How to Calculate Medical Aid Tax Credits in South Africa
How to calculate medical aid tax credits in South Africa: Section 6A gives R376/month for the first two members and R254 per additional dependant; Section 6B adds credits for out-of-pocket expenses. Credits reduce tax rand-for-rand.
Quick answer
Medical aid tax credits in South Africa reduce your income tax directly (not taxable income). Section 6A: R376/month for the main member and first dependant, R254/month for each additional dependant (2026/2027 rates). Section 6B: extra credit on qualifying out-of-pocket medical expenses — 25% of expenses above 4× annual Section 6A for under-65s, or 33.3% above annual Section 6A for 65+. Subtract total credits from your calculated tax liability.
Step-by-Step Guide
Determine your Section 6A credits
Section 6A provides fixed monthly credits: R376 for the main member, R376 for the first dependant, and R254 for each additional dependant. For a family of 4: R376 + R376 + R254 + R254 = R1,260 per month (R15,120 per year).
Calculate Section 6B (if applicable)
Section 6B gives additional credits for out-of-pocket medical expenses. For under 65: credit = 25% × (total medical expenses − 4 × annual Section 6A). For 65 and older: credit = 33.3% × (total medical expenses − annual Section 6A).
Add up total medical expenses
Total medical expenses include: annual medical aid contributions PLUS out-of-pocket expenses (doctor visits, prescriptions, dental, optical, hospital co-payments). Keep all receipts.
Apply the credits to your tax
Medical credits are subtracted directly from your tax liability (not from taxable income). They reduce your tax rand-for-rand. If your credits exceed your tax liability, the excess is lost — it does not create a refund beyond zero tax.
Free Tool
Medical Aid Tax Credits Calculator
Calculate your Section 6A and 6B medical aid tax credits and additional medical expenses deduction.
Frequently Asked Questions
How much is the medical aid tax credit per month?
What qualifies as an out-of-pocket medical expense?
Do medical credits work differently for over 65s?
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