Calculating Zakat on U.S. Stock Ownership
Updated March 30, 2022
The above spreadsheet file assists investors in calculating the Zakat on publicly-traded U.S. stocks purchased with a long-term investing intention.
Calculation Method Explained
The calculation follows the simple premise that Muslims are obligated to pay 2.5% of untouched (unused) wealth, savings, or assets. Working capital assets (such as real estate property) used to generate revenue are not covered under Zakat's obligation. An investor needs to calculate their ownership portion of Assets that fall under the Zakat domain and donate 2.5% of that amount.
References & Resources
An important resource for this effort was Kuwait Zakat House's Zakat Encyclopedia, which compiles much information about paying Zakat, both in general and related to investments.