Medical Tax Credits in South Africa: How They Work for 2026/27
Short answer: For 2026/27 the medical scheme fees tax credit is R376 a month for you, R752 for you and one dependant, and R254 for each additional dependant. Qualifying out-of-pocket medical costs can earn an extra credit.
Check before you rely on this: the extra credit for out-of-pocket costs is summarised here in plain words. The exact sums, including how much is deducted from your scheme contributions and the 7.5% rule, are in the SARS medical credits guide, which we link below. Use it for your own figures.
The medical scheme fees tax credit
This is a rebate, taken off the tax you owe. It is not a refund on top of that, so it cannot take your tax below zero.
| Who is covered | Credit per month, 2026/27 |
|---|---|
| You | R376 |
| You and one dependant | R752 |
| Each additional dependant | R254 |
These figures are from the SARS rates table, updated 25/02/2026. They are up from R364 and R246.
The extra credit for out-of-pocket costs
Some medical costs you pay yourself, such as doctor, dentist, optometrist and medicine bills your scheme did not cover, can earn an additional credit. For people under 65 without a disability it is 25% of the qualifying amount. For people 65 or older, or with a disability, it is 33.3%. Only the part above a threshold linked to 7.5% of your taxable income counts, and part of your scheme contributions is taken into account in the calculation.
What to keep
Your medical scheme tax certificate and the receipts or statements for out-of-pocket costs. Keep them for five years from the date you submit the return.
How Tax Pig does this on WhatsApp
- Send a photo of each medical slip on WhatsApp. It is read and filed with a category.
- Ask "how much did I spend on medical this year" to see the total.
- Your slips stay private to your account.
Frequently asked questions
Is the monthly credit a refund?
No, it is a rebate. It reduces tax payable and cannot go below zero.
Do I need receipts for out-of-pocket costs?
Yes. Keep them, because SARS can ask to see them.
Where are the full calculations?
In the SARS guide on the determination of medical tax credits, linked below.
Sources
- SARS: Medical tax credit rates
- SARS: Guide on the determination of medical tax credits
- SARS: Budget 2026 frequently asked questions
Related guides
General information, not tax advice. Check your own situation with SARS or a registered tax practitioner.
