SARS Updates Two Key Income Tax Guides for 2025/26
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Your client calls. They want to know exactly what their medical aid contributions save them in tax. Do you have the latest numbers in front of you?
On 15 June 2026, SARS updated two important income tax guides. If you work with individual taxpayers, these are worth bookmarking before the current filing season gets into full swing.
What was updated
SARS published the following on its Income Tax guides page:
Guide on the Determination of Medical Tax Credits (Issue 18)
This guide covers everything practitioners need to know about how medical scheme fees tax credits work. It explains who qualifies, how credits are calculated, and what the rules are for dependants and disability-related expenses. Issue 18 is the current version and should replace any earlier editions you may be using.
As covered in our earlier article on medical expenses and what you can and cannot deduct, the distinction between registered medical scheme contributions and medical insurance products remains a common point of confusion for clients. This guide clears that up.
After two years without inflationary relief, the 2026 Budget confirmed that medical tax credits will be fully adjusted for inflation. Issue 18 reflects the updated credit amounts for the current tax year. Accounting Weekly
The monthly credits for the 2025/26 tax year (1 March 2025 to 28 February 2026) are:
R364 per month for the main member
R364 per month for the first dependant
R246 per month for each additional dependant
So a family of four on one medical scheme, for example, would receive a total monthly credit of R1,220, which reduces their annual tax liability by R14,640. Note that from the 2026/27 tax year onwards, these rates increase to R376 per month for the main member and first dependant, and R254 per month for each additional dependant, a 3.4% increase in line with the Budget. If you are already preparing returns that straddle both periods, make sure you are applying the right rates to the right tax year.
Guide on Income Tax and the Individual (2025/26)
This is the comprehensive guide for individual taxpayers. It covers the full income tax framework as it applies to individuals, including employment income, deductions, rebates, capital gains, and the interaction of various credits. This updated edition applies to the 2025/26 tax year.
This is the comprehensive reference guide for individual taxpayers. It covers the full income tax framework for the 2025/26 tax year, including employment income, deductions, rebates, and the interaction of various credits. For practitioners handling ITR12 returns this filing season, this is the document to have open.
One practical note for clients who received salary increases this year: the last tax year for which the personal income tax brackets were adjusted for inflation was 2023/24, meaning the 2025/26 brackets are unchanged from the prior year. Clients who received any salary increase in 2025/26 will likely have more income falling into a higher bracket than before, even if their real purchasing power barely changed. It is worth flagging this to clients who are expecting a similar refund to last year.
Why it matters for your practice
Filing season is underway. Getting these guides into your workflow now prevents errors and helps you give clients accurate advice, particularly on medical credits where the rules catch many people off guard.
If you are using the SARS eFiling platform or advising clients on their ITR12 returns, make sure your calculations are based on the 2025/26 figures in these updated guides.