Medical aid tax credit calculator (2026/27)
The SARS medical credits worked out
| You (the member who pays) | R376 |
| First dependant | R376 |
| Monthly credit | R752 |
| × 12 months | R9,024 |
Add the additional medical expenses credit (out-of-pocket costs)
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Indicative. The credits reduce the tax you owe but are not paid out: anything above your tax for the year is lost. SARS works out the final amount on assessment, from the tax certificate your medical scheme issues.
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The medical scheme fees tax credit (MTC)
The MTC is a fixed monthly amount that reduces the normal tax of the person who pays the medical scheme contributions, for themself and their dependants. It is non-refundable: what exceeds your tax for the year is lost, not carried forward (SARS).
| Per month | 2026/27 | 2025/26 |
|---|---|---|
| The taxpayer (or one dependant who is a member, if the taxpayer is not) | R376 | R364 |
| The taxpayer and one dependant (or two dependants) | R752 | R728 |
| Each additional dependant | R254 | R246 |
Rates from the SARS Medical Tax Credit Rates page, updated on 25 February 2026 with the Budget. If you are employed, your employer already deducts the MTC when it calculates your PAYE; pensioners and the self-employed claim it in their annual return (SARS).
The additional medical expenses tax credit (AMTC)
The AMTC is a second credit for scheme fees that are high compared with the MTC and for qualifying medical expenses you paid and could not recover: doctors, dentists, hospital, registered nurses, medicines prescribed and bought from a pharmacist, and disability-related costs on the SARS list (SARS). Its formula depends on who you are:
| Who | AMTC |
|---|---|
| 65 or older | 33.3% × (scheme fees − 3 × MTC) + 33.3% × qualifying expenses |
| You, your spouse or your child has a disability | 33.3% × (scheme fees − 3 × MTC) + 33.3% × qualifying expenses |
| Everyone else | 25% × [(scheme fees − 4 × MTC) + qualifying expenses − 7.5% of taxable income] |
Taxable income here excludes retirement fund lump sums and severance benefits, and is taken before the AMTC itself (SARS).
Worked examples
- Family of four, all year, 2026/27: R376 + R376 + 2 × R254 = R1,260 a month, so R15,120 of MTC for the year.
- Same family, under 65: scheme fees R96,000 a year, R30,000 of out-of-pocket qualifying expenses, taxable income R400,000. Fees above 4 × R15,120 (R60,480) = R35,520; plus R30,000 = R65,520; minus 7.5% of R400,000 (R30,000) = R35,520; × 25% = R8,880 of AMTC. Total medical credits: R24,000.
- Pensioner aged 67, alone on the scheme: MTC R376 × 12 = R4,512. Fees R48,000 − 3 × R4,512 (R13,536) = R34,464 × 33.3% = R11,476.51, plus 33.3% of R10,000 expenses = R3,330, so R14,806.51 of AMTC on top of the MTC.
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Frequently asked questions
What is the medical aid tax credit for 2026?
For the 2026/27 tax year (from 1 March 2026), R376 a month for the main member, R376 for the first dependant and R254 for each additional dependant (SARS, 25 February 2026). For 2025/26 it was R364, R364 and R246.
How is the medical tax credit calculated?
Add R376 for you, R376 for the first dependant and R254 for each other dependant, then multiply by the months you paid contributions in the tax year. The total reduces your normal tax.
Do I get the medical tax credit if my tax is lower than the credit?
Only up to the tax you owe. SARS says the credit is non-refundable and the unused part cannot be carried over to the next year.
Can I claim the medical credit if I pay medical aid for my parents?
Yes, if they are your dependants under the SARS definition — which includes family members you are liable to support — and you pay the contributions. If you are not a member yourself, the first rate applies to the first dependant who is a member.
Can I claim out-of-pocket medical expenses?
Yes, through the additional medical expenses tax credit: 33.3% of them if you are 65 or older or a person with a disability is in your immediate family; otherwise 25% of the amount by which they (plus high scheme fees) exceed 7.5% of your taxable income.