Australia Medicare Levy Calculator
Estimate the Australian Medicare levy at 2% of taxable income, including the low-income exemption and the Medicare Levy Surcharge if you have no private hospital cover. Medicare Levy Surcharge tiers apply for 2026-27.
What is this tool?
The Medicare levy is a 2% tax on taxable income that helps fund Australia's public health system (Medicare). Low-income earners are exempt. The Medicare Levy Surcharge (MLS) is an extra 1–1.5% charged to higher-income earners who do not hold private hospital cover.How it works
Enter your taxable income, choose single or family status and dependent children, and say whether you hold private hospital cover. The tool shows the Medicare levy, any MLS, and the total.Medicare levy rates and thresholds (2026-27)
The Medicare levy is 2% of taxable income. The low-income thresholds below are the latest legislated figures (2025-26, indexed in the 2026-27 Budget and backdated to 1 July 2025); the 2026-27 low-income thresholds had not been set at the time of review.
| Low-income threshold | No levy up to | Full 2% from |
|---|---|---|
| Single | $28,011 | $35,013 |
| Single, senior or pensioner (SAPTO) | $44,268 | $55,335 |
| Family | $47,238 | $59,047 |
| Family, senior or pensioner (SAPTO) | $61,623 | $77,028 |
Between the two amounts the levy shades in at 10 cents per dollar over the threshold rather than the full 2%, so it builds up gradually. The family thresholds rise by $4,338 per dependent child (and the full-levy point by $5,423).
| Taxable income | Medicare levy |
|---|---|
| $28,011 (single) | $0 |
| $31,000 (single) | $298.90 |
| $60,000 | $1,200.00 |
| $100,000 | $2,000.00 |
Medicare Levy Surcharge (MLS) tiers for 2026-27
The MLS is an extra 0%–1.5% for higher-income earners who do not hold appropriate private hospital cover. The tiers below are the ATO’s 2026-27 income-year thresholds. Once you cross a threshold the rate applies to your whole income for MLS purposes, not just the amount above it — that “cliff” is what usually makes the surcharge cost more than a basic hospital policy.
| Tier | Single | Family | MLS rate |
|---|---|---|---|
| Base | $105,000 or less | $210,000 or less | 0% |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1.0% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.5% |
Family thresholds rise by $1,500 for each dependent child after the first. Income for MLS purposes is taxable income plus reportable fringe benefits, reportable super contributions and total net investment losses, so salary sacrifice and negative gearing can push you into a higher tier even when taxable income stays below it.
How to use
- Enter taxable income in AUD.
- Choose single or family and dependents.
- Indicate private hospital cover, then Calculate.
Frequently Asked Questions
When is the Medicare levy waived?
If your taxable income is at or below the low-income threshold ($28,011 single for 2025-26, higher for families with children) the levy is $0.
What triggers the MLS?
The MLS applies only if you earn above the relevant threshold AND do not hold an appropriate private hospital cover.
Is the MLS the same as the levy?
No. The 2% levy funds Medicare for everyone; the MLS is an extra surcharge on higher incomes without private hospital insurance.
This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.
Tips & Advice
Holding an appropriate private hospital policy removes the MLS entirely, even if your income is high.Related Tools
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Sources & References
Last reviewed: September 2026.
- Australian Taxation Office – Medicare levy.
- Australian Taxation Office – Medicare levy surcharge.
Limitations
Applies the 2% Medicare levy and the low-income reduction thresholds in force from 1 July 2025, together with the 2026-27 Medicare Levy Surcharge tiers. The surcharge is shown in full, assuming no private hospital cover for the whole year — holding cover for even part of the year can remove it. Family income tests, the seniors’ and pensioners’ reduction, and exemptions for certain pensions are not modelled.