Medical Tax Credit Calculator South Africa 2026/2027

Reviewed & Verified
Written by the Independent Editorial Team · Reviewed & Verified by Solly Maanaso, CA(SA)

Calculate your medical scheme fees tax credit and your additional medical expenses tax credit — using the official SARS 2026/2027 rates.

Step 1 — Medical scheme membership
Monthly Medical Scheme Fees Tax Credit R 376
Annual MTC R 4,512
(R376 for you, R376 for your first dependant, R254 for each further dependant)
Step 2 — Which category applies to you?
This determines which formula applies to your out-of-pocket medical expenses — the three categories are calculated very differently.
You or your spouse are 65 or older
You, your spouse, or your child has a disability
None of the above
Step 3 — Enter your figures for the additional credit
e.g. specialist co-payments, dentistry, optometry, prescribed medicine, registered nursing care
Excludes retirement lump sums and severance benefits
Medical scheme contributions exceeding 4× MTC R 0
7.5% of taxable income threshold R 0
Amount exceeding the 7.5% threshold R 0
Additional Medical Expenses Tax Credit R 0
Total combined credit (MTC + AMTC) R 0
The MTC reduces your tax bill directly; the AMTC works differently depending on your category. Both are non-refundable rebates — if your normal tax payable is less than your combined credit, the unused portion is not refunded and cannot be carried forward to next year.
Source: SARS — Medical Credits page
This calculator provides an estimate only. The exact credit applied to your account depends on your employer's monthly PAYE calculation (for the MTC) and your annual ITR12 assessment (for the AMTC, generally claimed only on assessment). Consult a registered tax practitioner for guidance specific to your situation.

How the Medical Scheme Fees Tax Credit works

Beneficiary Monthly credit
You (the main member) R376
Your first dependant R376
Each further dependant R254

Source: SARS Budget 2026 FAQ

The MTC is a rebate — it reduces the actual tax you owe directly, rather than reducing your taxable income. If you're employed, your employer factors this credit into your monthly PAYE calculation automatically. If you're self-employed, retired, or otherwise don't have an employer applying it, you claim the MTC on your annual ITR12.

Source: SARS — Medical Credits page

Important: it doesn't carry forward.
If your normal tax payable in a given month or year is less than your MTC entitlement, the unused portion is simply lost — it cannot be refunded or carried over to a future tax period.
Source: SARS — Medical Credits page

Use the calculator above ↑

How the Additional Medical Expenses Tax Credit works

The AMTC is a second, separate credit for qualifying medical expenses you paid out of your own pocket — costs your medical scheme didn't cover. How it's calculated depends entirely on which of three categories you fall into.

Source: SARS — Additional Medical Expenses Tax Credit page

Category 1: You or your spouse are 65 or older

You can claim 33.3% of:

  • Medical scheme contributions exceeding 3 times your annual MTC, plus
  • All other qualifying out-of-pocket medical expenses, in full (no income threshold applies)
Worked example: Annual MTC of R9,024 (2 people, R376 × 2 × 12), medical scheme contributions of R45,000/year, and R12,000 of other out-of-pocket expenses:
  • 3 × R9,024 = R27,072
  • Contributions exceeding this: R45,000 − R27,072 = R17,928
  • Total qualifying base: R17,928 + R12,000 = R29,928
  • AMTC = 33.3% × R29,928 ≈ R9,966

Source: SARS Guide on the Determination of Medical Tax Credits (Issue 18)

Category 2: You, your spouse, or your child has a disability

The same 33.3% formula as Category 1 applies — but only where the disability belongs to you, your spouse, or your child, confirmed by a registered medical practitioner via an ITR-DD form.

Important distinction: if a different dependant (for example, your mother, father, or sibling) has a disability, you do not qualify for this more generous category. Their related medical expenses may still be claimed, but only under the ordinary Category 3 rules below.

