Calculators & guides
Medical tax credit guide: how to claim it from SARS
By Naledi Mokoena · 6 min read · Updated 24 June 2026
The medical tax credit is a rebate from SARS that reduces the tax you owe for belonging to a medical scheme. It has two parts: the medical scheme fees tax credit, a fixed monthly amount per member, and an additional medical expenses tax credit for high out-of-pocket and excess contribution costs.
This guide explains both, who qualifies, and how to claim them on your tax return.
Most members get the scheme fees credit automatically through payroll, but the additional credit usually only comes back when you file your return.
The medical scheme fees tax credit
This is the main credit. It is a fixed monthly amount that SARS sets each tax year:
- A set amount for you, the main member.
- The same set amount for the first dependant.
- A smaller set amount for each additional dependant.
It is a credit, not a deduction, so it reduces your tax owed Rand for Rand. If your employer runs your medical aid through payroll, you usually receive it monthly already.
The additional medical expenses credit
The second part covers out-of-pocket medical costs and contributions above a threshold. It works differently depending on your situation:
- If you are 65 or older, or you (or a dependant) have a disability, a larger portion of qualifying expenses converts to a credit.
- If you are under 65 with no disability, only the amount above a percentage-of-income threshold counts, which means most people only benefit in a high-expense year.
Keep every receipt for medicine, dentistry and other costs your scheme did not cover.
Who can claim
You can claim the scheme fees credit if you are the person who pays the medical scheme contributions, for yourself and your registered dependants. You cannot claim for a scheme you do not pay for. If a family member pays your contribution, they claim the credit, not you. Pensioners and members with a disability often qualify for a larger additional credit.
How to claim on your return
- Get your medical scheme tax certificate (issued after the tax year, showing contributions and any claims you paid).
- Log in to SARS eFiling and open your ITR12 return.
- Enter the number of months of cover and the number of dependants for the scheme fees credit.
- Enter your contributions and out-of-pocket medical expenses for the additional credit.
- Keep your certificate and receipts for five years in case SARS asks.
The certificate from your scheme is the document SARS works from, so request it each year.
Common mistakes
- Forgetting the additional credit, and leaving high out-of-pocket costs unclaimed.
- Claiming for contributions someone else actually pays.
- Not keeping receipts for medicine and treatment the scheme did not cover.
- Assuming the credit is a deduction; it reduces tax owed directly, which is usually better.
If in doubt, your scheme's tax certificate and the SARS eFiling wizard guide you through it.
Frequently asked questions
What is the medical tax credit?
It is a SARS rebate that reduces the tax you owe for belonging to a medical scheme. It has two parts: a fixed monthly medical scheme fees credit per member, and an additional credit for high out-of-pocket and excess contribution costs.
How do I claim the medical tax credit?
Get your medical scheme tax certificate, log in to SARS eFiling, and complete the medical section of your ITR12. Enter your months of cover, dependants, contributions and out-of-pocket expenses. Keep the certificate and receipts for five years.
Is the medical tax credit a deduction or a rebate?
It is a credit, also called a rebate, not a deduction. It reduces the tax you owe Rand for Rand, which is usually more valuable than a deduction that only reduces taxable income. This is why it benefits lower earners proportionally more.
Who can claim the credit?
The person who actually pays the medical scheme contributions, for themselves and registered dependants. If someone else pays your contribution, they claim it, not you. You cannot claim for a scheme you do not personally fund.
Do pensioners get a bigger medical tax credit?
Members aged 65 and older, and those with a disability, qualify for a more generous additional medical expenses credit, where a larger share of out-of-pocket costs converts to a credit. This is one of the few age-based tax advantages in South Africa.
Where do I get my medical scheme tax certificate?
Your medical scheme issues it after the tax year, usually by email or on the member portal. It shows your contributions and the amounts you paid that the scheme did not cover. SARS uses it to verify your claim, so request it each year.
