Zakat Malaysia 2026 — Types, Rates, Calculation and How to Pay

Zakat is one of the five pillars of Islam — a mandatory act of worship in the form of wealth purification. For Malaysian Muslims, it is also one of the most financially significant obligations you will manage each year, because every ringgit you pay in zakat directly reduces your income tax bill.

Yet zakat remains one of the least understood financial obligations. Which types of wealth are subject to zakat? What counts toward the threshold? How do you actually calculate it when you have a mix of savings, EPF, investments, and business income? And how does the state-by-state system work in practice?

This guide works through all of it — type by type, with the calculation logic and the practical steps for paying online. It is written as a factual reference, not a religious ruling. For a definitive determination of your personal zakat obligation, consult your state's zakat authority or a qualified religious scholar.

The Two Categories: Zakat Fitrah and Zakat Harta#

Before anything else, understand that "zakat" in Malaysia covers two distinct obligations.

Zakat Fitrah is the simpler one. It is a fixed amount paid per person (including dependants) during Ramadan, before the Eid al-Fitr prayer. Each state's religious authority sets the rate annually — it varies from roughly RM5 to RM14 per person depending on the state and the staple food benchmark used.

Every Muslim who has food in excess of their needs for the day of Eid must pay zakat fitrah. There is no wealth threshold — even low-income Muslims pay it if they can. It is typically collected at mosques or paid online through the state zakat portal.

Zakat Harta (zakat on wealth) is the more complex obligation, and the focus of this guide. It applies to accumulated wealth above a minimum threshold (nisab), held for one lunar year (hawl). The standard rate is 2.5% of qualifying wealth, though the calculation method varies by asset type.

For the remainder of this guide, "zakat" refers to Zakat Harta unless stated otherwise.

The Nisab Threshold — When Zakat Becomes Obligatory#

Zakat on wealth is only obligatory when your total qualifying assets exceed the nisab. In Malaysia, the nisab is calculated as the value of 85 grammes of gold at the prevailing market price.

Because gold prices fluctuate, the nisab in ringgit changes regularly. Each state zakat authority publishes its current nisab figure — this is the number you use, not a self-calculated estimate.

Key points about nisab#

• The nisab applies to your net qualifying assets after deducting essential living expenses (for zakat pendapatan) or after accounting for liabilities (for business zakat)
• If your assets fall below the nisab at any point during the hawl period, the clock resets
• Different asset types may have different hawl starting points — your savings account and your share portfolio do not necessarily share the same anniversary date
• Gold price movements mean the nisab can shift meaningfully year to year — always check the current figure before calculating

Where to check the current nisab#

Each state publishes this on their zakat authority website:

| State / Federal Territory | Authority | Website | |---|---|---| | Kuala Lumpur, Putrajaya, Labuan | PPZ-MAIWP | zakat.com.my | | Selangor | Lembaga Zakat Selangor (LZS) | zakatselangor.com.my | | Penang | Zakat Pulau Pinang (ZPP) | zakatpenang.com | | Johor | Majlis Agama Islam Johor (MAIJ) | maij.gov.my | | Perak | Majlis Agama Islam dan Adat Melayu Perak | maiamp.gov.my | | Other states | Respective Majlis Agama Islam Negeri | Search "[state name] zakat authority" |

Types of Zakat Harta in Malaysia#

Malaysian zakat authorities generally recognise the following categories. Not every state collects every type identically — there are minor differences in methodology — but the core categories are consistent.

1. Zakat on Income (Zakat Pendapatan)#

This is the most common type for salaried Malaysians. Zakat pendapatan applies to your annual gross income from employment, including salary, allowances, bonuses, and benefits in kind.

The calculation follows one of two methods, depending on the state authority:

Method 1 — Gross income method (without deductions): Zakat = 2.5% × gross annual income (if above nisab)

Method 2 — Net income method (with allowable deductions): Zakat = 2.5% × (gross annual income − allowable deductions)

Allowable deductions typically include:

• Self-maintenance (varies by state — typically RM9,000–RM12,000/year)
• Spouse maintenance (if applicable)
• Children's maintenance (per child, up to a cap)
• Parents' maintenance
• EPF employee contribution (11%)
• SOCSO/EIS contributions
• Zakat fitrah already paid

The net income method usually produces a lower zakat amount and is the more commonly applied method across most states.

Example calculation (net income method):

| Item | Amount | |---|---| | Gross annual salary | RM96,000 | | Less: self-maintenance | (RM9,000) | | Less: spouse maintenance | (RM5,000) | | Less: children maintenance (2 × RM2,000) | (RM4,000) | | Less: EPF employee contribution (11%) | (RM10,560) | | Net qualifying income | RM67,440 |

If the nisab is, say, RM25,000 — the net income of RM67,440 exceeds it. Zakat payable = 2.5% × RM67,440 = RM1,686.

