An overview of Zakah on olive oil and olives

والصَّلَاةُ والسَّلاَمُ عَلَى سَيّدِنَا مُحَمَّدٍ أَشْرَفِ اْلمُرْسَلِيْنَ وَعَلَى آلِهِ وَصَحْبِهِ الطَّيّبِيْنَ الطَّاهِرِيْن

An-Nawawiyy stated in Sharhu l-Muhadhdhab: “Ash-Shafi^iyy (may Allah accept his deeds) mentioned in his earlier opinion (al madh-habu l-qadim): ‘If one gives olives as zakah, it is permissible because they are storable. However, I prefer that one gives a tenth of the produce in the form of oil, as it represents the final stage of preservation.’”

The scholars narrated from Ibnu l-Marzubaniyy, one of our companions, that he mentioned two opinions regarding the permissibility of giving olives as zakah: some scholars permitted it, while others held that only olive oil should be given, not olives themselves.

Shaykh ‘Abu Hamid al-Ghazaliyy and the rest of the scholars deemed Ibnu l-Marzubaniyy’s view incorrect. They affirmed that the correct position, as explicitly stated in the earlier madh-hab, is the permissibility of giving either oil or olives, according to one’s preference.” End of quote.

An-Nawawiyy stated in Al-Majmu^: "The most reliable opinion among the scholars—explicitly affirmed by Ash-Shafi^iyy in his earlier madh-hab—is that one has the option to give either oil or olives as zakah, though giving oil is preferable, as explicitly stated."

As for the minimum threshold (nisab) at which zakah becomes obligatory, it is set at five ‘awsuq for olives according to the majority of scholars, differing from ‘Abu Hanifah’s view on crops and fruits. If the quantity of olives is less than five ‘awsuq, zakah is not due. However, if it reaches or exceeds five ‘awsuq, zakah becomes obligatory.

The evidence for this is the Hadith of the Messenger of Allah ﷺ:

“لَيْسَ فِيمَا أَقَلُّ مِنْ خَمْسَةِ أَوْسُقٍ صَدَقَةٌ” 

"There is no zakah on what is less than five ‘awsuq."

Narrated by Al-Bukhariyy and Muslim, with the wording from Al-Bukhariyy.

A wasq is equivalent to sixty sa^, and a sa^ consists of four mudds. A mudd corresponds to the amount held by two cupped, average-sized hands.

The determination of the nisab is based on the weight of the olives, not the oil. An-Nawawiyy (may Allah have mercy on him) stated: "If we follow the earlier opinion that zakah is obligatory on olives, then the nisab is calculated based on olives, not oil. This is the established position, decisively upheld by Al-Qadi Husayn and the majority of scholars. Imam Al-Haramayn reported a consensus among the scholars on this matter."

The amount of obligatory zakah on olives

The obligatory zakah is one-tenth (10%) if they are irrigated by rainwater. If the olives are irrigated by manual irrigation (water provided by the owner), then the zakah due is half of one-tenth (5%). This applies whether the zakah is given in the form of oil or olives; in both cases, a tenth (10%) must be given, either from the oil after pressing or from the olives themselves.

This is based on the Hadith of the Messenger of Allah ﷺ:

“فِيمَا سَقَتِ السَّمَاءُ وَالعُيُونُ أَوْ كَانَ عَثَرِيًّا العُشْرُ، وَمَا سُقِي بِالنَّضْحِ نِصْفُ العُشْرِ”

For that which is watered by rain or springs, or collected from rainwater, the zakah is a tenth. And for that which is irrigated with the owner's resources, the zakah is half a tenth. (Narrated by Al-Bukhariyy)

It is preferred and better to give the zakah in the same form as the produce. However, it is also permissible to discharge the zakah in its equivalent monetary value for the convenience of the people and the benefit of the poor, according to the Hanafi school of thought. This is stated in Al-Ikhtiyar li-ta^lili l-mukhtar: 'It is permissible to pay the zakah in its equivalent value.'"

And Allah knows best. All praise is due to Allah, the Lord of the worlds.