Photo: Ossewa, Wikimedia Commons, CC BY 4.0Medical aid tax credit 2026/27
The amounts, who gets them and the additional credit
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The monthly amounts
From SARS's medical tax credit rates, updated on 25 February 2026 with the Budget:
| Who the fees cover | 2027 tax year (Mar 2026 – Feb 2027) | 2026 tax year | 2025 tax year |
|---|---|---|---|
| The taxpayer (or one dependant, if the taxpayer is not a member) | R376 | R364 | R364 |
| The taxpayer and one dependant (or two dependants) | R752 | R728 | R728 |
| Each additional dependant | R254 | R246 | R246 |
Worked out from these SARS amounts, a family of a main member, a spouse and two children on medical aid for the whole 2027 tax year gets R752 + 2 × R254 = R1,260 a month, or R15,120 for the year, off its income tax. The credit is applied month by month for each month the fees were paid.
Who gets the credit
- Every age. Since the switch from deductions to credits, the credit applies "irrespective of their age and whether or not they or their dependant(s) are persons with a disability" (SARS, §2.17).
- Paying for a parent. If you are not on medical aid yourself but pay the fees of a dependant who is — a parent, for example — you get the first-person credit (SARS, §2.17).
- Employer-paid fees. Contributions your employer pays for you are a taxable fringe benefit, but they are deemed paid by you for the credit (SARS, §2.17). Your payroll usually applies the credit through PAYE.
The additional medical expenses tax credit (section 6B)
Out-of-pocket medical costs that your scheme did not pay — co-payments, costs above the scheme rate, medicines, and so on — can earn a second credit. How much depends on your category (SARS, Taxation in South Africa 2026, §2.18):
| Category | Additional credit |
|---|---|
| Aged 65 or older | 33.3% of the medical aid fees above 3 × your monthly credits, plus 33.3% of qualifying out-of-pocket expenses |
| You, your spouse or your child has a disability (as defined in s 6B(1)) | Same as above: 33.3% of fees above 3 × the credits, plus 33.3% of qualifying expenses |
| Everyone else | 25% of the amount by which [fees above 4 × the credits + qualifying expenses] exceeds 7.5% of taxable income |
SARS's own example, from Taxation in South Africa 2026 (2026 tax year, under 65): fees of R22,800, minus 4 × R4,368 of credits = R5,328; plus R30,000 of qualifying expenses = R35,328; minus 7.5% of a taxable income of R410,000 (R30,750) = R4,578; 25% of that = an additional credit of R1,144.50.
A second SARS example (same guide, 2026 tax year): a taxpayer aged 66 who is not on medical aid and paid R13,800 of qualifying medical expenses gets an additional credit of 33.3% × R13,800 = R4,595.40, with no income threshold — because the 7.5% rule applies only to the "any other case" category.
The detailed rules — what counts as a qualifying expense and how a disability is confirmed — are in SARS's Guide on the Determination of Medical Tax Credits (IT07).
How to claim it
- Employees: give your employer your medical aid details and the number of dependants; the monthly credit is then applied in your PAYE.
- At filing season: your scheme sends a tax certificate for the tax year. Check the months, the dependants and the fees on it against your return.
- Out-of-pocket costs: keep invoices and proof of payment for every expense the scheme did not pay; they support the additional credit on assessment.
How medical aid works, waiting periods and late-joiner penalties: medical aid in South Africa. What your scheme must pay in full: prescribed minimum benefits. Covering the gap between the scheme rate and the specialist's fee: gap cover.
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Frequently asked questions
What is the medical aid tax credit for 2026/27?
For the 2027 tax year (1 March 2026 to 28 February 2027): R376 a month for the taxpayer, R752 for the taxpayer and one dependant, and R254 for each additional dependant (SARS, rates updated 25 February 2026).
What was the medical tax credit in 2026?
For the 2026 tax year (1 March 2025 to 28 February 2026) it was R364 for the taxpayer, R728 with one dependant and R246 for each additional dependant — unchanged from the 2025 tax year.
Do pensioners get a bigger medical tax credit?
The monthly credit is the same at every age. Taxpayers aged 65 or older get a larger additional credit: 33.3% of fees above three times their credits plus 33.3% of qualifying out-of-pocket expenses, with no 7.5%-of-income threshold.
Can I claim the tax credit for my parents' medical aid?
Yes, if your parent is your dependant and you pay the fees. If you are not a member yourself, you get the first-person amount (R376 a month in the 2027 tax year).
Is the medical tax credit a deduction?
No. Since 1 March 2012 (1 March 2014 for taxpayers aged 65 or older) it is a credit deducted from the tax you owe, not from your income (SARS medical tax credit rates page).
Does gap cover qualify for the medical tax credit?
No. The credit applies to fees paid to a medical scheme registered under the Medical Schemes Act. Gap cover is an insurance policy.