Damage with Smite:

Total Smite Damage = [Shield Base Dmg + Holy Shield Bonus ] * [1 + Stat Bonus by Weapon (1) + Smite Dmg Bonus + Fanaticism Dmg Bonus + Total ED% on Gear (2)

(1) This bonus depends on the weapon you are using and on your stats. Daggers have a 75 Str / 75 Dex bonus. This means, for every point in Strength or Dexterity, you gain 0,75% ED. (example: A Dagger, 200 Str, 150 Dex gives you (200* 0,75 + 150 * 0,75 = ) 262,5% ED). Almost all the other weapons have 100 Str bonus, meaning that they give 1% ED with each point in Strength (example: A Sword, 200 Str, 150 Dex gives you (200* 1,00 = ) 200% ED).
To summarize this: Daggers will probably work best for Pala’s pumping both Dex. and Str. For a Str-only Pala, or someone with very little Dex, another weapon will work better. Just keep in mind that this bonus is relatively small, considering that lvl 20 Fana + Smite gives you 673% ED already.

(2) This are all the sources on ED on all your gear, except on your weapon. Where the ED% comes from, is not important. Even the ED% on your shield (automod / socket) is only acting as ‘extra’ ED%, instead of working on your base shield damage. The ED% to Demons / Undead also belongs here.

Things do and do not work with Smite in alphabetical order:

Attack Rating: Is not needed, Smite auto-hits.

Chance to cast spell by %: Works on the Realm, not on single player

Crushing Blow: Works (works too when it comes from your weapon)

Deadly Strike: Does unfortunately not work

Elemental Damage anywhere: Does not work

Enhanced Damage on Weapon: Does not work

Enhanced Damage on Everything else: Does work

Enhanced Damage to Demons / Undead: Seems to work.

Freezes Target: Does work, and it might be useful if you are annoyed by the KB effect of Smite, since freezed monsters will not be knocked back.

Hit blinds Target: Works. Might be useful as Smite knocks the blinded creatures out of range, making them just sit there while blinded.

Hit causes Monster to Flee %: Works, but Smite’s stun length will probably be longer than the duration of the fear-effect, so no real use.

Holy Shock Damage: Does not work

ITD on Weapon: Don’t bother, Smite has inherent ITD, so it automatically hits 95%.

Life Leech: Does not work (Check Life Tap if you really need Life Leech)

Life Tap: Does work. Use a wand or dagger for charges of it, or ask your friendly neighbour Necro.

Mana Leech: Does not work

Max / Min Damage: Does not work, not from Charms, nor from other gear(example: Wartravelers, sockets)

Open Wounds: Does not work

Slows Target %: Does work

Sanctuary vs. PI undead

Sanctuary sets the physical resistance on all the undead in the area of the skill to 0 (zero) at the moment you select this skill. You don’t have to wait for the aura to activate or pulse. This makes you capable of killing Physical Immumes, which you otherwise couldn’t. The % ED on Sanctuary does work with Smite.

from AB by diff pplz