Many South African families are unaware that, in certain circumstances, a portion of professional home care and caregiving costs may qualify for tax relief through SARS under the Medical Expenses Tax Credit provisions of the Income Tax Act.
Importantly, the person receiving care does not always need to be the one claiming. In many cases, a spouse, adult child, or family member who pays for the care may be able to claim the qualifying expense on their own tax return, depending on the relationship and tax circumstances.
Up to one-third of your / your family member’s care costs may effectively be funded via SARS. This can make quality care more affordable for families supporting a loved one.
How It Works
Depending on the medical condition, who is paying for the care, and the taxpayer’s personal tax position, qualifying care costs may reduce the amount of tax payable or result in a SARS refund after assessment.
This often applies to:
Long-term care for a person with a diagnosed disability or serious impairment
Dementia / Alzheimer’s support where daily functioning is significantly affected
Stroke recovery or ongoing neurological conditions
Post-operative recovery care where medically required
Nursing support at home after hospital discharge
Certain frail care situations, depending on severity and medical evidence
Who May Be Able to Claim?
Depending on the circumstances, the claimant may be:
The person receiving care
A spouse paying for the care
An adult child supporting a parent
A family member financially responsible for a dependant’s care
If you are paying for a loved one’s qualifying care costs, there may be tax relief available to you.
👩⚕️ What care-related costs qualify?
Caregiver costs can be claimed if they are for a person with a diagnosed disability (temporary conditions generally don’t qualify unless severe and prolonged).
Typical qualifying costs:
Home-based caregiver / nurse / carer
Frail care or dementia care
Assistance with daily living (bathing, feeding, mobility)
Nursing services and supervision
⚠️ Key requirement:
There must be a diagnosis confirmed by a registered medical practitioner, usually documented via a SARS ITR-DD form.
What Could You Potentially Claim?
Every family’s tax position is different, but in some qualifying disability-related cases, families may recover a meaningful portion of care costs through SARS.
Where claims are backdated and supporting documentation is in place, refunds can sometimes be substantial.
💰 How the tax benefit actually works
It’s not a flat refund—but rather a tax credit calculated based on income, age, and disability status:
1. If the patient has a disability (most relevant case)
You can claim 33.3% (one-third) of:
All qualifying out-of-pocket medical expenses
(INCLUDING caregiver costs)
👉 This is where the “~33% back” idea comes from—and in these cases, it’s broadly accurate.
2. If there is no disability (just medical expenses)
Much stricter:
Only expenses above a certain % of income qualify
Refund is still calculated at 25% of the excess
👉 In these cases, the benefit is usually much lower.
3. Age matters
Over 65s get more favourable treatment (lower thresholds)
Under 65s without disability → limited benefit
📊 Example (simple, realistic)
A family spends:
R15,000/month on a caregiver
→ R180,000/year
If the patient qualifies as having a disability:
~33.3% tax credit
→ ~R60,000 back from SARS
If backdated over 2–3 years:
Could result in R120k–R180k+ refunds
⏪ Backdating
SARS typically allows up to 3 years of reassessment
Requires:
Supporting invoices (e.g. from CareChamp 😉)
Proof of payment
Medical diagnosis (ITR-DD)
⚠️ Common pitfalls
No formal disability diagnosis → claim gets reduced or rejected
Paying caregivers in cash without records
Using unregistered providers without proper invoices
Not separating medical vs non-medical household costs
Important: It Depends on Your Circumstances
This is not an automatic rebate and not all care costs qualify.
SARS will consider factors such as:
The medical diagnosis and severity of the condition
Whether the need for care is temporary or long-term
Who is paying for the care
Whether that person pays tax
The dependant relationship
Supporting invoices and proof of payment
Relevant medical forms or practitioner confirmation
How CareChamp Helps
We provide professional invoices and clear records for services rendered, helping families maintain the documentation typically needed for tax discussions with their accountant or tax practitioner.
Our team can also help explain the broad categories where clients often explore potential tax relief.
We Recommend Speaking to a Tax Professional
Tax outcomes vary from person to person. We always recommend that clients consult a qualified accountant or tax advisor regarding their specific circumstances and eligibility.
Need Care Now? Let’s Help.
Whether you need:
Elder care at home
Dementia support
Post-operative recovery care
Nursing visits
Short-term respite care
CareChamp can assist quickly and professionally.
👉 Speak to a Care Advisor today
📞 / WA: 087 944 6299
care@carechamp.co.za