Tax Relief on Medical Expenses for Retirees.

Here is some genuinely good news for you as a retiree:

SARS provides meaningful tax relief on medical expenses — and retirees over 65 receive even more generous treatment.

Yet many South Africans either don’t know about these deductions or don’t claim them correctly.

Every rand of tax relief is a rand back in your pocket and another rand you do not have to earn.

This series was written specifically for you — whether you’re five years from retirement or already enjoying your years of freedom. It is practical, plain-spoken, and South African. No jargon and no advice. Just plain information you want to know for your own well-being.

This is part 9 about: Tax Relief on Medical Expenses for Retirees in South Africa.

Please read the DISCLAIMER from the link near the bottom of the page.

Medical Tax Credits (MTC) — Available to Everyone.

Regardless of your age, you receive a Medical Tax Credit for your medical aid contributions.

For 2026, this is a fixed monthly credit deducted directly from your tax liability — not your income.

The first member on the scheme receives a higher credit, with a smaller amount for each additional dependent. This credit applies whether you are employed or retired.

The Section 18 Deduction —
Your Big Benefit Over The Age Of 65.

If you are 65 years or older, you qualify for the Section 18 additional medical expense deduction — and it is significantly more generous than what younger taxpayers receive.

Once you reach 65, you can deduct 33.3% of all qualifying out-of-pocket medical expenses from your taxable income.

This includes:

Medical aid contributions that exceed your Medical Tax Credit.
Prescribed medication not covered by your scheme.
Dental and optical expenses paid out of pocket.
Physiotherapy, occupational therapy, and rehabilitation costs.
Frail care and nursing home fees — where you or your dependent is in care.
Hearing aids, wheelchairs, and other prescribed medical appliances.
Medical expenses paid on behalf of a dependent with a disability.

💡 PRACTICAL EXAMPLE: If you paid R48,000 out-of-pocket in medical expenses during the year (after what your scheme covered), and you are over 65, you can claim 33.3% = R15,984 as a tax deduction. At a 26% marginal tax rate, that saves you approximately R4,156 in tax — real money that goes back into your retirement funds.

How to Claim — Practical Steps.

Keep ALL medical receipts throughout the year — GP visits, pharmacy receipts, specialist accounts, optical and dental invoices.
Request a year-end tax certificate from your medical aid scheme (usually issued automatically in February/March).
Keep a record of what your scheme paid and what you paid yourself — SARS needs both figures.
Claim via your annual ITR12 tax return. Your tax practitioner can assist if you use a registered tax preparer.
Do not forget to include expenses paid for your spouse or dependants — these qualify too.

Next…

The next post in the series will explain:
A Step-by-Step Guide On Reviewing Your Medical Plan

As you will want to know more, all you have to do is to subscribe to this series below.
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PS: We are not medical aid brokers or financial advisors and will not try to sell you any medical cover. This series is for informational purposes only.

DISCLAIMER.