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Medical aid tax credit 2026/27: amounts, extra credit and worked examples
By MedicalAidZA editorial team · 8 min read · Updated 29 September 2026
- Tax year
- 1 March 2026 to 28 February 2027
- You (main member)
- R376 a month
- You and one dependant
- R752 a month
- Each additional dependant
- R254 a month
- Additional credit, 65 or older or disability
- 33.3% of fees above three times the credit, plus 33.3% of qualifying expenses
- Additional credit, everyone else
- 25% of the amount above 7.5% of taxable income
- Claimed through
- Your SARS annual return, using your scheme tax certificate
The medical aid tax credit for the 2026/27 tax year (1 March 2026 to 28 February 2027) is R376 a month for the person who pays the contributions, R752 a month for that person and one dependant together, and R254 a month for each additional dependant. These are the SARS figures, and they rose in the 2026 Budget from R364, R728 and R246.
The credit is a rebate. It comes off the income tax you owe, rand for rand, instead of coming off your taxable income. It is a fixed amount per person per month, so it does not change if your contribution goes up or you move to a dearer plan.
Some people can also claim an additional medical expenses tax credit for high scheme fees and out-of-pocket costs. This guide gives both credits, with worked examples, and shows how to claim them.
The 2026/27 amounts
SARS sets the medical scheme fees tax credit (MTC) per month, based on how many people your contributions cover.
| Who the contributions cover | Credit per month, 2026/27 |
|---|---|
| You, the taxpayer who pays the contributions | R376 |
| You and one dependant | R752 |
| Each additional dependant | R254 |
The R752 is R376 for you plus R376 for your first dependant. A couple therefore gets R752 a month, and each child added to the membership adds R254 a month.
If you are not a member yourself but you pay for a dependant who is, the credit is R376 for that dependant, and R752 for two dependants. One SARS page still shows R728 for that two-dependant case, which appears to be last year's figure. SARS's own rates table gives R752, which is R376 twice.
The 2026 Budget Review describes the increase as an inflation adjustment of 3.4%, after two years with no adjustment.
Earlier years, for comparison
People also search for the 2024 and 2023 amounts. The SARS rates table gives these, by tax year:
| Tax year | You | You and one dependant | Each additional dependant |
|---|---|---|---|
| 2026/27 | R376 | R752 | R254 |
| 2025/26 | R364 | R728 | R246 |
| 2024/25 | R364 | R728 | R246 |
| 2023/24 | R364 | R728 | R246 |
| 2022/23 | R347 | R694 | R234 |
The amounts stayed flat for three tax years before the 2026 increase. If you are completing an older return, use the row for that tax year.
How the credit works
- It is a rebate. It reduces the normal tax you owe. It is not a deduction from income.
- It is not refundable. If your tax for the year is lower than your credits, SARS does not pay out the difference and you cannot carry the unused part into the next year.
- It is fixed. SARS gives a set monthly amount that rises with the number of dependants. It is not tied to what your scheme actually charges you.
- The person who pays claims it. If you pay the contributions for yourself and your dependants, you get the credit. If someone else pays your contribution, they claim it, not you.
- Payroll usually handles it. If your employer deducts your medical aid, the credit is normally already in your monthly PAYE. Your annual return then reconciles it.
Because the credit is a set amount and not a percentage of your premium, it is worth more to a member on a cheaper plan, as a share of what they pay. See how medical aid works for how contributions are set.
Worked examples: the scheme fees credit
These use only the SARS amounts above.
Part of a year. A single member who pays contributions for 6 months of the tax year gets 6 x R376 = R2 256, because the credit is worked out per month of cover.
A family. You pay for yourself, your spouse and two children. The first two people are R376 each, which is R752 a month. Each child then adds R254. So your monthly credit is R752 plus two lots of R254, and you multiply that by the months you were covered.
Not enough tax. If your tax for the year before credits is smaller than your total credits, the leftover is lost. It is not refunded and it does not roll forward. Someone with a very low tax bill may therefore not use the whole credit.
