The minimum wealth threshold that can make a Muslim liable for zakat is called nisab.
Zakat is not assessed on every amount of property or money. In general, a person’s qualifying wealth must reach nisab and remain above it for a lunar year, known as a hawl, for many forms of wealth. The threshold is intended to distinguish basic financial need from surplus wealth.
Classical discussions connect nisab to set quantities of gold and silver. Contemporary Muslim scholars and institutions may calculate the threshold using the market value of either standard, and practices can differ. Debts, personal needs, and asset categories may also affect the calculation.
Nisab is not the same as the zakat rate. Nisab determines whether the obligation applies, while the commonly cited rate for qualifying monetary wealth is 2.5 percent. It is also unrelated to miqat, the boundary associated with entering the pilgrimage state.