Zakat is categorized into two main types based on recipients and applicable wealth. These categories ensure effective distribution.

1. Zakat al-Mal (Wealth Zakat)

• Rate: 2.5% of total wealth held for one lunar year. 
• Eligibility: Wealth must exceed the nisab threshold (85 grams of gold or 595 grams of silver).
• Assets Covered: Savings, investments, rental income, business inventory, agricultural produce, and livestock.

2. Zakat al-Fitr (Fitrana – Charity at the End of Ramadan)

• Amount: A fixed sum based on staple food prices (e.g., dates, wheat, or rice).
• Purpose: Purifies fasting and ensures the poor can celebrate Eid.
• Payment Time: Before the Eid al-Fitr prayer.

3. Zakat on Agriculture (Crops & Produce)

• Rate: 10% for naturally irrigated land. 5% for artificially irrigated land.

4. Zakat on Business (Trade and Commerce)

• Rate: 2.5% on total business assets and profits.
• Includes: Inventory, goods for sale, and business earnings.

5. Zakat on Livestock 

• Applicable to: Camels, cows, sheep, and goats.
• Rate: Depends on the number of animals owned.