Zakat — the third pillar of Islam — is an annual obligatory charity of 2.5% on certain categories of wealth. As cryptocurrency has grown from a niche technology to a mainstream asset held by millions of Muslims worldwide, the question of zakat on crypto has become increasingly urgent. This guide provides a comprehensive, practical framework for calculating zakat on your cryptocurrency portfolio in 2026.
The short answer: yes, for most cryptocurrencies held as investments. The scholarly consensus that has emerged over the past several years treats cryptocurrency as zakatable wealth (mal zakawi) under the following reasoning:
Scholars who argue for zakat on crypto include the European Council for Fatwa and Research (ECFR), the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and numerous contemporary Islamic economists.
Zakat is only due if your total zakatable wealth meets or exceeds the nisab — the minimum threshold. There are two nisab standards, and scholars differ on which to use for cryptocurrency:
| Standard | Quantity | 2026 Approximate USD Value | Scholars Who Prefer |
|---|---|---|---|
| Gold Nisab | 85 grams of gold | ~$7,820 USD | Hanafi, Maliki (for currency-like assets) |
| Silver Nisab | 595 grams of silver | ~$620 USD | Many contemporary scholars for broad inclusion |
For cryptocurrency, most contemporary scholars recommend using the gold nisab (~85g of gold) as cryptocurrency is more comparable to gold as a store of value. This means if your total zakatable cryptocurrency portfolio is worth less than approximately $7,820, no zakat is due.
However, scholars who prioritize maximizing charitable giving and broadening zakat's social impact often recommend the silver nisab. If your portfolio exceeds ~$620, you should consult your local Islamic authority.
Zakat is only due on wealth that has been held for one complete lunar year (hawl). The Islamic lunar year is approximately 354 days, or about 11 days shorter than the Gregorian calendar year.
How hawl applies to crypto:
The zakat rate on monetary wealth, trade goods, and gold/silver is 2.5% (1/40th) of the total zakatable amount. This is the same rate applied to cash savings and gold jewelry held for investment purposes.
Provided: (1) portfolio value ≥ nisab threshold AND (2) held for one lunar year (hawl)
The calculation uses the current market value on your zakat anniversary date, not the cost basis or average purchase price. This means if your portfolio has appreciated significantly, you pay zakat on the current higher value.
In this example, the investor owes $250 in zakat for the year. This would typically be paid in cash (or crypto equivalent) to legitimate zakat beneficiaries — the eight categories mentioned in Quran 9:60, including the poor, the needy, and those in debt.
Cryptocurrency received as income — mining rewards, staking rewards (though staking is itself debated), airdrops, or salary — is treated differently by scholars. Some apply the agricultural zakat rate (10%) to income; others treat it as trade goods (2.5%). The safer position for airdrops and unexpected receipt is to include them in your general portfolio for the 2.5% calculation.
Cryptocurrency locked in DeFi protocols (liquidity pools, yield farms) is still your property and should be included in zakat calculations at its current market value. However, the use of interest-bearing DeFi protocols is itself a Shariah concern.
Zakat is calculated on current market value, not cost basis. If your portfolio is worth less than what you paid but still above the nisab, you pay zakat on the current value. If it has dropped below the nisab, no zakat is due that year.
NFTs held for resale (as trade inventory) are zakatable at 2.5% of their current market value. NFTs held for personal use (digital art for personal enjoyment) follow the ruling of personal effects — generally not zakatable unless they significantly exceed ordinary use.
Zakat should be paid promptly once the hawl is complete. You can pay in:
Legitimate zakat organizations include Islamic Relief Worldwide, National Zakat Foundation (UK), Zakat Foundation of America, and recognized local Islamic charities in your country.
Our free Zakat Calculator automatically determines your nisab, calculates your 2.5% obligation, and updates with live gold prices.
Open Zakat Calculator →Zakat is on current market value, not purchase price. If your portfolio currently exceeds the nisab despite losses from cost basis, zakat is still due on the current value.
For coins purchased within the past year, some scholars still include them in the portfolio-anniversary method. If you use a fixed annual zakat date, include all holdings as trade goods on that date regardless of individual purchase dates.
Yes. Stablecoins are treated as cash equivalents and are subject to the same 2.5% zakat as cash savings. They should be included in your total zakatable wealth calculation.
The gold nisab fluctuates with gold prices. At approximately $7,820 USD, this is roughly SAR 29,300 at the April 2026 exchange rate. Always use the gold price on your specific zakat anniversary date for accuracy.
If you have outstanding debts (e.g., you borrowed money to buy crypto — though this itself is discouraged), most scholars allow you to deduct short-term liabilities from your zakatable wealth. Long-term debts are handled differently — consult a scholar.
Disclaimer: This article provides educational information only. Zakat rulings are subject to scholarly disagreement. Consult a qualified Islamic scholar or mufti for binding guidance on your specific situation and local requirements.