If you follow the opinion of the Ḥanafī scholars, who require Zakāh on all gold regardless of the reason for its possession, meaning they do not differentiate between hoarded gold and women’s jewelry, you must pay a quarter of a tenth (2.5%) of the gold that has reached the Niṣāb (minimum amount). The Niṣāb is calculated based on 24-carat gold for which the Niṣāb amount is 85 grams.

If your gold is 21-carat, its Niṣāb is 97.14 grams. If your gold is 18-carat, its Niṣāb is 113.33 grams.

The method for calculating the Niṣāb is by multiplying the carat by 85 and then dividing by 24.

After calculating the Niṣāb, you must pay a quarter of a tenth (2.5%), and the value of this quarter of a tenth is calculated based on the market price of the gold on the day the Zakāh is due, excluding the workmanship cost.

Fatwā issued by Dr. Khālid Naṣr