Use your state's calculator. Every zakat authority provides an online zakat pendapatan calculator that applies the correct deduction amounts and current nisab for your state. Do not manually calculate if you can avoid it.

2. Zakat on Savings (Zakat Wang Simpanan)#

Applies to bank savings, fixed deposits, and other cash deposits that have been held for one hawl (lunar year) and exceed the nisab.

The calculation is straightforward: 2.5% of the lowest balance held during the hawl period (some states use the year-end balance — check your state's methodology).

This includes:

• Savings accounts
• Fixed deposits (including Islamic fixed deposits)
• Current accounts (balance above daily operating needs)
• Foreign currency deposits

For a deeper breakdown of which savings and investment accounts qualify, see our Zakat on Savings and Investments guide.

3. Zakat on Business (Zakat Perniagaan)#

Businesses owned by Muslims — whether sole proprietorships, partnerships, or companies — are subject to zakat on their net qualifying assets.

The standard formula used by most Malaysian zakat authorities:

Zakat = 2.5% × (current assets − current liabilities)

Current assets include: cash, receivables, inventory, and short-term investments. Fixed assets (equipment, property used in the business) are generally excluded.

For sole proprietors who mix personal and business finances, the business zakat calculation can overlap with zakat pendapatan. Most zakat authorities advise paying whichever is higher — not both — to avoid double-counting. Consult your state authority for guidance specific to your situation.

If you operate as a sole proprietor, see our guide on sole proprietor vs Sdn Bhd for how business structure affects both your tax and zakat obligations.

4. Zakat on Shares and Investments (Zakat Saham)#

If you hold shares in Bursa-listed companies, unit trusts, or other investment instruments, these may be subject to zakat.

Two approaches exist:

If the company pays zakat on behalf of shareholders — many Shariah-compliant companies and Islamic unit trust funds pay zakat at the corporate level. Check the fund's annual report or prospectus. If zakat has already been deducted, you do not pay again on that investment.

If the company does not pay zakat — you calculate zakat on your share of the company's net qualifying assets (if you can determine it), or more practically, on the market value of your shareholding at the end of the hawl period.

For unit trusts, the fund manager's annual report typically states whether zakat has been paid on the fund's income. ASB and other ASNB funds have their own zakat treatment — see the ASNB Unit Trusts Explained guide for specifics.

5. Zakat on Gold and Silver (Zakat Emas dan Perak)#

Gold and silver held as investment or savings (not personal jewellery worn regularly) are subject to zakat.

Gold nisab: 85 grammes Silver nisab: 595 grammes

If you hold gold above 85g that is not regularly worn personal jewellery, zakat = 2.5% of the total gold value at market price.

The distinction between "personal jewellery" (uruf) and "investment gold" matters:

• Gold jewellery worn daily or regularly is generally exempt from zakat (the uruf exemption)
• Gold bars, gold coins, gold savings accounts (such as those offered by Maybank, CIMB, or Public Bank), and jewellery kept in a safe as a store of value are considered investment gold and are zakatable
• States differ slightly on the jewellery exemption — some exempt all personal jewellery below a certain weight, others apply the uruf rule based on usage

6. Zakat on EPF (Zakat KWSP)#

EPF savings are a significant component of most Malaysian Muslims' total wealth. The question of whether EPF is zakatable — and how to calculate it — generates considerable discussion.

The position of several major state zakat authorities, including Lembaga Zakat Selangor and PPZ-MAIWP, is that EPF is zakatable wealth. EPF itself provides a dedicated zakat calculator on its website (my.epf.gov.my) to help members determine the zakatable amount.

Two common approaches:

Pay zakat on the full balance annually — treat EPF as savings that you own, even though access is restricted. Apply 2.5% to the balance above nisab.

Pay zakat on withdrawal — defer zakat payment until you actually withdraw EPF funds, then pay 2.5% on the amount withdrawn. Some scholars consider this acceptable given that EPF is not freely accessible.

The first approach is considered more prudent by most Malaysian zakat authorities. See our EPF Complete Guide 2026 for how the Account 1/2/3 structure affects your total EPF balance.

7. Zakat on Agriculture (Zakat Pertanian) and Livestock (Zakat Ternakan)#

These apply primarily to farmers and livestock owners. The rates differ from the standard 2.5%:

• Rain-fed agriculture: 10% of harvest value (crops watered naturally)
• Irrigated agriculture: 5% of harvest value (crops requiring paid irrigation)
• Livestock: specific thresholds apply (e.g., 30 cattle = 1 young cow as zakat)

Most urban Malaysians will not encounter these categories. If you do farm or raise livestock commercially, your state zakat authority has specific nisab tables and filing processes.

The Income Tax Rebate — Why This Matters Financially#

This is the single most important financial fact about zakat that many Malaysians overlook.

