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⚡ Quick Answer
Zakat is obligatory for Muslims in Malaysia who hold savings or income above the nisab threshold (roughly RM23,000–RM26,000 per year depending on your state) for a full Islamic lunar year. The rate is 2.5% on your zakatable wealth. You can pay online via your state’s e-Zakat portal, TNG eWallet, or MAE — and the full amount qualifies as a 100% tax rebate on your LHDN income tax.
What Is Zakat and Who Must Pay It?
Zakat is one of the five pillars of Islam — an annual obligation to purify your wealth by distributing a portion to those in need. In Malaysia, it is administered by state Islamic Religious Councils (MAIN), and every Muslim is expected to self-assess and pay accordingly.
You are obligated to pay zakat if you meet all four conditions:
- Muslim — only applies to Muslims
- Free individual of sound mind (aqil baligh)
- Full ownership (milku al-tam) — the wealth is wholly yours
- Nisab and haul met — your wealth has exceeded the minimum threshold for one full Islamic lunar year (~354 days)
Non-Muslims are not subject to zakat. If you are a Muslim but your savings have never crossed the nisab threshold in the past year, zakat is not compulsory for that period.
Types of Zakat in Malaysia
There are several categories of zakat, but these are the ones most relevant to everyday Malaysians:
| Type | Who It Applies To | Rate |
|---|---|---|
| Zakat Pendapatan (Income) | Salaried employees & self-employed | 2.5% of net income above nisab |
| Zakat Simpanan (Savings) | Anyone with savings above nisab held for a full haul | 2.5% of total savings |
| Zakat Perniagaan (Business) | Business owners | 2.5% of net business assets |
| Zakat Emas & Perak (Gold & Silver) | Those holding physical gold or silver above nisab | 2.5% |
| Zakat Fitrah | All Muslims alive at end of Ramadan | Fixed rate per person (~RM7–RM22 depending on state) |
Most working Malaysians will deal with Zakat Pendapatan and/or Zakat Simpanan. Zakat Fitrah is separate and simpler — it’s a fixed amount per head paid before Eid prayers.
Nisab Threshold for 2026: How Much Is It?
The nisab is the minimum amount of wealth you must hold before zakat becomes obligatory. It is pegged to either the price of 85 grams of gold (for savings/business zakat) or 595 grams of silver (used for income zakat in most states).
As of 2026, approximate nisab thresholds set by major state zakat bodies are:
| State / Body | Nisab (Annual Income) | Nisab (Monthly) |
|---|---|---|
| MAIWP (Kuala Lumpur) | ~RM24,500 | ~RM2,042 |
| Selangor (MAIS) | ~RM24,200 | ~RM2,017 |
| Johor (MAINJ) | ~RM23,800 | ~RM1,983 |
| Penang (MAINPP) | ~RM24,000 | ~RM2,000 |
Important: These are estimates based on current silver spot prices. Always verify the exact nisab figure on your state’s official zakat website before calculating, as it updates periodically.
How to Calculate Zakat Pendapatan (Income Zakat)
The most common method used in Malaysia for income zakat is the Annual Surplus Method:
Formula:
Zakatable income = Gross Annual Income − Allowable Deductions
Zakat Payable = Zakatable Income × 2.5%
Allowable deductions (varies slightly by state, but generally includes):
- Personal living expenses (typically 12 × nisab rate per dependent)
- EPF contributions (employee share)
- SOCSO/EIS contributions
- Housing loan instalments (principal portion)
- Education expenses for dependents
Example Calculation
Ahmad earns RM5,000/month (RM60,000/year). He has a wife and 2 children, pays RM600/month EPF, and RM180/month on housing loan principal.
- Gross income: RM60,000
- Less personal deduction (self): RM8,000
- Less spouse deduction: RM3,000
- Less 2 children deduction: RM2,000
- Less EPF: RM7,200
- Less housing loan principal: RM2,160
- Zakatable amount: ~RM37,640
- Zakat payable (2.5%): ~RM941
Use your state’s official zakat calculator for precision — MAIWP, Selangor, Johor, and Penang all have free online calculators on their portals.
How to Calculate Zakat Simpanan (Savings Zakat)
Zakat on savings applies if your total savings have been above the nisab threshold for a full haul (12 Islamic months). It covers:
- Savings accounts and fixed deposits
- Cash in hand
- Money market funds and cash management apps (e.g. Versa, KDI Save)
- ASB / unit trust holdings (some states require zakat on ASB — check your state’s ruling)
Formula:
Zakat = Total Savings × 2.5%
If you have RM50,000 in savings, your zakat would be RM1,250. If you have already paid Zakat Pendapatan, you may offset — check with your state’s zakat body to avoid double-payment.
