Who is obligated to pay Zakat?

Zakat becomes obligatory on a sane, adult Muslim who owns wealth at or above the Nisab (minimum threshold) for a full lunar year, where that wealth is of a Zakat-able type such as cash, gold, silver, trade goods, or business assets. It is not owed on a person's primary home, personal-use car, furniture, or other items used for personal need rather than held as wealth. Zakat is calculated on qualifying wealth still held at the end of the lunar year, typically at a rate of 2.5%.