Medical Aid Tax Credit Calculator South Africa

Calculate your exact Section 6A monthly credit and Section 6B additional medical expenses credit. See what your medical aid actually costs you after SARS gives you your money back.

Medical Aid Updated: 3 Jun 2026 · 2026/2027 tax year · By Faheema Sheikh

South Africa's Medical Tax Credit reduces the PAYE deducted from your monthly salary for every registered dependant covered by a qualifying medical scheme. The credit is a fixed rand amount per beneficiary — SARS sets the figure each tax year, regardless of your actual premium. This calculator shows your Section 6A monthly credit and Section 6B additional medical expenses relief, and how both reduce your effective PAYE for the 2026/2027 tax year.

How much is the medical aid tax credit in South Africa for 2026?

For the 2026/2027 tax year, SARS gives a fixed monthly Section 6A medical scheme fees tax credit of R376 for the main member, R376 for the first dependant, and R254 for each additional dependant — regardless of your actual premium. This directly reduces your monthly PAYE. Section 6B may add further relief for qualifying out-of-pocket medical expenses (SARS, 2026/2027).

🏥 Medical Aid & Salary Details

Including yourself (main member) and all dependants
Total amount paid per month (employee + employer portion)
R
Used to show PAYE impact — optional but recommended
R
Amounts not covered by your medical aid: gap payments, co-pays, scripts, specialists
R
🏥 Select your members and enter your premium Your net medical aid cost and full tax credit breakdown will appear here.

Also useful from PayTools

Payslip Code Code 4005 — Medical Aid Contributions Employee medical aid deductions are captured under Code 4005. View Code → Vehicle Tool Salary Affordability Hub After medical aid, see what net income remains for a vehicle. Check Affordability → Guide Medical Aid Tax Credit South Africa How Section 6A and 6B credits reduce your monthly tax bill. Read Guide →

How to Use This Calculator

Enter your number of dependants

Include yourself (main member), your spouse, and any children or other registered dependants.

Section 6A credit is calculated

R376/month for the main member, R376 for the first dependant, and R254 for each additional dependant.

Enter Section 6B expenses (optional)

Enter qualifying out-of-pocket medical expenses not reimbursed by your scheme for the additional credit.

Net medical aid cost is shown

Effective monthly cost = contributions paid minus the Section 6A credit your employer applies to reduce PAYE.

How the Medical Aid Tax Credit Works in South Africa

The medical aid tax credit (MTC) is one of the most misunderstood tax benefits in South Africa. Unlike a deduction — which reduces your taxable income before tax is calculated — the MTC is a direct credit against your tax liability. SARS reduces the amount of income tax you owe by a fixed rand amount for every member covered under a registered medical aid scheme.

The practical effect: every South African on a medical aid pays less tax each month by exactly the credit amount, regardless of their income or tax bracket. A minimum-wage earner and a senior executive both save the same R376 per month for being the main member. There is no income phase-out or bracket dependency — the credit is the same rand value for everyone who has a medical aid.

The 2026/2027 Section 6A Credit Rates

Section 6B — When the Extra Credit Kicks In

Section 6B of the Income Tax Act provides an additional medical expenses credit beyond the Section 6A flat credit. It applies in two scenarios:

1. For taxpayers under 65 with no disability — you can claim 25% of the amount by which your qualifying medical expenditure exceeds three times your annual Section 6A credit:

2. For taxpayers 65 or older, or with a confirmed disability (ITR-DD) — the rate rises to 33.3% and the threshold is lower:

Section 6B credits are typically claimed on your annual ITR12 tax return — they are not automatically applied to monthly PAYE. Keep all medical receipts, medical aid statements of benefit (showing what the scheme did and did not pay), and hospital admission records throughout the year.

What Counts as a Qualifying Medical Expense for Section 6B?

SARS allows Section 6B deductions for expenses paid to recognised medical practitioners and institutions for the diagnosis, treatment or prevention of illness. Key qualifying expenses include:

  • Medical aid co-payments and gap amounts (scheme rate vs actual rate differences)
  • Prescribed medicines and chronic medication scripts not fully covered
  • Specialist consultations where the medical aid paid only a portion
  • Dental work — fillings, extractions, root canals, orthodontics (partially)
  • Corrective spectacles and contact lenses (with optometrist prescription)
  • Physiotherapy, occupational therapy and registered allied health services
  • Hospital admission and procedure gaps
  • Disability-related accommodation and services (for disability claimants)

Expenses that do not qualify include: gym memberships, general vitamins and supplements (unless specifically prescribed by a doctor for a diagnosed condition), cosmetic procedures, alternative/homeopathic practitioners who are not registered with a recognised professional council, and medical travel for non-essential purposes.

Step-by-Step Manual Calculation Example

Take a 42-year-old on a family medical aid (main member + 2 dependants, so 3 members total) paying R3,800/month in premiums, with R500/month average out-of-pocket qualifying expenses. Annual salary R50,000/month:

Item Calculation Amount
Section 6A monthly creditR376 + R376 + R254R 1,006 / month
Monthly premium—R 3,800 / month
Net monthly medical aid costR3,800 − R1,006R 2,794 / month
Annual Section 6A creditR1,006 × 12R 12,072
Annual premiumR3,800 × 12R 45,600
3× annual 6A credit thresholdR12,072 × 3R 36,216
Excess contributionsR45,600 − R36,216R 9,384
Annual OOP expensesR500 × 12R 6,000
Section 6B qualifying amountR9,384 + R6,000R 15,384
Section 6B credit (25%)R15,384 × 25%R 3,846 / year
Total annual medical tax benefitR12,072 + R3,846R 15,918 / year

Medical Aid Tax Credit vs RA Deduction — Key Difference

Many people confuse the medical aid credit with a deduction. The distinction matters greatly:

  • An RA deduction reduces your taxable income, so its value scales with your tax bracket. A 36% taxpayer saves 36 cents per rand of RA contribution; an 18% taxpayer saves 18 cents.
  • The medical aid credit reduces your tax bill directly by a fixed rand amount. R376 is worth R376 to everyone — a minimum-wage earner and a top executive both save the same absolute amount per member.