Zakat paid to an authorised state zakat authority qualifies as a tax rebate under Malaysian income tax law. Not a deduction — a rebate.

The difference is enormous:

| Mechanism | How it works | Tax saving on RM2,000 zakat payment | |---|---|---| | Tax deduction | Reduces chargeable income | RM2,000 × your marginal tax rate (e.g., 24%) = RM480 saved | | Tax rebate | Reduces tax payable directly | RM2,000 saved — ringgit for ringgit |

A RM2,000 zakat payment saves you RM2,000 in income tax (up to the amount of tax charged for that year). This means the effective cost of zakat for a tax-paying Muslim is zero — the obligation is fulfilled, and the tax bill drops by the same amount.

Conditions for the rebate#

• The zakat must be paid to an authorised state zakat authority (not directly to individuals or informal channels)
• You must have an official receipt (resit zakat) from the authority
• Enter the zakat amount in your annual income tax return via the MyTax e-Filing portal
• The rebate cannot exceed your total tax charged for the year — excess zakat does not carry forward

Timing strategy#

Many Malaysians pay zakat in December or January to align with the tax year (January–December). This ensures the zakat receipt falls within the correct assessment year for income tax filing. There is no religious requirement to align zakat with the calendar year — the hawl is a lunar year — but the tax benefit makes calendar-year alignment practical.

If your income tax bill is RM6,000 and your zakat obligation is RM4,000, paying zakat to an authorised authority means your net tax outflow drops to RM2,000. The RM4,000 goes to the zakat authority instead of LHDN — but the total cash leaving your pocket is the same RM6,000 either way.

How to Pay Zakat Online — Step by Step#

Every state zakat authority now offers online payment. The general process:

Step 1 — Identify your state authority#

Zakat in Malaysia is administered at the state level. You pay to the authority governing your state of residence (not your state of employment, if different).

Step 2 — Use the online calculator#

Go to your state authority's website and use their zakat calculator. Select the type of zakat (pendapatan, simpanan, perniagaan, etc.), enter the required figures, and the calculator returns your zakat obligation.

Step 3 — Pay online#

Most authorities accept:

• FPX (direct bank transfer — the most common method)
• Credit/debit card
• Direct debit or standing instruction (for monthly zakat pendapatan payments)

Some authorities also accept payment via salary deduction — your employer deducts a monthly zakat amount and remits it to the authority, similar to PCB for income tax. Ask your HR department if this is available.

Step 4 — Keep the receipt#

The online payment generates a digital receipt (resit zakat). Save this immediately. You need it for your LHDN income tax filing to claim the tax rebate. If paying by salary deduction, your employer provides an annual zakat deduction statement.

Monthly vs annual payment#

You can pay zakat pendapatan monthly (divide the annual estimate by 12) or in a lump sum. Monthly payment through salary deduction is popular because it spreads the cash flow impact and aligns with income earning — similar to how PCB works for income tax.

Zakat and Tax Filing — How They Interact#

When you file your annual income tax return on the MyTax portal, there is a specific field for zakat payment. Here is how the two interact:

1. Calculate your total income tax payable (after all deductions and reliefs)
2. Enter your total zakat paid during the assessment year (with receipt reference)
3. The system applies the zakat as a rebate — reducing tax payable directly
4. Your remaining tax payable = income tax charged − zakat paid (minimum zero)

If you pay income tax via PCB (monthly salary deduction) and also pay zakat via salary deduction, both are accounted for in your annual filing. Any overpayment results in a refund from LHDN.

For the full income tax filing process, see our e-Filing MyTax guide and the Income Tax Filing guide.

State-by-State Differences — What Varies#

Malaysia's zakat system is decentralised. Each state has its own Majlis Agama Islam (Islamic Religious Council) that administers zakat collection and distribution. This means:

• Nisab figures may differ slightly between states (same formula — 85g gold — but states may use different gold price references or update dates)
• Deduction amounts for zakat pendapatan (self-maintenance, spouse, children) vary by state
• Calculator methodology may differ — some states use gross income method as default, others use net income
• Collection channels differ — some states have more advanced online portals than others
• Distribution is entirely state-managed — zakat collected in Selangor is distributed in Selangor

This decentralisation means you should always use your state authority's calculator and rates, not generic figures from a national source. The calculation in this guide uses illustrative numbers — your actual zakat will be determined by your state's specific parameters.

