What property is zakatable and what are the zakat rates?
One must pay zakat annually on the following items held for at least one lunar year:
Gold and Silver: Gold exceeding 87.479 grams (about 0.2 lbs) at 2.5% (or 1/40th), in gold or its cash equivalent; Silver exceeding 613.35 grams (about 1.35 lbs) at 2.5%, in silver or its cash equivalent; includes all forms of gold and silver jewelry;
Cash and other exchangeable monetary instruments exceeding the equivalent of the silver nisab at 2.5% (including savings and stocks);
Tradable goods: Tradable goods such as stocks, inventory and merchandise for resale that exceed the equivalent of the silver nisab at 2.5% if the goods were bought with silver or a monetary instrument (e.g. cash, stock, goods); or exceeding the equivalent of the gold nisab at 2.5% if the goods were bought with gold;
Agricultural products: Most scholars say that there is no Zakah due on plants or fruits until they attain the amount of five Wasaqs. Five Wasaqs equal, according to the majority of scholars, 651.4 kg. Zakah is due on plants when the grains mature and are ready to be rubbed off and on the fruit when it is ripened. The rate of Zakah differs according to the method of irrigation. If it is watered naturally without the use of artificial means, then the due Zakah is 10 % of the harvest. However, if it is irrigated by machinery or with purchased water, then the Zakah payable is 5 % of the harvest.
Animals and livestock: equal to or exceeding 40 head of sheep and goat, 30 head of cattle or 5 head of camel.
Nisab is measured either 1) separately (for gold, silver, cash, stocks, and other exchangeable monetary instruments, and trade goods), by measuring the nisab separately for each zakatable category; or 2) if individual measures fall below the nisab amount, it is obligatory to combine individual measures from each category (of gold, silver, and so on) to determine the total amount of zakatable property; livestock is always measured separately.
Zakat is only obligatory on property possessed for at least one lunar year, though if during the year while the value of the property exceeds the nisab and more property which is held for less than one year is added to the original amount, zakat is paid on the new amount (i.e. zakat is paid on the original property held for one year plus new property held for less than one year).