Because the credit is flat-rate and automatically applied via employer payroll for most salaried workers, many taxpayers don't realise it exists as a distinct line item or check it's correctly applied when changing medical aid plans. A separate, income-linked Additional Medical Expenses Tax Credit is frequently under-claimed by higher earners who don't realise their out-of-pocket costs might qualify.
Source: SARS
Frequently Asked Questions
Does earning a higher salary reduce my Medical Scheme Fees Tax Credit?
No — the credit is a fixed monthly rand amount per person on the scheme, completely independent of income level.
What's the difference between the two medical tax credits SARS offers?
The main credit is a flat monthly rebate for anyone on a registered medical scheme; the Additional Medical Expenses Tax Credit is a separate, income-linked credit for out-of-pocket costs, mainly benefiting those over 65 or with a disability.
Can unused medical tax credit be carried over to the next tax year?
No — any portion that exceeds your tax liability in a given year is simply lost; it cannot be carried forward.