Zakat on Savings and Investments in Malaysia 2026 — Complete Guide

"I have RM50,000 sitting in my savings account. Do I owe zakat on this — and if I do, how much?"

This is one of the most common questions Malaysian Muslims ask around tax season, and the uncertainty is understandable. Zakat on wealth (Zakat Harta) involves a series of conditions — a threshold, a time requirement, and rules that differ by asset type. On top of that, Malaysia's zakat administration is decentralised, meaning rules can differ from state to state.

This guide works through the full picture: what triggers the obligation, which assets are included, how to calculate what you owe, and where to pay. It also covers the income tax angle that most people do not know about.

This guide presents factual information about zakat rules as applied by Malaysian zakat authorities. It does not constitute a religious ruling (fatwa) or personalised financial advice. For a definitive determination of your own zakat obligation, consult your state's zakat authority.

Last updated 25 October 2026 · money.com.my Editorial

What Is Zakat on Wealth (Zakat Harta)?#

Zakat is one of the Five Pillars of Islam — an obligatory annual giving that purifies wealth and redistributes it to those who qualify under eight categories defined in the Quran (including the poor, the needy, those in debt, and others).

Zakat Harta refers specifically to zakat on accumulated wealth: savings, investments, gold, and business assets. It is distinct from Zakat Fitrah (the fixed annual payment made at the end of Ramadan, which every Muslim pays regardless of wealth level).

The rate for Zakat Harta is 2.5% of your zakatable assets, but this only applies once two conditions are satisfied:

1. Nisab — your total zakatable wealth must exceed the minimum threshold
2. Hawl — the wealth must have been in your possession for one full lunar year (approximately 354 days, or about 11.5 months of the Gregorian calendar)

Both conditions must be met. Wealth that crosses the nisab but has not been held for a full lunar year does not yet trigger the obligation.

What is the nisab for zakat on savings?#

Nisab is the minimum level of wealth above which zakat becomes obligatory. Under the gold standard used in Malaysia, nisab is set at the value of 85 grammes of gold.

Because gold prices fluctuate daily, the ringgit equivalent of nisab changes throughout the year. This is why no fixed RM figure should be treated as permanent.

How to find the current nisab for your state:

Each state zakat authority publishes the current nisab value on its website or via its online calculator. The figure is typically updated regularly to reflect current gold prices. JAWHAR (Jabatan Wakaf, Zakat dan Haji — the Department of Awqaf, Zakat and Hajj under the Prime Minister's Department) coordinates national zakat policy, but collection and nisab determination remain at the state level.

To illustrate the movement: PPZ-MAIWP (Federal Territories) publishes its nisab for each year, RM24,198.00 for 2024, RM29,740.00 for 2025 and RM33,996.00 for 2026, as the gold price rose. Other states set their own figures, so treat these as reference points only — by the time you read this, the figure may be different.

Action step: Before running any zakat calculation, visit your state zakat authority's website and find the current nisab figure they are applying.

Which Savings and Assets Are Zakatable?#

Not every asset you own is subject to zakat. Malaysian zakat authorities generally follow these classifications:

Current and Savings Account Balances#

Zakatable: Yes.

Cash balances in bank accounts — current accounts, savings accounts, fixed deposits — are treated as liquid wealth. If the total balance has exceeded the nisab for a full lunar year, it is subject to 2.5% zakat.

Fixed deposits are included even though the funds are locked; the key is that you are the full beneficial owner.

EPF (Employees Provident Fund)#

Zakatable: Yes, once it becomes yours to withdraw (PPZ-MAIWP's rule); other states may differ.

EPF is the most discussed asset in zakat calculations. PPZ-MAIWP's position, based on the Federal Territories Syariah Legal Consultative Committee's 120th meeting (1 November 2019), is that EPF money is zakatable at 2.5%, subject to the nisab, but the duty arises when the money becomes yours to withdraw ("milk al-taam"), not on the whole balance every year:

• For withdrawal schemes that meet that condition and are not for basic needs (for example savings above RM1 million and ages 55 and 60), zakat is due on the whole amount that can be withdrawn, without waiting a haul. Any balance left unwithdrawn for a year is then treated as savings.
• For the age-50 withdrawal from Akaun Sejahtera (formerly Account 2), zakat is due on the amount withdrawn; if you did not withdraw at 50, from age 51 it is due on the whole withdrawable amount, while the balance not withdrawn need not be zakated.
• Withdrawals for housing, education, health and permanent disability are not subject to zakat.