The additional medical expenses tax credit
The additional medical expenses tax credit (AMTC) is separate from the MTC and comes on top of it. It has applied since the 2015 year of assessment. It is also non-refundable, and unused amounts are not carried forward. Which formula you use depends on who you are.
| Who you are | How the AMTC is worked out |
|---|---|
| 65 or older | 33.3% of the scheme fees you paid above three times the MTC you are entitled to, plus 33.3% of qualifying medical expenses you paid |
| You, your spouse or your child has a disability | The same 33.3% formula. It does not stretch to other dependants with a disability, such as your mother |
| Everyone else | 25% of the amount by which (scheme fees above four times the MTC, plus qualifying medical expenses) is more than 7.5% of your taxable income |
For the third group, taxable income here leaves out retirement fund lump sums, withdrawal benefits and severance benefits. Qualifying medical expenses are things such as certain out-of-pocket costs your scheme did not pay. SARS keeps the full list of what counts on its additional medical expenses tax credit page.
The SARS 2026 Tax Guide restates the same rules for 2026/27, so the multiples and the 7.5% did not change in the 2026 Budget.
Worked examples: the additional credit
Under 65, no disability, a high-cost year. Say your taxable income is R1 000 000. The 7.5% threshold is R75 000. Suppose your scheme fees above four times the MTC, plus your qualifying out-of-pocket costs, come to R85 000. That is R10 000 above the threshold. You get 25% of it, which is R2 500 off your tax.
The same person, a normal year. If the two amounts add up to R40 000, that is below the R75 000 threshold, so there is no additional credit. This is why most people under 65 only benefit in a year with heavy out-of-pocket spending.
A couple over 65. The MTC for two people is R752 a month, so three times that is R2 256 a month. Scheme fees above R2 256 a month count towards the 33.3% credit, and 33.3% of your qualifying out-of-pocket costs is added. This group has no 7.5% income threshold to clear first. See medical aid for pensioners.
How to claim
- Get your medical scheme tax certificate. Your scheme issues it after the tax year, by email or on the member portal. It shows the contributions you paid and the months of cover.
- Gather receipts for medicine, dentistry and other costs your scheme did not pay, if you may qualify for the additional credit.
- Log in to SARS eFiling and open your ITR12 return.
- Enter your months of cover and number of dependants for the scheme fees credit.
- Enter your contributions and qualifying out-of-pocket costs for the additional credit.
- Keep the certificate and receipts for 5 years, in case SARS asks for proof.
If you are self-employed and pay your scheme yourself, the certificate is your key evidence, because there is no payroll credit to compare it against.
Common mistakes
- Forgetting the additional credit in a year when you paid a lot out of pocket.
- Claiming for contributions someone else actually pays.
- Treating the credit as a deduction. It reduces your tax directly.
- Assuming other products count. The credit is for contributions to a registered medical scheme. Gap cover and hospital cash plans are insurance, not scheme fees, so ask SARS or a tax practitioner before claiming them.
- Not keeping receipts for treatment your scheme did not pay.
For what schemes plan to charge next year, see medical aid increases for 2027. The credit will not rise to match your premium.
Frequently asked questions
How much is the medical aid tax credit in 2026/27?
It is R376 a month for you as the main member, R752 a month for you and one dependant, and R254 a month for each additional dependant. The 2026/27 tax year runs from 1 March 2026 to 28 February 2027.
Is medical aid tax deductible?
Not as a deduction from your income. SARS gives you tax credits instead, which reduce the tax you owe rand for rand. There is a fixed monthly credit, and an additional credit if your scheme fees and out-of-pocket costs are high enough.
What was the medical aid tax credit in 2024 and 2023?
For 2024/25 and 2025/26 it was R364 for the main member, R728 for two people and R246 per additional dependant. For 2022/23 it was R347, R694 and R234. The 2026/27 amounts are higher.
Is the medical tax credit refundable?
No. It only reduces the normal tax you owe. If your credits are more than your tax, SARS does not refund the difference and you cannot carry it into the next year.
Who qualifies for the additional medical expenses tax credit?
People 65 or older, and people whose spouse, child or themselves have a disability, use a 33.3% formula. Everyone else can claim 25% of the amount above 7.5% of taxable income. Most under-65s only benefit in a high-expense year.
Do I get the credit if I pay for my parents or children?
Yes, if you pay the contributions for a dependant on a registered scheme, you can claim the credit for that dependant. The person who pays is the one who claims, so keep the tax certificate and proof of payment.
Do I need to claim the credit myself?
If your employer runs your medical aid, the main credit is normally applied through your monthly PAYE. You reconcile it on your annual return and claim the additional credit there, using your scheme tax certificate.
Does the credit increase when my medical aid premium goes up?
No. The credit is a fixed monthly amount set by SARS per person. It only changes when the Budget changes it, as it did for 2026/27. Your premium can rise without the credit rising.
