South Africa

Medical tax credit

A medical tax credit is available in respect of medical scheme contributions for taxpayers under the age of 65. This rebate replaced the deduction that was previously available. For the tax year commencing on 1 March 2024, the monthly rebates for medical scheme contributions are as follows:

• Taxpayer: ZAR 364.
• First dependant: ZAR 364.
• Every subsequent dependant: ZAR 246.

The annual rebate applicable to excess medical scheme contributions and other medical expenses is calculated as follows:

• Taxpayer over 65 years of age: 33.3% of the sum of qualifying medical expenses paid and the amount by which medical scheme contributions paid exceed three times the medical scheme tax credits for the year.
• Taxpayer with a disability: 33.3% of the sum of qualifying medical expenses paid and the amount by which medical scheme contributions paid exceed three times the medical scheme tax credits for the year.
• Taxpayer under 65 years with no disability: 25% of the sum of qualifying medical expenses paid and the amount by which medical scheme contributions paid exceed four times the medical scheme tax credits for the year, limited to the amount exceeding 7.5% of taxable income.

Tax rebates

A taxpayer is entitled to so-called tax rebates that are deducted from tax payable. The rebates have the effect of establishing tax thresholds below which no tax is payable.

For the 2025 tax year (i.e. the tax year commencing on 1 March 2024 and ending on 28 February 2025), the following rebates apply:

• Primary rebate: ZAR 17,235 for all natural persons.
• Secondary rebate: ZAR 9,444 if the taxpayer is 65 years of age or over.
• Tertiary rebate: ZAR 3,145 if the taxpayer is 75 years of age or over.