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Medical Aid Tax Credit Calculator South Africa

This free medical aid tax credit calculator shows your monthly SARS medical scheme fees tax credit. It also shows how much this credit lowers your PAYE and raises your take home pay. Enter your salary and the number of people on your medical scheme below.

Written by: MKR Dimension Research Team  |  Reviewed by: SA Tax Guide Editorial Team  |  Sources: SARS, National Treasury, Department of Employment and Labour  |  Who maintains SA Tax Guide?

Count yourself plus every dependant on the scheme. For example you your spouse and one child would be 3.

Enter your salary and number of medical scheme members to see your credit.

Quick answer. SARS gives you a fixed rand amount every month for belonging to a medical scheme. The main member and the first dependant each get the higher rate. Every dependant after that gets a lower rate. This credit lowers the tax on your payslip. It is separate from your medical scheme contribution itself.

How this medical aid tax credit calculator works

This tool works out your medical scheme fees tax credit using the official SARS rates for the tax year you select. It then runs your normal PAYE calculation and subtracts the credit from the tax owed. The result is your real monthly tax saving and your updated net pay. The credit is fixed. It does not change based on how much your medical aid actually costs or which plan you are on.

What is the medical aid tax credit

The medical aid tax credit is officially called the medical scheme fees tax credit. It is a fixed monthly rebate against your normal tax. It exists because South Africa moved away from letting people deduct their full medical aid contribution from taxable income. Instead every taxpayer who belongs to a scheme gets the same fixed rand credit no matter their income level. A high earner and a low earner with the same number of dependants get the same credit.

How the credit is worked out

The calculation has three parts.

  • The main member gets a fixed monthly amount.
  • The first dependant on the scheme gets the same fixed amount as the main member.
  • Every dependant after the first one gets a lower fixed amount.

Add all three parts together and you get your total monthly credit. This is the same method your payroll system should be using.

Who counts as a dependant

A dependant is anyone else covered under your medical scheme. This usually includes a spouse or partner and children. It can also include other relatives if they are registered as beneficiaries on the scheme and you pay their contributions. Only people actually listed on the scheme count toward your credit.

Why the credit cannot push your tax below zero

The medical scheme fees tax credit only reduces tax you already owe. If your normal tax for the month is already lower than your credit the extra amount does not carry over as cash in your pocket through this specific credit. Most working taxpayers do owe enough tax for the full credit to apply. This calculator shows you exactly how much of your credit is actually being used each month.

The additional medical expenses tax credit

SARS also offers a second credit for people with high medical costs. This one covers medical scheme contributions above a certain limit and qualifying out of pocket medical expenses such as prescribed medicine or specialist bills not covered by your scheme. It uses a different formula and depends on your age and whether you or a dependant has a disability. This calculator does not cover that second credit. It focuses only on the standard monthly medical scheme fees credit that almost every medical aid member qualifies for.

This tool covers the standard medical scheme fees tax credit only. For the additional medical expenses credit speak to a registered tax practitioner or check the SARS website directly.

Worked example

Take an employee earning R25,000.00 a month with 3 people on their medical scheme. Their monthly credit works out to R1,006.00. Their PAYE before the credit is R3,380.98 and it drops to R2,374.98 after the credit is applied. That is a real monthly saving of R1,006.00 landing in their pocket every month simply for having a medical aid.

Once you know your medical aid tax credit run your full salary through our PAYE calculator to see your complete monthly deductions.

Medical aid tax credit questions

What is the medical aid tax credit in South Africa?

It is a fixed monthly amount SARS subtracts from your normal tax for belonging to a registered medical scheme. It is officially called the medical scheme fees tax credit and it applies at every income level.

How is the medical aid tax credit calculated?

The main member gets a fixed monthly rate. The first dependant gets the same rate. Every dependant after that gets a lower fixed rate. Add the three parts together for your total credit.

Does the medical aid tax credit apply to everyone?

It applies to anyone paying for a registered medical scheme for themselves or their dependants. The rand amount is fixed by SARS each year and does not change based on income.

Can the medical aid tax credit reduce my tax to zero?

The credit can reduce your tax down to zero. It cannot create a refund on its own through this credit. If your tax payable is already lower than the credit the extra part is not paid out.

Is there an extra credit for medical expenses above my medical aid contributions?

Yes. SARS also allows an additional medical expenses tax credit for large out of pocket costs and contributions above certain limits. This calculator covers the standard monthly credit only.

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