We could not read Lembaga Zakat Selangor's own EPF position, so if you live outside the Federal Territories, check your state authority's EPF rule.

ASNB / ASB and Unit Trusts#

Zakatable: Yes.

Amanah Saham Nasional Berhad (ASNB) funds, including Amanah Saham Bumiputera (ASB), are treated as investments and are subject to zakat on their market value. The same applies to other unit trust funds. If you have held units above the nisab value for one full lunar year, zakat applies at 2.5% of the total value.

Stocks (Shares Listed on Bursa Malaysia)#

Zakatable: Yes — generally on market value.

Malaysian zakat authorities typically assess zakat on the market value of shares held for one lunar year. Some scholarly positions argue that only the zakatable portion of the company's underlying assets should count (since a company's total assets include non-zakatable items like property and machinery). In practice, most state zakat calculators use the simpler approach of applying 2.5% to the total market value of your shareholding.

If you trade actively, the treatment may differ from long-term investment holding. Check your state authority's method.

Physical Gold Holdings#

Zakatable: Yes.

Gold is one of the original assets that triggered zakat in Islamic law. Physical gold you own — jewellery above a personal use threshold, bullion, or gold certificates — is subject to zakat based on its weight and current value. The nisab itself is defined in gold terms (85g), so gold holdings are among the more straightforward assets to assess.

Bitcoin and Cryptocurrency#

Zakatable: Debated — some states have issued guidance.

Cryptocurrency sits in a zone of active scholarly and regulatory discussion. The Selangor Zakat Board (Lembaga Zakat Selangor) has issued guidance recognising crypto assets as zakatable wealth under specific conditions, treating them similarly to investment assets. Other state authorities have not yet issued definitive positions.

If you hold significant crypto assets, the responsible approach is to contact your state's zakat authority directly for their current position before deciding whether to include these assets.

Life Insurance Cash Value#

Zakatable: Generally not.

The cash surrender value of a conventional life insurance policy is generally not treated as zakatable wealth by most Malaysian authorities, because the policyholder does not have unfettered ownership or the ability to freely access the funds. Takaful family fund contributions may be treated differently. Consult your state authority if this is a material part of your assets.

Residential Property (Owner-Occupied)#

Zakatable: No.

The home you live in is a necessity (hajat asasiyyah), not accumulated surplus wealth. It is excluded from zakat calculation.

Investment Property#

Zakatable: Yes — but under a different category.

Rental income from investment property is subject to zakat as business income (Zakat Perniagaan), which has different calculation rules from savings zakat. If you own property held for capital appreciation or generating rental income, this falls under a different zakat category. The basic principle is that the rental income (net of costs) is zakatable once conditions are met.

How do you calculate zakat on savings?#

The calculation process follows these steps:

1. List all your zakatable assets and their current values
2. Check whether the total exceeds your state's current nisab figure
3. Confirm that these assets have been in your ownership for at least one lunar year (hawl)
4. Apply the 2.5% rate

Example:

Take the nisab as PPZ-MAIWP's published 2026 figure of RM33,996.00, the value of 85 grammes of gold at RM399.95 a gram (check your own state for its figure).

RM56,000 exceeds RM33,996 → condition 1 (nisab) is met.

Assume all assets have been held for more than one lunar year → condition 2 (hawl) is met.

Zakat due: RM56,000 × 2.5% = RM1,400

EPF is left out of this example: under PPZ-MAIWP's rule it counts only once it becomes withdrawable, and then without waiting a haul (see the EPF section above).

Most state zakat authority websites provide an online calculator that handles all categories in one place, which is the simplest approach for most people.

Does zakat reduce your income tax?#

This is the part that matters financially for many Malaysian Muslim taxpayers: zakat paid to an official Malaysian zakat authority qualifies as a tax rebate under the Income Tax Act 1967.

A tax rebate reduces your tax payable directly — ringgit for ringgit. This is different from a tax relief or deduction (which only reduces your chargeable income, saving you the tax on that amount). A rebate cuts your actual tax bill.

Example:

The rebate is capped at the amount of tax charged for the year — you cannot get a refund on tax from zakat beyond what you owe. But for anyone with a material zakat liability, this is a real reduction in their income tax bill.

To claim it: when filing your LHDN e-Filing return, enter the zakat amount paid under the rebate section (Rebat — Zakat / Fitrah). You will need the official receipt from your state zakat authority.

See also: Income Tax Filing Guide for Malaysia and Income Tax Reliefs Malaysia 2026 for the full picture of how zakat interacts with your annual tax return.

