Belonging to a registered medical scheme doesn’t just protect your health. It also comes with a built-in tax benefit. SARS refunds part of what you pay in medical scheme contributions through a system of tax credits, lowering your overall tax bill simply for staying covered.
Do you know how it works, and if you qualify, how to claim the tax benefit? With SARS’ auto-assessments having started on 1 July 2026, and the full filing season open since 13 July 2026, here is some guidance on how to get the most out of your medical scheme tax benefit.
What Is a Medical Scheme Tax Credit?
It’s not a discount from your medical scheme; it’s a rebate from SARS for belonging to one.
Every month you contribute to a registered medical scheme, you’re entitled to a fixed credit that reduces the tax you owe. It exists regardless of which scheme you’re on, or what your premium costs; it’s based purely on how many people are covered.
SARS has two categories for claiming tax back from your medical aid.
- The first category is the Medical Scheme Fees Tax Credit (MTC), which provides tax credits to taxpayers contributing to a registered medical scheme. This tax benefit is calculated based on the number of dependants covered.
- The second method, called the Additional Medical Tax Credit (AMTC), enables taxpayers to claim a tax credit for certain out-of-pocket medical expenses not covered by their medical scheme.
For the tax year running from 1 March 2025 to 28 February 2026, the monthly rates are R364 for the main member, R364 for the first dependant, and R246 for every additional dependant.
Do I Need to Claim It Myself, or Does It Happen Automatically?
This is the part most people get wrong, so it’s worth being precise. There are two credits, and each credit is calculated and paid differently.
Medical Scheme Fees Tax Credit is calculated and paid automatically. If your contributions come off your payroll, your employer applies it to your monthly PAYE without you doing anything.
Additional Medical Tax Credit covers money you paid out of your own pocket for medical costs that your scheme didn’t cover.
For costs submitted to your medical scheme, which were not covered, most schemes will include the total thereof on your medical scheme tax certificate for claims not covered. For any other out-of-pocket costs that you paid directly to a healthcare provider, you will need to calculate and claim it yourself.
Don’t Expect Tax Credits for Gap Cover and Medical Insurance
Although gap cover and medical insurance are underwritten by a Financial Services Provider, they do not provide cover as a registered medical scheme under the Medical Schemes Act. This means that the premiums you pay for cover don’t qualify for the main tax rebate.
Where it could still help is if your gap cover payout did not fully cover a medical bill and you were left covering an expense from your own pocket. This amount may count as a qualifying expense under the second credit, provided that it meets the requirements.
Medical Aid Members, Here’s How to Make Sure You’re Ready
Reviewing your medical expenses and medical aid contributions for the period 1 March 2025 to 28 February 2026 helps you to plan for tax season, and makes sure that you don’t miss out on any credits due to you for taking care of your health.
This is what you need to do in order to maximise your medical tax credit:
- Request or download your medical aid tax certificate, and check that your beneficiary information is correct.
- Make sure that every dependant is registered on your medical aid. Each one adds to your monthly credit, so missing someone could reduce what you get back.
- Keep invoices and receipts for any out-of-pocket expenses in a safe place, and check that the details on each one are correct.
WRITTEN BY LILANE SWANEPOEL
Lilane Swanepoel specialises in medical aid solutions.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.
