If you belong to a medical aid scheme in South Africa, you are entitled to medical tax credits that directly reduce your tax liability. Unlike tax deductions which reduce your taxable income, tax credits reduce the actual tax you owe — making them particularly valuable regardless of your tax bracket.
How Medical Tax Credits Work
Medical tax credits in South Africa come in two forms: the Medical Scheme Fees Tax Credit (section 6A) and the Additional Medical Expenses Tax Credit (section 6B). The first is a fixed monthly credit based on the number of members on your medical aid. The second provides relief for out-of-pocket medical expenses that exceed a certain threshold.
Medical Scheme Fees Tax Credit (Section 6A)
For the 2024/2025 tax year, the monthly credits are:
- Main member: R364 per month
- First dependant: R364 per month
- Each additional dependant: R246 per month
These credits are applied annually. For example, if you are the main member with one dependant, your annual medical tax credit is (R364 + R364) x 12 = R8,736. This amount is subtracted directly from your income tax liability.
Examples of Annual Medical Tax Credits
- Single person: R364 x 12 = R4,368
- Couple: (R364 + R364) x 12 = R8,736
- Family of four: (R364 + R364 + R246 + R246) x 12 = R14,640
Additional Medical Expenses Tax Credit (Section 6B)
If your out-of-pocket medical expenses (those not covered by your medical aid) are significant, you may qualify for an additional tax credit. The calculation differs based on your age:
If you are 65 or older (or have a disability)
You can claim 33.3% of all qualifying medical expenses paid by you that were not recovered from your medical aid, plus 33.3% of medical scheme contributions that exceed three times the section 6A credit.
If you are under 65
You can claim 25% of qualifying medical expenses that exceed 7.5% of your taxable income (before medical deductions). This makes it harder for younger, higher-earning taxpayers to claim, but significant medical expenses can still provide a benefit.
What Counts as Qualifying Medical Expenses?
SARS accepts a wide range of medical expenses, including:
- Doctor, specialist, and dentist consultations
- Prescribed medication
- Hospital stays and procedures
- Physiotherapy, optometry, and other allied health services
- Medical devices (hearing aids, wheelchairs, etc.)
- Travel to and from medical practitioners (at SARS-prescribed rate per kilometre)
How to Claim Your Medical Tax Credits
Your employer should already be applying your section 6A credits through PAYE each month, reducing your monthly tax deduction. For the additional medical expenses credit, you will need to claim this when you file your annual tax return with SARS. Keep all receipts and statements from your medical aid as supporting documentation.
Strategies to Maximise Your Benefits
First, ensure your employer has the correct number of dependants on file so the section 6A credits are applied correctly during the year. Second, keep a record of all out-of-pocket medical expenses throughout the year. Third, consider a medical savings account (MSA) option on your medical aid, as contributions to the MSA above the annual limit roll over and can count as qualifying expenses. Finally, if you have a disability, register with SARS as the tax credit calculation is more favourable.
Use our salary calculator to see how medical aid tax credits affect your take-home pay.