Understanding Tax Credits for Individuals in Employment in Zimbabwe
In the Zimbabwean tax system, tax credits are a powerful way for individuals to reduce their tax liability. While a “deduction” reduces the income that is subject to tax, a “credit” is a dollar-for-dollar reduction of the actual tax you owe. Zimbabwe Revenue Authority (ZIMRA) provides several credits designed to support social welfare, particularly for the elderly, the disabled, and those with significant medical expenses.
Core Statutory Credits (Fixed Amounts)
The following credits are available to residents. The amounts are pegged at US$75.00 per month (or US$900.00 per year). If you are paid in local currency (ZiG), these amounts are converted at the prevailing interbank exchange rate on the date of payment.
| Credit Type | Monthly Amount | Annual Amount | Eligibility & Key Notes |
| Elderly Person’s Credit | US$75.00 | US$900.00 | Available to those over 55 years of age. This credit is reduced proportionately if the assessment period is less than a year. |
| Blind Person’s Credit | US$75.00 | US$900.00 | Available to taxpayers medically certified as blind. Can be transferred to a spouse if the blind person has insufficient tax to use it. |
| Disabled Person’s Credit | US$75.00 | US$900.00 | For substantial mental or physical disabilities (non-temporary). Not available to non-residents. Can also be transferred to a spouse. |
Medical and Health-Related Credits
Unlike the fixed credits above, medical credits are calculated based on your actual spending. They are designed to ease the burden of healthcare costs for the taxpayer, their spouse, and their minor children.
1. Medical Aid Contributions
-
Credit Rate: 50% of the total contributions made to a registered medical aid society.
-
Residency: Interestingly, this is one of the few credits available to non-residents who contribute to Zimbabwean medical aid societies.
2. Medical Expenses & Drugs
-
Credit Rate: 50% of the amount paid for dental and medical treatment, hospital stays, and prescribed drugs/medicines.
-
Note: This credit is not available to non-residents.
3. Invalid Appliances
-
Credit Rate: 50% of the cost of purchasing appliances such as:
-
Wheelchairs, artificial limbs, leg calipers, or crutches.
-
Special fittings for cars, beds, or bathrooms to accommodate a physical disability.
-
Spectacles or contact lenses.
-
-
Note: This credit is not available to non-residents.
Crucial “Fine Print” for 2026
Understanding the limitations of these credits is just as important as knowing the amounts:
-
No Refunds: Tax credits are non-refundable. If your total tax for the month is $50, but you have $75 in credits, ZIMRA will reduce your tax to zero. They will not pay you the $25 difference.
-
Limited to Charges: The total amount of credits claimed cannot exceed the total income tax you were supposed to pay.
-
Dependents vs. Minor Children: Medical credits apply to you, your spouse, and minor children only. You cannot claim medical credits for extended family members or adult dependents (e.g., parents or siblings) unless specifically provided for under disability clauses.
-
Disability Status: To claim the Disabled Person’s Credit, the disability must be “substantial” and not temporary. A medical report from a specialist is usually required to satisfy the Commissioner.
Why These Credits Are Advantageous
The primary advantage is increased take-home pay. For example, an elderly employee (over 55) who has a monthly medical aid contribution of $100 would see their tax bill reduced by:
-
$75.00 (Elderly Credit)
- $50.00 (50% of Medical Aid)
Total Tax Saving: $125.00 per month.
