How it works
Medical aid and tax: medical tax credits explained
By Naledi Mokoena · 5 min read · Updated 24 June 2026
- Type
- Tax rebate (reduces tax payable), not an income deduction
- Part 1
- Medical Scheme Fees Tax Credit (fixed monthly per member and dependant)
- Part 2
- Additional Medical Expenses Tax Credit (for high out-of-pocket spend)
- Claimed via
- SARS annual income tax return (sars.gov.za)
If you belong to a medical scheme, SARS gives you a medical tax credit that reduces the income tax you pay, made up of a fixed monthly credit for scheme membership plus a further credit for high out-of-pocket and extra contributions. The credit is a rebate against tax owed, not a deduction from income, and it is claimed through your annual tax return.
Many people overpay tax by not claiming their full medical credits. This guide explains the two parts of the credit, who qualifies, and how to claim, without quoting specific rand amounts that change each tax year - always check the current figures on the SARS website.
The Medical Scheme Fees Tax Credit
This is a fixed monthly amount you get for belonging to a registered medical scheme, with a set amount for you as the main member, the same for the first dependant, and a smaller amount for each additional dependant. It applies regardless of your income. The exact rand amounts are set by SARS each tax year, so check the current figures on sars.gov.za. The credit reduces the tax you owe, rand for rand.
The Additional Medical Expenses Tax Credit
This second credit covers contributions above a threshold and qualifying out-of-pocket medical costs your scheme did not pay. How it is calculated depends on your age and whether you or a dependant has a disability:
- Under 65 with no disability: a portion of qualifying excess, above an income-linked threshold
- 65 and over, or with a disability: a more generous percentage of qualifying expenses
Keep records of all out-of-pocket medical spending to claim this.
Who qualifies
You qualify for the Medical Scheme Fees Tax Credit if you are the person who pays the contributions to a registered medical scheme for yourself or your dependants. If your employer deducts the contribution, the credit is usually already applied to your monthly PAYE. The additional credit is worked out when you file your return, based on your total qualifying expenses.
How to claim
Most of the main credit is applied automatically through your payroll if your employer runs the medical aid. To claim the additional medical expenses credit and reconcile everything:
- Get your medical aid tax certificate (the scheme issues one each tax year).
- Gather receipts for out-of-pocket medical costs the scheme did not cover.
- Capture the totals on your SARS annual return.
SARS then calculates your final credit. If you paid the contributions yourself, the certificate is essential evidence.
Frequently asked questions
What is a medical tax credit?
It is a rebate from SARS that reduces the income tax you pay because you belong to a medical scheme. It has a fixed monthly part per member and dependant, plus an additional part for high out-of-pocket spend.
How does the medical scheme fees tax credit work?
It is a fixed monthly amount for the main member, the same for the first dependant, and a smaller amount per extra dependant. It reduces your tax owed and applies regardless of income. Check current amounts on sars.gov.za.
Do I claim medical tax credits myself?
If your employer runs your medical aid, the main credit is usually applied to your PAYE automatically. You claim the additional medical expenses credit, and reconcile everything, on your annual SARS return.
What is the additional medical expenses tax credit?
It is a further credit for contributions above a threshold and qualifying out-of-pocket costs the scheme did not pay. People 65 and over, or with a disability, get a more generous calculation.
What documents do I need to claim?
Your medical aid tax certificate for the tax year and receipts for out-of-pocket medical costs the scheme did not cover. Capture the totals on your SARS return so it can calculate your credit.
Can I claim if I pay for a dependant's medical aid?
Yes. If you pay the contributions for dependants on a registered scheme, you can claim the credit for them. Keep the tax certificate and proof of payment as evidence for SARS.