Source: SARS — Tax and Disability page

Category 3: Everyone else (under 65, no qualifying disability)

You can claim 25% of the amount by which the following exceeds 7.5% of your taxable income:

  • Medical scheme contributions exceeding 4 times your annual MTC, plus
  • All other qualifying out-of-pocket medical expenses

(Taxable income, for this calculation, excludes retirement fund lump sums and severance benefits.)

Worked example: Annual MTC of R4,512 (1 person, R376 × 12), medical scheme contributions of R20,000/year, R8,000 of other out-of-pocket expenses, and taxable income of R450,000:
  • 4 × R4,512 = R18,048
  • Contributions exceeding this: R20,000 − R18,048 = R1,952
  • Total qualifying base: R1,952 + R8,000 = R9,952
  • 7.5% of R450,000 = R33,750
  • Since R9,952 does not exceed R33,750, the AMTC = R0

This is a common and correctly expected outcome — many Category 3 taxpayers with relatively modest out-of-pocket costs and a reasonable income will find their AMTC is nil, because their qualifying expenses simply don't clear the 7.5% threshold.

Source: SARS Budget 2026 FAQ; SARS Guide on the Determination of Medical Tax Credits (Issue 18)

Frequently Asked Questions

What is the medical scheme fees tax credit for 2026/2027?
R376 per month for you and your first dependant, and R254 per month for each additional dependant. This non-refundable rebate automatically reduces your monthly PAYE if employed, or is claimed on your ITR12 if not.
What is the additional medical expenses tax credit?
A separate credit for out-of-pocket medical expenses. If you or your spouse are 65+, or if a qualifying family member has a confirmed disability, claim 33.3% of qualifying expenses with no income threshold. Otherwise, claim 25% of qualifying expenses exceeding 7.5% of your taxable income.
Does a disabled parent qualify me for the more generous 33.3% medical tax credit?
No. The 33.3% rate only applies if the disability belongs to you, your spouse, or your child (confirmed via ITR-DD). Expenses for other disabled dependants fall under the standard 25% category, subject to the 7.5% threshold.
Why is my additional medical expenses tax credit R0?
Under the standard category, you only claim 25% of expenses exceeding 7.5% of your taxable income. If your expenses do not exceed this threshold, your additional credit is correctly R0.
What expenses count as "qualifying" for the additional medical expenses tax credit?
Qualifying expenses include amounts paid to registered medical practitioners, dentists, opticians, hospitals, and pharmacies for prescribed medicine, as well as prescribed disability-related expenses not covered by your medical scheme.
Can I carry forward an unused medical tax credit to next year?
No. Both credits are non-refundable rebates and cannot be refunded or carried forward to a future tax year if they exceed your normal tax payable.

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Income tax brackets 2026/2027 →

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Tax deadlines 2026/2027 → How to file your ITR12 →

Back to: ← Income Tax — Complete Guide

Sources:

  1. SARS — Medical Credits — sars.gov.za/types-of-tax/personal-income-tax/medical-credits/ (MTC overview; non-refundable rebate principle; employer/self-employed claiming)
  2. SARS — Additional Medical Expenses Tax Credit — sars.gov.za/types-of-tax/personal-income-tax/additional-medical-expenses-tax-credit/ (three-category AMTC structure)
  3. SARS — Tax and Disability — sars.gov.za/types-of-tax/personal-income-tax/tax-and-disability/ (disability category definition; ITR-DD requirement; non-spouse/child dependant distinction)
  4. SARS — Guide on the Determination of Medical Tax Credits (Issue 18, LAPD-Legal-Pub-Guide-IT07) — sars.gov.za (full AMTC formulas; worked examples; qualifying expense list)
  5. SARS — Medical Tax Credit Rates — sars.gov.za/tax-rates/medical-tax-credit-rates/ (historical and current MTC rates)
  6. SARS Budget 2026 FAQ — sars.gov.za (2026/2027 MTC rates: R376/R254; AMTC percentage confirmation)
  7. Income Tax Act 58 of 1962 — Section 6A (MTC); Section 6B (AMTC)

Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify MTC monthly rates.