan 1447 AH was Rs 503,529 (the 1448 figure is notified shortly before Ramadan 2027). The silver nisab (52.5 tola) is about Rs 329,228 at Rs 6,271 a tola on 9 October 2026. The gold nisab (7.5 tola of 24k) is about Rs 3,257,160 at Rs 434,288 a tola.

**Is zakat deducted from a saving account automatically?**

Yes. On 1 Ramadan banks deduct 2.5% from savings, PLS and similar profit-bearing accounts whose balance is at or above the notified nisab (Rs 503,529 for 1447 AH). Current accounts are not covered, and a CZ-50 filed 30 days ahead stops the deduction.

**How do I stop my bank deducting zakat on 1 Ramadan?**

File a Zakat Declaration (Form CZ-50), signed before a notary public, with your branch at least 30 days before 1 Ramadan. Banks accept the original or a notarised true copy, not a photocopy.

**Does zakat apply to jewellery I wear?**

On the majority Hanafi view, yes. Gold and silver jewellery counts as zakatable wealth at its current market value, whether or not you wear it.

**How much zakat is due on Rs 1,000,000?**

Rs 25,000, because the rate is 2.5% of net zakatable wealth held for one lunar year above the nisab.

## Sources

- Zakat and Ushr Ordinance 1980 (Government of Pakistan): https://pakistancode.gov.pk/english/index.php/UY2FqaJw1-apaUY2Fqa-cpuY-sg-jjjjjjjjjjjjj
- Live gold and silver rates in Pakistan (All Pakistan Gems and Jewellers Sarafa Association) (Business Recorder): https://www.brecorder.com/live/gold-rates
- Searchable gold rate tracker (24K per tola) (Searchable.pk): https://searchable.pk/data/gold-24k-tola
- Searchable silver (chandi) rate tracker (Searchable.pk): https://searchable.pk/data/silver-tola
- BPRD Circular Letter No. 3 of 2026: Nisab for compulsory zakat deduction (Ministry of PASS notification, 16 Feb 2026) (State Bank of Pakistan): https://www.sbp.org.pk/bprd/2026/CL3-Notification.pdf

How to cite: "How to calculate zakat in Pakistan 2026: nisab, bank deduction and CZ-50", Searchable, 9 Oct 2026, https://searchable.pk/guides/banking/how-to-calculate-zakat