Medical tax credits explained
If you pay for medical aid, SARS gives you a monthly tax credit that comes straight off your tax, and some out-of-pocket medical costs can reduce it further.
The monthly medical scheme fees credit
The medical scheme fees tax credit is a fixed amount per month for each person on your medical aid, deducted directly from the tax you owe (not from your income). For the 2026/27 tax year it is:
| Member | Credit per month |
|---|---|
| You (main member) | R 376 |
| First dependant | R 376 |
| Each additional dependant | R 254 |
A family of four on one medical aid gets R 376 + R 376 + R 254 + R 254 = R 1 260 a month, or R 15 120 a year off their tax. If your employer runs payroll, the credit is already built into the PAYE on your payslip. The credit goes to whoever pays the contributions, and it cannot be more than the tax you owe.
The additional medical expenses credit
On assessment, SARS can give a further credit for medical costs you paid yourself, such as co-payments, prescribed medicine and contributions above a certain level. The rules depend on your age and whether anyone in the family has a disability:
- Under 65, no disability: 25% of the amount by which your qualifying expenses, plus contributions above four times your monthly medical credits, exceed 7.5% of your taxable income.
- 65 or older: 33.3% of qualifying expenses plus contributions above three times your medical credits, with no income threshold.
- A person with a disability in the family: the same 33.3% rule as for people aged 65 and older.
In practice, many younger people with good health get no extra credit, because the 7.5% threshold is high. It helps most in years with large medical bills.
Claiming
Keep your medical aid tax certificate and receipts for medical costs not covered by the scheme. Most of the information is pre-filled on eFiling, but out-of-pocket expenses usually have to be added yourself.
Frequently asked questions
Can I claim the credit if I am not on medical aid?
No. The monthly credit needs contributions to a registered medical scheme. You may still claim some out-of-pocket costs as additional medical expenses.
Who gets the credit if my parents pay my medical aid?
The person who pays the contributions claims the credit, even if the member is someone else in the family.
Does gap cover count?
No. Gap cover and hospital plans that are not registered medical schemes do not qualify for the medical scheme fees credit.
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Open calculator →Credit amounts from SARS: Medical tax credit rates; rules from sections 6A and 6B of the Income Tax Act. Checked 16 October 2026. This guide is general information, not tax advice.