Medical Tax Credit Rates

Medical Scheme Fees Tax Credit was introduced from 1 March 2012 but didn’t affect all categories of taxpayers at once. There are two different start dates depending on the age of the taxpayer:

Taxpayers younger than 65 – converted to the Medical Tax Credit from 1 March 2012
Taxpayers 65 and older – converted to the Medical Tax Credit from 1 March 2014

Medical Tax Credit Rates

Per month (R)	2027	2026	2025
For the taxpayer; or for a dependant who is a member of a medical scheme or fund, where the taxpayer him- or herself is not a member of a medical scheme or fund	R376	R364	R364
For the taxpayer and one dependant; or in respect of two dependants where the taxpayer him- or herself is not a member of a medical scheme or fund	R752	R728	R728
For each additional dependant	R246	R246	R246

Important

The amounts may vary depending on the number of months in the tax year that a taxpayer and dependents are members of a medical scheme fund.

Additional Medical Expenses Tax Credit

What is it? An Additional Medical Expenses Tax Credit (also known as an “AMTC”) is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and any portion that is not allowed in the current year can’t be carried over to the next year of assessment. It applies for years of assessment starting on or after 1 March 2014 (from the 2015 year of assessment) and is mostly calculated against qualifying “out of pocket” medical expenses paid for you and any dependent. It is a rebate given in addition to the medical scheme fees tax credit.

What qualifies as out-of-pocket medical expenses?

These are amounts paid and not recovered during the year of assessment in respect of you or any dependent, and include:

Services rendered and medicines supplied by any duly registered medical practitioner, dentist, optometrist, homoeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist;
Hospitalisation in a registered hospital or nursing home;
Home nursing by a registered nurse, midwife or nursing assistant, including services supplied by any nursing agency;

Medicines prescribed by any duly registered physician (as listed above) and acquired from any duly registered pharmacist;
Expenditure incurred and paid outside South Africa in respect of services rendered or medicines supplied which are substantially similar to the services and medicines listed above;
Any qualifying expenses prescribed by the Commissioner as a result of any physical impairment or disability.

Who is a dependent?

A dependent is:

A spouse
A child and the child of a spouse (e.g. son, daughter, step son, step daughter, legally adopted child)

Who was alive during any portion of the year of assessment, and who on the last day of the year of assessment:

Was unmarried and was not or would not, had he or she lived, have been:
Older than 18 years
Older than 21 years and was entirely or partly dependent for maintenance on the person and has not become liable to pay normal tax for the year
Older than 26 years and was entirely or partly dependent for maintenance on the person and has not become liable to pay normal tax for the year and was a full-time student at an educational institution of a public character; or
In the case of any other child, who was incapacitated by a disability from maintaining himself or herself and was entirely or partly dependent for maintenance on the person and hasn’t become liable to pay normal tax for that year.

Any other member of a person’s family for whom he or she is liable for family care and support (e.g. mother, father, mother-in-law, father-in-law, brother, sister, grandparents, grandchildren.
Any other person who is recognised as a dependent of that person in terms of the rules of a registered medical scheme or fund.

Calculation of Additional Medical Expenses Tax Credit

The AMTC will depend on a person’s age and whether the person, his or her spouse or any of their dependent(s) has a disability.

A person who is 65 years of age or older may claim the following AMTC: Qualifying medical expenditure paid during the year of assessment, amounting to

33,3% of the fees paid to a medical scheme or qualifying foreign fund exceeds three times the amount of the MTC to which that person is entitled; plus
33,3% of the qualifying medical expenses paid (out-of-pocket expenses).

A person who is, or whose spouse or a child is a person with a disability, may claim the following AMTC: Qualifying medical expenditure paid during the year of assessment, amounting to

33,3% of the fees paid to a registered medical scheme (or similar qualifying foreign fund) exceeds three times the amount of the MTC to which that person is entitled; plus
33,3% of the qualifying medical expenses paid (out-of-pocket expenses).

Note that this concession is only available where the person, his or her spouse or child is a person with a disability. It is not available in respect of any other dependent with a disability (for example, the person’s mother).

Note that this concession is only available where the person, his or her spouse or child is a person with a disability. It is not available in respect of any other dependent with a disability (for example, the person’s mother).

25% of the amount by which the sum of the amounts listed below exceeds 7,5% of the taxable income (excluding retirement fund lump sum benefits, retirement fund lump sum withdrawal benefits, and severance benefits) before taking into account this AMTC:

All contributions paid by the person to a registered medical scheme (or similar qualifying foreign fund) in respect of the person and any of his or her dependants as exceeds four times the amount of the MTC to which that person is entitled; and
Actual qualifying medical expenses (including physical impairment expenses) paid by the person and not recoverable from the medical scheme in respect of the person and any of his or her dependants.

EXAMPLE

Let’s assume Susan pays the medical expenses for her family. Susan is married and has 3 children, her taxable income is R580 000, medical contributions for the year R85 000, out of pocket medical costs R25 000.

For the 2024 tax year we make the following assumptions:

Medical Tax Credit (MTC) is calculated as follows

Member	Amount
Main Member	R 364
Second Member	R 364
3 Children (R246 x 3)	R 738
Total Per Month	R 1,466
	R1466 x 12 = MTC for the year R17,592

Additional Medical Tax Credit (AMTC) is calculated as follows

Member	Amount
Total Medical Aid Contributions	R 85 000
Less 4xMTC (R17 592 x 4)	R 70 368
Sub total	R 14 632
Plus all other qualifying medical expenses	R 25 000
Sub total	R 39 132
Less 7.5% of taxable income (R380 000 x 7.5%)	R 28 500
Sub total	R 11 132
AMTC = R11 132 x 25%	R 2783
TOTAL MEDICAL CREDIT: R17 592 + R2783 =	R 20 375

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Medical Tax Credit Rates