How it is calculated
Zakat on income is 2.5% of annual income that meets the nisab. The nisab is the value of 85 g of gold, set by each state authority and updated regularly. The 2026 Federal Territory nisab is RM33,996 (PPZ-MAIWP).
There are two methods:
- Gross: all annual income × 2.5%.
- Net: (income − allowed deductions) × 2.5%. Deductions differ by state; for example, Johor uses fixed personal, spouse and child amounts, while Selangor and the Federal Territory use had kifayah amounts by household member.
Zakat is due only if the assessed income is equal to or above the nisab. Zakat paid to an authorised body reduces income tax ringgit-for-ringgit as a rebate, up to the tax payable.
Worked example
Examples from PPZ-MAIWP (via RinggitPlus):
- Gross method: income of RM57,000 × 2.5% = RM1,425 a year (RM118.75 a month).
- Net method: RM57,000 − RM21,810 = RM35,190, so zakat is RM879.75.
Why your number may differ
Your state’s nisab and deduction schedule may be different. The income types included also vary, and the Hijri year is not the same as the Gregorian year.