Key Takeaways
- Crypto is generally treated as zakatable wealth.
- Zakat on crypto is usually calculated at 2.5%.
- You must total your holdings across wallets and exchanges.
As Muslims around the world enter Ramadan in 2026, many are reviewing their finances ahead of Zakat season — but for a growing number, that includes assets beyond cash or savings accounts.
Bitcoin and Ethereum are increasingly becoming mainstream investments, raising a practical question for many Muslims: does crypto count as zakatable wealth — and if so, how do you calculate it?
What Is Zakat?
Zakat is one of Islam’s five pillars, a compulsory form of charity that eligible Muslims must pay each year during Ramadan on qualifying wealth above a minimum threshold, known as the nisab.
Traditionally, Zakat applies to liquid and tradable assets such as cash, gold, silver, business inventory and investment holdings.
The standard rate is 2.5%, paid once a lunar year has passed on eligible assets.
For many Muslims during Ramadan, Zakat is both a religious duty and a social safety mechanism, designed to redistribute wealth to those most in need.
Do You Need To Pay Zakat On Crypto?
In short, yes.
Many scholars and Islamic finance advisers treat crypto as a form of wealth similar to cash or tradable assets, meaning it is subject to Zakat if it meets the usual conditions.
In practice, most Muslims who hold crypto as an investment include it in their Zakat calculation — particularly if the holdings are easily accessible and have a clear market value.
The typical Zakat rate remains 2.5% of the amount that exceeds the nisab after allowable deductions such as legitimate debts.
How Do You Calculate Zakat on Bitcoin, Ethereum and Other Coins?
The key principle is valuation.
You calculate the total worth of your crypto on your Zakat anniversary date, not what you originally paid for it.
A practical approach usually involves:
- Reviewing every wallet and exchange account you control.
- Checking the market price of each coin on your Zakat date.
- Calculating the total value in your local currency.
- Combining that figure with your other eligible assets.
- Deducting any outstanding short-term debts.
If the final amount exceeds the nisab, 2.5% is due.
For example, if you own 0.8 BTC and the market price on your Zakat date is £35,000 per Bitcoin, your total holding would be worth:
0.8 × £35,000 = £28,000
If this amount is above the nisab threshold, you would calculate Zakat at 2.5%:
2.5% of £28,000 = £700
So you would pay £700 in Zakat on your Bitcoin holdings for that year.
If you actively trade crypto, Zakat calculations may also include:
- Coins you still hold.
- Profits that remain in your possession.
- Crypto that is staked or lent.
Coins that are permanently lost or inaccessible are generally excluded.
Where Does Your Crypto Zakat Go?
Some charities now offer dedicated support for crypto Zakat donors, including options to donate in crypto or in cash after conversion.
Global Helping Hands, just one example of a platform that offers help, says it directly helps donors calculate crypto Zakat.
From there, they direct funds to vulnerable families affected by conflict and poverty, including in Gaza, among Syrian refugees, and in Uganda.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
