Zakat on Stocks and ETFs

Calculate Zakat on shares based on market value and intent.

Use the Zakat Calculator

Stocks and ETFs are zakatable assets. Many scholars distinguish between trading positions and long-term investments, but both require careful valuation.

Quick answer

  • Trading stocks: use full market value.
  • Long-term holdings: scholars differ; many use market value.
  • Include cash dividends held on your Zakat date.

How to calculate

  1. List each holding with number of shares.
  2. Use market price on your Zakat date.
  3. Add cash dividends and pending balances.
  4. Apply 2.5% if above Nisab.

Common mistakes

  • Using year-end statements instead of your Zakat date.
  • Forgetting dividends sitting in brokerage cash.
  • Ignoring foreign holdings that need currency conversion.
Estimate your investment Zakat with the calculator.

FAQ

Do I pay Zakat on retirement accounts?

Views differ. If you can access the funds, many scholars include them.

What if I am a long-term investor?

Some pay on dividends only, but many pay on market value to be safe.

Are ETFs treated differently from stocks?

No. They are similar for Zakat purposes and valued at market price.

Related guides

Zakat on Business Inventory

Value trade goods at selling price and include business cash.

Zakat on Cash and Savings

Include all cash on hand, savings, and digital balances in Zakat.

Zakat on Debts and Loans

Learn which debts reduce your net Zakatable wealth.

How to Calculate Zakat

A simple step-by-step guide for calculating your Zakat.

More resources: FAQ and About Zakat.