1. All possessions can be classified into either Zakatable or Non-zakatable wealth. For the purpose of Zakât calculation, Muslim scholars have established five categories of zakatable wealth:
   1. 1. Personal Zakatable Wealth: This includes money on hand and in bank accounts, stocks, and money held in retirement and pension accounts.
   2. 2. Business Zakatable Wealth: This is further classified in two categories:
      a. Trading goods that include business lists of goods in stock. 
      b. Exploited assets such as rented properties and factories.
   3. 3. Agricultural Produce: This, too, is further classified in two categories: a. Crops from irrigated land, wherein the irrigation system entails costs and labor. b. Crops from non-irrigated land watered by rain or natural springs.
   4. 4. Livestock: Animals raised for commercial purposes— primarily sheep, goats, cows, and buffaloes.
   5. 5. Treasure Troves (rikâz): This includes valuables that people have buried and l

The most common zakatable wealth is cash on hand and in banks, stocks, and retirement and savings funds. The amount of Zakât due on this wealth is 2.5 percent of its combined total value as of the annual Zakât due date.

1. Zakât is paid to deserving individuals who come under one or more of eight zakatable categories designated by God in the Quran. 
2. The eight categories of eligible Zakât recipients follow: 
   1. The poor (al-fuqarâ’) 
   2. The needy (al-masâkîn) 
   3. Zakât-workers 
   4. Those whose hearts are to be reconciled  
   5. Those in bondage (slaves and captives)  
   6. The debt-ridden 
   7. In the cause of God 
   8. The wayfarer (the stranded, or one traveling who lacks resources)

Those who collect and distribute the Zakât-Charity are crucial to the integrity of the community and the fulfillment of its worship. Thus they can be paid out of Zakât, according to the verse cited above. This indicates that Zakât collection and administration is the function of an organized body of paid employees. These workers can receive compensation from Zakât, regardless of whether they are poor or not. Moreover, the compensation should be competitive with the market value of their labor (Fiqh az-Zakât, 366, 373). If Zakât administration is performed by non-governmental agencies, they must specify to Zakât payers the percentage deducted for administrative fees.