One smart approach: keep your emergency fund and short-term savings in a high-yield account so your money works harder before zakat is due. Apps like Versa (use code 7DP9797J to claim RM10) let you earn competitive returns on your ringgit while maintaining full liquidity.
Where to Pay Zakat in Malaysia 2026
You must pay to your state of residence’s zakat body, not just any zakat institution. Here are the main portals:
| State | Zakat Body | Website |
|---|---|---|
| Kuala Lumpur / Putrajaya | MAIWP (Pusat Pungutan Zakat) | ppz.gov.my |
| Selangor | LZS (Lembaga Zakat Selangor) | e-zakat.com.my |
| Johor | MAINJ | zakat.johor.gov.my |
| Penang | MAINPP | zakat.penang.gov.my |
| Kedah | MAIK | zakat.kedah.gov.my |
| Perak | MAIP | zakatperak.gov.my |
| Negeri Sembilan | MAINS | zakat.ns.gov.my |
Payment Channels
Most state zakat portals accept payment via:
- FPX / online banking (Maybank2u, CIMB Clicks, etc.)
- TNG eWallet — search “Zakat” under Bills & Payments
- MAE app — available under Maybank’s bill payment section
- Counter payment at state zakat offices or selected bank branches
- Salary deduction — if your employer offers it through the zakat body’s eDDIBITI scheme
Zakat as a Tax Deduction: How It Works
This is something many Malaysians miss: zakat is not just a tax relief — it is a direct tax rebate. That means it reduces your actual tax payable ringgit-for-ringgit, not just your chargeable income.
Under Section 6A(3) of the Malaysian Income Tax Act:
- Zakat paid to your state’s official zakat body is a 100% rebate against income tax payable
- Maximum rebate: capped at the total tax payable for that year (zakat cannot result in a negative tax liability — you just pay RM0)
- Only applicable to resident individuals filing personal income tax
Example: How Much You Save on Tax
If your income tax payable is RM3,200 and you paid RM1,500 in zakat, your actual tax payable drops to RM1,700. That’s a full RM1,500 reduction — not 10–30% like most reliefs.
When filing on MyTax, enter your zakat payment under “Rebat Zakat/Fitrah” (not under relief). You’ll need the official receipt from your state’s zakat body.
Common Mistakes to Avoid
- Paying to the wrong state body — you must pay to the state where you reside, not where you work
- Double-counting income and savings zakat — if you’ve already paid income zakat on money that’s now in savings, check whether your state allows an offset
- Forgetting to keep receipts — required for the MyTax rebate claim
- Paying Zakat Fitrah late — it must be paid before Eid Solat; paying after makes it sadaqah, not zakat
- Ignoring ASB holdings — some states require zakat on ASB dividends; others don’t. Confirm with your state.
Our Recommendation
If you’re a salaried Muslim in Malaysia, use your state’s official online calculator to compute your Zakat Pendapatan first — it takes about 5 minutes. Pay via TNG eWallet or FPX for instant confirmation and a digital receipt.
For Zakat Simpanan, review your savings balance at the end of each Islamic year. Keep a record of when your savings crossed the nisab so you can establish the correct haul start date.
Most importantly: claim your tax rebate when filing with LHDN. Many Malaysians pay zakat faithfully but forget to enter it correctly in MyTax — and end up paying more income tax than they need to.
Frequently Asked Questions
Can non-Muslims pay zakat?
No. Zakat is an Islamic obligation and only applies to Muslims. Non-Muslims do not pay zakat but may make voluntary sadaqah (charity) donations.
Is zakat the same as income tax?
No — they are separate obligations. Zakat is a religious duty; income tax is a government levy. However, zakat paid to an official state body reduces your income tax payable by the same amount (up to the full tax amount). You can think of zakat as “tax you pay to Allah first, then the government gives you credit for it.”
Do I pay zakat on money in ASB?
This depends on your state. MAIWP (KL) rules that zakat applies to ASB principal held for a full haul. Some other states exempt it or allow ASB to handle zakat deductions directly. Check your state’s fatwa ruling or call the zakat authority.
What happens if I don’t pay zakat?
Zakat is a religious obligation — not paying is considered a sin in Islam. However, there is no criminal penalty under Malaysian civil law. The state can pursue it under Syariah law, though enforcement is rare. Practically, the bigger concern is missing out on the tax rebate and the spiritual obligation.
Can I pay zakat monthly instead of a lump sum?
Yes. Most state zakat bodies accept monthly instalments via salary deduction or direct debit. MAIWP and LZS Selangor both offer this. Monthly payments are valid as long as the full annual amount is settled within the haul year.
Do I pay zakat on my EPF savings?
EPF savings are generally exempt from zakat because you do not have full ownership of the funds — you cannot freely withdraw them. Once you withdraw from EPF, those funds may then become subject to zakat if they remain in your possession above the nisab for a haul.
