Guide · Zakat
Zakat deduction, explained
Once a year, banks deduct zakat from savings accounts across Pakistan. Here is when it happens, who it applies to, and why the threshold changes every year.
What happens on the first of Ramzan
Under the Zakat and Ushr Ordinance 1980, banks in Pakistan deduct zakat at 2.5% of the balance in savings and similar accounts on the first day of Ramzan each year — but only if the balance on that day is at or above the year's nisab threshold. If your balance is below the nisab, nothing is deducted.
Why this page does not print a nisab figure
The nisab is announced fresh every year by the government (it is linked to the value of silver), and it changes. A page that printed last year's number as if it were this year's would mislead people about a religious obligation and a real deduction. Check the current year's nisab in the official announcement, carried by the State Bank and national newspapers shortly before Ramzan.
Things worth knowing
- Which accounts: deduction applies to savings accounts and similar deposit products. Current accounts are not subject to this deduction.
- Opting out: a Muslim account holder who follows a school of thought under which they pay zakat themselves can file a declaration (Form CZ-50) with the bank before the deduction date, and no zakat will be deducted. Non-Muslims and certain exempt persons and organisations are outside the deduction.
- Zakat and income tax are separate: zakat deduction is not income tax, and it is not part of the salary tax this site calculates — it happens on bank balances, not on your payslip. Zakat you pay can be claimed as a deductible allowance when computing your taxable income for the year, which your return preparer can apply.
General information only. The nisab for the current year, and whether your account or status is exempt, should be confirmed from the official announcement or your bank. Last checked 4 November 2026.