This means the MTC is proportionally more valuable to lower-income earners. A worker paying R600/month for medical aid (2 members) receives an R752 credit — the credit actually exceeds the premium. In this case the "net cost" becomes negative, meaning the medical aid is entirely subsidised by the tax benefit.

What If You Only Have Medical Aid for Part of the Year?

The monthly medical aid tax credit only applies for the months you were actually a contributing member. If you joined a scheme in July, for example, you would receive the Section 6A credit for the 8 months from July to February, not the full 12 months — your payroll system prorates this automatically based on your medical aid contribution start date. This matters most for calculating your Section 6B additional medical expenses credit at year-end, since that calculation multiplies the monthly credit by the number of months you were a member to determine your annual credit baseline for the excess-contribution formula.

Frequently Asked Questions

How much is the medical aid tax credit in South Africa for 2026/2027?
For 2026/2027, the monthly Section 6A credit is R376 for the main member, R376 for the first dependant, and R254 for each additional dependant. A single person pays less PAYE by R376/month (R4,512/year). A couple saves R752/month. A family of four saves R1,260/month (R15,120/year) — simply for being registered on a medical aid scheme.
Is the medical tax credit a deduction or a direct credit?
It is a direct credit — not a deduction. A deduction reduces the income you are taxed on (so its rand value depends on your bracket). A credit reduces your actual tax bill by the same fixed rand amount regardless of your income level. R376 is worth exactly R376 in tax saving to everyone with a medical aid, whether they are in the 18% or 45% bracket.
What is Section 6B and how do I claim it?
Section 6B is an additional credit for taxpayers whose medical aid contributions and/or out-of-pocket qualifying expenses exceed a threshold. For under-65s without disability, it is 25% of the excess over 3× the annual Section 6A credit. For those 65+ or with a confirmed disability (ITR-DD form), it is 33.3% of the excess. Section 6B is claimed on your annual ITR12 tax return — it is not automatically applied to monthly PAYE. Retain all medical receipts, medical aid statements of benefit, and scripts throughout the year as SARS can request supporting documents.
Do I get the medical aid tax credit automatically on my payslip?
Yes, if your employer is aware of your medical aid membership and dependants, they should apply the Section 6A credit to your monthly PAYE calculation — reducing the tax withheld on your payslip. If your employer does not apply it, you can claim it on your annual ITR12 tax return. The Section 6B credit, for excess contributions or out-of-pocket expenses, is typically always claimed on your annual tax return rather than monthly.
Do I get the credit if I pay for my own medical aid privately?
Yes. Whether your medical aid is deducted via payroll or paid privately by debit order, you are entitled to the Section 6A credit as a registered contributing member. If paid privately, your employer does not apply the credit to monthly PAYE (they do not know about it), so you will overpay PAYE during the year and reclaim the credit via your annual ITR12 tax return. SARS will either reduce your tax assessment or issue a refund for the credits that were not applied monthly.
What qualifies as an out-of-pocket medical expense for Section 6B?
Qualifying out-of-pocket medical expenses for Section 6B include amounts paid directly to a registered medical practitioner, hospital, dentist, pharmacist, or optometrist for services not covered by your medical aid. Examples include gap claims, co-payments, prescribed medicine, dental work, corrective spectacles, and specialist consultations exceeding scheme rates. Cosmetic procedures, gym memberships, vitamins (unless prescribed), and non-registered practitioners generally do not qualify. Keep all receipts and statements of benefits from your medical aid as proof.
Can dependants include adult children on my medical aid?
Yes — adult children who are registered as dependants on your medical aid scheme qualify for the Section 6A credit, provided the main member is the contributing member paying the premium. Medical aid schemes generally allow dependants up to age 21 (or 26 if a full-time student) and permanently disabled dependants at any age. Each registered dependant counts toward your credit calculation: the second person on the scheme gets R376/month credit, and the third and beyond each get R254/month.
Does the medical aid tax credit help if I don't earn enough to pay tax?
Not directly. The medical aid tax credit reduces your tax liability, but it cannot reduce that liability below zero — it isn't a cash refund if you don't owe any tax. If your income is below the annual tax threshold (R99,000 for under-65s in 2026/2027) and you pay no PAYE, the medical aid credit has no tax benefit to claim, because there's no tax liability for it to offset.

Related Calculators

The medical aid tax credit reduces your overall PAYE — see how it fits with these tools:

Related Reading

Medical Aid Tax Credit South Africa 2026 What Is PAYE and How Does It Work? RA Tax Benefits 2026: How Much Tax Does an RA Save in SA? Provident Fund South Africa 2026: Two-Pot System Explained
Disclaimer: Medical tax credit amounts are based on SARS published rates for the 2026/2027 tax year (1 March 2026 to 28 February 2027). Section 6B calculations use the statutory formula for under-65 (25%) and 65+ / disability (33.3%) taxpayers. Qualifying out-of-pocket medical expense eligibility is subject to SARS requirements and the registered medical scheme's statement of benefits. This calculator does not constitute tax advice. For complex medical expense claims, Section 6B eligibility, or disability tax credit applications (ITR-DD), consult a registered tax practitioner or see SARS.gov.za.