Medical Aid Tax Credits & Rebates
Section 6A Medical Aid rebates and tax credits available to taxpayers can seem like a complicated topic. Here we aim to explain the process in simple language to make it easy for any person to understand.
Medical tax credits you are allowed to deduct for tax purposes, will depend on:
1) the numbers of dependents
2) registered medical aid contributions; and
3) additional medical out of pocket expenses
4) qualifying medical expenses
5) medical scheme contributions
Medical Tax Credit Rates for 2024 tax year:
- Taxpayer or 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 R364
- 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 R728
- For each additional dependant R246
Medical Tax Credits Rates for 2023 tax year:
- Taxpayer or 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 R347
- 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 R694
- For each additional dependant R234
Medical Tax Credits Rates for 2022 tax year:
- Taxpayer or 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 R332
- 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 R664
- For each additional dependant R224
What does the medical tax credit consist of
- The medical scheme fees tax credit
This is based on the number of persons (members and dependents) on the scheme.
Tax credits available per person on the scheme are (based on 2023 figures):
R8,328 for the first 2 members and R2,808 for every other member or additional dependent.
For example: if your tax payable is R10,000 for the tax year, and you are entitled to a medical tax credit of R8,328, then the actual tax payable after claiming your credits will be R1,672.
- The additional medical expenses tax credit
A taxpayer can also claim an additional medical expenses tax credit. A formula is applied to calculate whether an additional tax credit can be allowed based on the taxpayer’s out of pocket medical expenses.
For example: if your tax payable is R10,000 for the tax year, and you are entitled to a medical tax credit of R8,328 + an additional medical tax credit of R850, then this would result in a tax refund of R822.
How is a Medical Tax Credit applied?
The calculated tax credit is offset against your tax payable for the financial year and thereby reducing the amount of tax you pay. This results in less tax paid overall for the financial year and can also result in a tax refund.
*All the amounts used in the example are based on the 2023 tax year, i.e. 01/03/2021 – 28/02/2023.
FAQ - Frequently asked questions:
Do I need a Bank account for me medical aid refund?
You need to keep all your details updated with SARS.
You won't receive your refund until you have updated your bank details with SARS.
Important to note: It is not the credit you are getting back but rather tax you have already paid that will be refunded to the value of the credit's tax value.
Do you need our help registering and submitting your Tax return?
Zeelie Professional Accountants SA can assist you with the entire tax preparation and submission process and the resulting liaison thereafter.
Contact our team via any of the following channels:
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