SARS Medical Tax Credits (2026)
Medical tax credits can significantly reduce your tax liability in South Africa. Understanding how medical tax credits work, how to claim them, and how they're calculated helps you maximize your tax savings. This comprehensive guide covers everything you need to know about SARS medical tax credits for 2026.
What Are Medical Tax Credits?
Understanding Tax Credits
Definition:
- Tax credits for medical expenses
- Reduce tax liability directly
- Different from deductions
- Applied after tax calculated
Types:
- Medical scheme fees tax credit
- Additional medical expenses tax credit
- Different calculations
- Various eligibility
Key Point:
- Credits reduce tax directly
- More valuable than deductions
- Applied automatically
- Based on medical expenses
Medical Scheme Fees Tax Credit
What It Is
Definition:
- Credit for medical scheme contributions
- Based on monthly contributions
- Fixed credit amounts
- Applied automatically
2026 Rates:
- R364 per month for first member
- R364 per month for each additional dependent
- Maximum per family
- Annual credit calculated
How It Works
Calculation:
- Monthly credit × 12 months
- Applied against tax liability
- Reduces tax directly
- Non-refundable
Example:
- Family of 4 on medical scheme
- 4 × R364 = R1,456 per month
- Annual: R1,456 × 12 = R17,472
- Reduces tax by R17,472
Eligibility
Requirements:
- Must be registered medical scheme member
- Contributions paid
- Scheme registered with Council for Medical Schemes
- Valid membership
Who Qualifies:
- Medical scheme members
- Paying contributions
- Registered schemes
- Valid memberships
Additional Medical Expenses Tax Credit
What It Is
Definition:
- Credit for qualifying medical expenses
- Expenses not covered by medical scheme
- Subject to limits and calculations
- Complex calculation
Qualifying Expenses:
- Medical expenses not covered
- Qualifying disability expenses
- Out-of-pocket medical costs
- Other qualifying expenses
Calculation
Method:
- Complex calculation
- Based on age and expenses
- Different rates for different ages
- Subject to limits
Age Groups:
- Under 65: Different calculation
- 65 and older: Higher credit
- Based on qualifying expenses
- Subject to limits
Eligibility
Requirements:
- Qualifying medical expenses
- Not covered by medical scheme
- Proper documentation
- Meet calculation requirements
Documentation:
- Medical receipts
- Proof of expenses
- Medical scheme statements
- Other supporting documents
How to Claim Medical Credits
On Your Tax Return
Process:
- Complete tax return
- Medical scheme information pre-populated (if available)
- Enter additional expenses if applicable
- Credits calculated automatically
- Review and submit
Information Needed:
- Medical scheme tax certificate
- Qualifying expenses (if applicable)
- Supporting documents
- Other relevant information
Medical Scheme Tax Certificate
What It Shows:
- Contributions paid
- Medical scheme details
- Tax credit information
- Required for return
How to Get:
- From medical scheme
- Usually issued automatically
- Download from scheme portal
- Request if not received
Calculation Examples
Medical Scheme Credit Example
Scenario:
- Family of 3 on medical scheme
- Monthly contributions: R3,000
- Credit: 3 × R364 = R1,092 per month
- Annual credit: R1,092 × 12 = R13,104
- Reduces tax by R13,104
Additional Expenses Example
Scenario:
- Taxpayer under 65
- Qualifying expenses: R20,000
- Calculation based on formula
- Credit calculated
- Reduces tax further
Note: Actual calculation is complex and depends on various factors. Use eFiling calculator or consult tax practitioner.
Documentation Requirements
Required Documents
Medical Scheme:
- Medical scheme tax certificate
- Proof of contributions
- Scheme membership details
- Other relevant documents
Additional Expenses:
- Medical receipts
- Proof of expenses
- Medical scheme statements
- Other supporting documents
Record Keeping:
- Keep all documents
- Maintain for 5 years
- Organize properly
- Easy to access
Common Questions
How much is the medical tax credit?
For 2026, it's R364 per month for the first member and R364 for each additional dependent on a medical scheme.
Do I need to claim the medical scheme credit?
It's usually applied automatically if you're on a medical scheme, but verify it's included in your return.
Can I claim both credits?
Yes, you can claim both the medical scheme fees credit and the additional medical expenses credit if you qualify.
What expenses qualify for additional credit?
Qualifying medical expenses not covered by your medical scheme, subject to specific rules and limits.
Do I need receipts for medical scheme credit?
Usually not, as it's based on contributions. But keep your medical scheme tax certificate.
How do I get my medical scheme tax certificate?
Contact your medical scheme or download it from their online portal. It's usually issued automatically.
Best Practices
Keep Records
Maintenance:
- Keep medical scheme certificates
- Save medical receipts
- Organize documents
- Maintain for 5 years
Review Annually
Check:
- Verify credits applied
- Review calculations
- Ensure accuracy
- Claim all eligible credits
Understand Limits
Awareness:
- Know credit limits
- Understand calculations
- Maximize eligible credits
- Get professional advice if needed
Frequently Asked Questions
Is the medical tax credit refundable?
No, medical tax credits are non-refundable. They reduce your tax liability but won't result in a refund if your tax is already zero.
Can I claim medical expenses if I'm not on a medical scheme?
You may still qualify for additional medical expenses tax credit, but not the medical scheme fees credit.
How do I know if my medical scheme is registered?
Check with the Council for Medical Schemes or verify with your scheme. Only registered schemes qualify.
What if I change medical schemes during the year?
You can claim credits for both schemes based on the months you were a member of each.
Do medical tax credits change annually?
Yes, credit amounts may be adjusted annually in the budget. Check current year rates.
Conclusion
Medical tax credits can provide significant tax savings for South African taxpayers. By understanding how they work, keeping proper documentation, and claiming them correctly, you can maximize your tax benefits. Remember that credits are applied automatically for medical scheme members, but verify they're included in your return.
For assistance with medical tax credits or complex calculations, consult a qualified tax practitioner or use the SARS eFiling calculator.
Related Articles:
Official Resources:
