How Medical Tax Credits Work in South Africa
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South Africa offers two types of medical tax credits: Section 6A (medical scheme fees tax credit) and Section 6B (additional medical expenses tax credit). These credits directly reduce your tax liability.
Section 6A: Medical Scheme Fees Tax Credit
Section 6A provides a fixed monthly tax credit for contributions to a registered medical scheme. The credit is deducted directly from your tax liability (not from taxable income).
| Beneficiary | 2025/2026 Monthly | 2026/2027 Monthly | 2026/2027 Annual |
|---|---|---|---|
| Main member | R364 | R376 | R4,512 |
| First dependant | R364 | R376 | R4,512 |
| Each additional dependant | R246 | R254 | R3,048 |
Source: SARS Medical Tax Credit Rates, 2025/2026 and 2026/2027 years of assessment.
For example, a family of four (main member, first dependant, and two additional dependants) would receive an annual Section 6A credit of: (R364 + R364 + R246 + R246) × 12 = R14,640.
Section 6B: Additional Medical Expenses Tax Credit
Section 6B provides additional relief for qualifying out-of-pocket medical expenses not covered by your medical scheme. The formula depends on the taxpayer's age.
| Age Group | Section 6B Formula |
|---|---|
| Under 65 (no disability) | 25% × [(medical scheme fees paid − 4 × Section 6A credit) + (qualifying medical expenses − 7.5% of taxable income)] |
| 65 and older, or with disability | 33.3% × [(medical scheme fees paid − 3 × Section 6A credit) + qualifying medical expenses] |
Source: SARS Additional Medical Expenses Tax Credit (Section 6B).
For under-65 taxpayers, both the excess scheme fees and excess medical expenses are added together before applying the 25% rate. For taxpayers 65 and older (or those with a disability), the formula is more generous as it uses a higher percentage and a lower deduction threshold.
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