The Eight Asnaf — Where Your Zakat Goes#

Zakat distribution in Malaysia follows the Quranic mandate of eight categories of recipients (asnaf):

1. Fakir — those in extreme poverty (income below 50% of the poverty line)
2. Miskin — the poor (income below the poverty line but above fakir level)
3. Amil — zakat administrators (the state authority staff who collect and distribute)
4. Muallaf — new converts to Islam
5. Riqab — those in bondage (historically — now often interpreted as helping those trapped in debt or exploitation)
6. Gharimin — those burdened by debt (debt incurred for basic needs, not extravagance)
7. Fisabilillah — those striving in the path of Allah (includes education, da'wah, and community welfare programmes)
8. Ibnu Sabil — travellers in need (stranded or destitute travellers)

State zakat authorities publish annual reports showing distribution across these categories. The largest shares typically go to fakir, miskin, and fisabilillah programmes — including education scholarships, welfare assistance, and community development.

Common Mistakes to Avoid#

Paying zakat informally without a receipt. Giving money directly to an individual in need is sadaqah (voluntary charity) — it is praiseworthy, but it does not count as zakat for tax rebate purposes unless channelled through an authorised state zakat authority. If you want both the religious obligation fulfilled and the tax benefit, pay through the official channel and keep the receipt.

Double-counting income and savings. If you pay zakat pendapatan on your gross annual income, and the same money ends up in a savings account, you do not pay zakat on savings again for that same wealth in the same hawl period. The key is to avoid double-taxation of the same ringgit. Most state calculators handle this — but if you calculate manually, be careful.

Ignoring EPF. EPF balances are substantial — for a RM6,000/month earner with 10 years of service, the EPF balance can easily exceed RM150,000. If your state authority's position is that EPF is zakatable, ignoring it means you may be underpaying zakat significantly.

Assuming zakat and income tax are separate obligations. They interact directly through the rebate mechanism. A Muslim who pays both zakat and full income tax without claiming the rebate is overpaying their total obligation. File properly and claim what you are entitled to.

Paying to the wrong state. Pay to the authority governing your state of residence. If you live in Selangor but work in KL, your zakat goes to Lembaga Zakat Selangor — not PPZ-MAIWP.

Frequently Asked Questions#

How many types of zakat are there in Malaysia?

Malaysian state zakat authorities generally recognise six to eight types of zakat on wealth (Zakat Harta): zakat on income (zakat pendapatan), savings (wang simpanan), business (perniagaan), shares/investments (saham), gold and silver (emas and perak), agriculture (pertanian), livestock (ternakan), and EPF (KWSP). Zakat fitrah — the fixed annual obligation during Ramadan — is a separate category. Not every state collects every category identically, so check with your state's zakat authority.

What is the nisab for zakat in Malaysia in 2026?

Nisab is the minimum threshold of wealth before zakat becomes obligatory. It is calculated as the value of 85 grammes of gold at the current market price. Because gold prices fluctuate, the nisab in ringgit changes regularly. Always check your state zakat authority's website for the current nisab figure — they publish updated values regularly.

Can I pay zakat online in Malaysia?

Yes. Every major state zakat authority now offers an online portal with both a calculator and payment gateway. Examples include Lembaga Zakat Selangor (zakatselangor.com.my), Pusat Pungutan Zakat MAIWP (zakat.com.my for KL, Putrajaya, and Labuan), and equivalent bodies in Penang, Johor, and all other states. Payment methods typically include FPX, credit/debit card, and direct debit.

Does zakat reduce my income tax in Malaysia?

Yes — and it is a rebate, not a deduction. A tax rebate reduces your tax payable ringgit-for-ringgit. If you owe RM5,000 in income tax and paid RM3,000 in zakat to an authorised state zakat authority, your tax bill drops to RM2,000. Enter the zakat amount in your e-Filing form on the MyTax portal with your official receipt as supporting documentation.

Is zakat fitrah the same as zakat on wealth?

No. Zakat fitrah is a fixed per-person obligation paid during Ramadan, before Eid al-Fitr prayers. The rate is set annually by each state's religious authority — typically RM5 to RM14 per person. Zakat on wealth (Zakat Harta) is calculated as a percentage of qualifying assets above the nisab threshold and can be paid at any time during the year, though many Malaysians align it with their tax filing calendar.

The Bottom Line#

Zakat is both a religious obligation and a financially significant event. For a Muslim earning RM8,000 per month, the annual zakat pendapatan alone can run RM2,000–RM3,000 — and every ringgit of that reduces your income tax bill directly.

The practical steps are simpler than the theory:

1. Check your state authority's current nisab
2. Use their online calculator for each applicable zakat type
3. Pay online and keep the receipt
4. Enter the zakat amount in your LHDN income tax return to claim the rebate

If you have a mix of income, savings, EPF, and investments, start with zakat pendapatan (the largest category for most salaried workers) and work through the others systematically. Your state authority's helpline can clarify any overlap questions.

Every guide on money.com.my is fact-checked against primary sources (Bank Negara Malaysia, Department of Statistics Malaysia, KWSP/EPF, LHDN, state zakat authorities) before publication. If you find an error, email us — corrections are published with a dated amendment note.