Medical Aid Tax Credit Calculator (South Africa) ☆ Stoor
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How the medical tax credit actually works
Most tax deductions reduce your taxable income before tax is calculated. The Medical Scheme Fees Tax Credit (MTC) is different — it's a fixed rand amount that comes straight off your tax bill, after tax has already been calculated. That matters because it's worth exactly the same to every taxpayer, whether you're on the 18% bracket or the 45% one — a deduction would be worth more to a high earner, but this credit isn't.
You get it automatically if you belong to a registered South African medical scheme. Your employer applies it to your monthly PAYE if the scheme is paid through payroll; if you pay your own medical aid and aren't on a payroll deduction, you claim it when you submit your tax return.
Worked example
A family of four on the same medical scheme — you, your spouse and two children:
- You (main member): R376/month
- Your spouse (first dependant): R376/month
- Each child (dependants after the first): R254/month each — R508/month for both
- Total: R1,260/month, R15,120/year — off your tax bill, not your taxable income.
This is not the same as the Additional Medical Expenses Tax Credit
There's a second, separate SARS credit — the Additional Medical Expenses Tax Credit (AMTC) — for out-of-pocket medical costs that aren't covered by your scheme: co-payments, specialists your plan doesn't fully cover, and similar shortfalls. It uses a different formula based on your taxable income, the MTC you've already claimed, your age, and whether you or a dependant has a disability as defined by SARS.
We deliberately don't calculate the AMTC here. It genuinely differs for taxpayers 65 and over and for disability cases, and a wrong number on that calculation is worse than no number at all. If you have significant out-of-pocket medical costs for the tax year, a tax practitioner or the SARS website can work out what you're owed.
Frequently asked questions
Does the credit change based on how much I earn?
No. The MTC is fixed by the number of scheme members, not your income — that's what makes it a credit rather than a deduction.
What counts as a "dependant" for this credit?
Anyone registered on your medical scheme who isn't the main member — typically a spouse, children, and in some cases other registered dependants (SARS' own definition governs edge cases).
I pay for my own medical aid — do I still get it?
Yes, but if it isn't deducted through your employer's payroll, you claim it via your annual tax return rather than seeing it reduce your monthly PAYE automatically.
Does a hospital plan or gap cover qualify?
Only membership of a registered medical scheme qualifies for the MTC. A separate gap cover policy is insurance, not a medical scheme, and doesn't carry this credit on its own.
Will this number change during the tax year?
The rates are set once a year at the Budget speech (effective 1 March) and stay fixed for the tax year regardless of any other changes to your income.
See the full picture
This credit is one line in your overall tax position. Run the full income tax / take-home pay calculator to see it alongside PAYE and UIF, or the tax refund estimator if you're wondering whether retirement contributions could get you money back too.
Source: SARS Medical Scheme Fees Tax Credit rates for the 2026/27 tax year (year of assessment ending 28 February 2027), effective 1 March 2026. General information, not financial or tax advice — for the Additional Medical Expenses Tax Credit or your specific circumstances, consult SARS or a registered tax practitioner.