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Do you have to pay Zakat on your investments?

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Summary

Yes. Investments are zakatable assets if your total wealth has been above the Nisab threshold for a full Islamic year (354 days). You calculate Zakat on the current market value of your portfolio, not what you paid. Most scholars agree the rate is 2.5%, applied to the full value of your holdings above Nisab.

Key takeaway

Zakat on investments isn't complex. Current value × 2.5%, once a year, if you're above the threshold.

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