Where do you pay zakat in Malaysia?#

Zakat collection in Malaysia is managed at the state level by each state's Islamic religious council (Majlis Agama Islam). There is no single federal zakat body — you pay to the authority in the state where you are resident.

Key zakat collection bodies by state:

All of these authorities now have online payment portals. Most also offer integrated zakat calculators that cover multiple asset types in a single session.

If you work in Kuala Lumpur but are registered in Selangor (common for Klang Valley residents), the general rule is to pay to the state where you are resident — but check with the authority if you are unsure.

For EPF, ask your state zakat authority how it applies its rule; PPZ-MAIWP's is summarised in the EPF section above.

A Final Note on State Variation#

Malaysia's decentralised zakat system means that specific rules — nisab figures, EPF treatment, crypto guidance, payment platforms — can vary from state to state and are updated periodically. The framework presented in this guide reflects the mainstream position applied by major state authorities, but it is not a substitute for checking with your own state's zakat authority.

If your assets sit close to the nisab threshold, or if you have complex holdings (active trading accounts, crypto, business assets, investment property), a direct consultation with your state zakat body will give you a definitive answer.

Related guides: EPF Complete Guide 2026 | Islamic Fixed Deposit Malaysia | Income Tax Reliefs Malaysia 2026

Amendment, 11 October 2026. Structural change only: a short answer and a "Last updated" line were added at the top, section headings were rewritten as the questions they answer, and one question was added to the FAQ from this guide's own text. No figure, rule or source was changed. Every figure in the short answer already appears in the body of this guide; the short answer reflects the guide as first published in April 2026, and its rules were not re-checked in this pass.

Amendment, 25 October 2026 (EPF zakat). The EPF passages now follow PPZ-MAIWP's own EPF page (zakat.com.my, saved on 17 October 2026 for our zakat guide's re-check), as our zakat guide already does. Corrected: the FAQ "Is EPF included in zakat calculation?" and the EPF section said Lembaga Zakat Selangor and PPZ-MAIWP treat EPF balances as zakatable with "each annual contribution resetting the hawl"; PPZ-MAIWP's rule (Federal Territories fatwa of 1 November 2019) makes zakat due when EPF money becomes withdrawable, on the withdrawable amount and without waiting a haul, with the age-50 rule and the exemption for housing, education, health and permanent-disability withdrawals now stated. The EPF section's heading line "Zakatable: Partially — and this requires care" now says when EPF is zakatable. Removed: the statement that Lembaga Zakat Selangor treats EPF balances as zakatable (its EPF position could not be read; now labelled unconfirmed); the bullet that "some scholars" hold only Account 3 (Akaun Fleksibel) balances are zakatable (unsourced); every reference to an EPF zakat calculator at my.epf.gov.my (FAQ, EPF section, the line under the worked example, and the "Where to pay" paragraph, which also said EPF "has arrangements with zakat bodies"), because kwsp.gov.my returned HTTP 403 and the calculator could not be confirmed; the advice to "use the EPF zakat calculator". Worked example changed: the "EPF balance (per EPF calculator) RM8,500" row is removed, because under PPZ-MAIWP's rule an EPF balance is not zakated every year with the other assets; the total is now RM56,000 and zakat RM1,400 (was RM64,500 and RM1,612.50), and the short answer at the top uses the new figures. Nothing else in the guide was re-checked in this pass. Evidence: docs/verification-log/followups-tax-epf-oct25/evidence.md. Also changed: the tax-rebate example under "Does zakat reduce your income tax?" used the old zakat figure, RM1,612, and showed RM2,888 tax payable after the rebate; it now uses RM1,400 (zakat on the RM56,000 worked example), so tax payable after the rebate is RM3,100 (RM4,500 − RM1,400).

Follow-up amendment, 25 October 2026 (nisab in the worked example). The guide's example said "Assume the current nisab is RM23,000". PPZ-MAIWP's published 2026 nisab is RM33,996.00 (gold at RM399.95 a gram, page dated 26 February 2026), so the example now uses it. The RM56,000 total still exceeds the nisab, so condition 1 is still met and the zakat is unchanged at RM56,000 × 2.5% = RM1,400. The "What is the nisab" section's "in 2024 ... approximately RM22,000–RM24,000 depending on state" now gives PPZ-MAIWP's archive figures instead: RM24,198.00 (2024), RM29,740.00 (2025) and RM33,996.00 (2026). Removed: the assumed figure and the "RM22,000–RM24,000" range (not in the saved PPZ file). Evidence: docs/verification-log/followups-batch2-oct25/evidence.md.