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How much medical tax credits do I get from SARS for medical aid contributions and expenses - 2023?

SARS gives you tax credits

  1. when you contribute towards a medical aid scheme
  2. you get additional tax credits for certain qualifying expenses which were not covered by your medical aid.

These medical tax credits allow you to pay less tax.

For #1 - when contributing towards a medical aid, the amounts of tax credits you receive depends on the number of dependants. For the 2023/24 tax year, SARS provides the following tax credits for medical aid scheme contributions:

  • R364 per month for yourself
  • ZAR 364 per month for first dependant.
  • ZAR 246 per month for every additional dependant.

For #2 - you qualify for additional tax credits for “excess contributions to a medical aid scheme” and for qualifying expenses not covered by your medical aid scheme.

Medical aid tax contribution calculator 2023/24

Medical Aid Tax Credits Calculator
R
The number of dependants over and above yourself
Additional qualifying medical expenses not covered by your medical aid scheme.
If you are employed and younger than 65, this is used to calculate additional tax credits.
65 and older may get more tax credits
Are you, your spouse or one of your children disabled?

Step by step guide on calculating medical tax credits

Here is how you can calculate the medical tax credits for the tax year commencing March 2023 and ending Feb 2024:

A. Calculate the medical tax credits

  • 1
    Calculate monthly medical tax credits

    the amount of tax credits depends on the nr of dependants

    For the 2022/23 tax year, the monthly tax credits for medical scheme contributions are as follows:
    • you: R347 per month
    • 1st dependant: R347.
    • subsequent dependant: R234.
    Example. If you pay medical aid on behalf of yourself, your spouse and two children, you will get a monthly tax credit = R 1'162
    • you: R347
    • plus spouse: R347.
    • plus 1st child: R234.
    • plus 2nd child: R234.
  • 2
    Calculate your annual medical tax credits
    Determine the monthly tax credits for each month commencing in March 2022 until Feb 2023. Sum up individual months to arrive at an annual medical tax credits figure.
    Example. If you paid medical aid on behalf of yourself, your spouse and one child for six months, you will get a 6x monthly tax credit of R 928. If another child was added as a dependant onto your medical aid during the year, you get 6x medical credit of R1162. . This results in you getting annual medical tax credits of R928 x 6 + R1162 x 6 = R12 540

B. Calculate the additional medical tax credits

  • If you are younger than 65 and not disabled

    here is the formula for working out additional tax credits if you are younger than 65 and not disabled

    Formula:
    25% x (total medical aid contributions - 4x (annual medical tax credit) + (additional medical expenses - 7.5% your taxable income) )
  • If you are younger than 65 and disabled

    here is the formula for working out additional tax credits if you are younger than 65 and disabled

    Formula:
    33% x (total medical aid contributions - 3x (annual medical tax credit) + (additional medical expenses) )
  • If you are 65 or older

    here is the formula for working out additional tax credits if you are 65 or older

    Formula:
    33% x (total medical aid contributions - 3x (annual medical tax credit) + (additional medical expenses) )

Who is a dependant when it comes to my medical aid?

Section 1 of the Medical Schemes Act 131 of 1998 defines a dependant as

(a) the spouse or partner, dependent children or other members of the member’s immediate family in respect of whom the member is liable for family care and support; or

(b) Any other person who, under the rules of a medical scheme, is recognised as a dependent of a member

Source: Medical Schemes Act 131 of 1998

Do my dependants need to belong to the same medical aid scheme in order for me to qualify for tax credits?

No. Your dependants do not need to belong to the same medical aid. However, it is necessary for you to personally make payments on behalf of them. Example: Whilst you may belong to Discovery, your children and spouse may belong to Momentum Health. You still qualify for medical tax credits as long as you personally paid medical aid contributions for them.

List of qualifying medical aid schemes

If you contribute to one of these medical aid schemes, you will qualify for medical tax credits with SARS.

  • BestMed
  • Bonitas
  • Cape Medical Plan
  • Discovery Health
  • FedHealth
  • Gems
  • Genesis
  • Keyhealth
  • Liberty
  • Makoti medical scheme
  • MediHelp
  • Momentum Health
  • Polmed
  • SureMed
  • Sizwe

This is not a complete list. You can check with your medical aid scheme, to understand whether they are a registered medical scheme under the provisions of the Medical Schemes Act (Act 131 of 1998).

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