Medicare levy calculator 2026-27
Work out your Medicare levy, the low-income reduction, and whether you will pay the Medicare levy surcharge without private hospital cover. Includes single and family thresholds.
Your result (2026-27)
Total Medicare levy and surcharge
$3,300.00
Without hospital cover you pay $1,100 in surcharge this year. A basic hospital policy that costs less than that would leave you better off.
The ATO has not yet published the 2026-27 low-income thresholds, so the 2025-26 thresholds ($28,011 and $35,013) are used for the levy reduction. Surcharge thresholds are the published 2026-27 figures.
Not sure which thresholds apply to you?
Family income, dependants, pensioner offsets and exemptions all change the levy and surcharge. A registered tax agent can work it out for your return.
Browse all registered tax agentsMedicare levy surcharge thresholds 2026-27
The surcharge applies to income for MLS purposes when you do not hold appropriate private hospital cover. Family thresholds rise by $1,500 for each dependent child after the first.
| Tier | Singles | Families | Surcharge |
|---|---|---|---|
| Base tier | $105,000 or less | $210,000 or less | 0% |
| Tier 1 | $105,001 to $123,000 | $210,001 to $246,000 | 1% |
| Tier 2 | $123,001 to $164,000 | $246,001 to $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.50% |
Medicare levy surcharge thresholds 2025-26
Use these for the tax return covering 1 July 2025 to 30 June 2026.
| Tier | Singles | Families | Surcharge |
|---|---|---|---|
| Base tier | $101,000 or less | $202,000 or less | 0% |
| Tier 1 | $101,001 to $118,000 | $202,001 to $236,000 | 1% |
| Tier 2 | $118,001 to $158,000 | $236,001 to $316,000 | 1.25% |
| Tier 3 | $158,001 or more | $316,001 or more | 1.50% |
Medicare levy low-income thresholds
For 2025-26, singles who are not entitled to the seniors and pensioners tax offset pay no levy on taxable income up to $28,011, a reduced levy up to $35,013, and the full 2%above that. The ATO publishes each year's thresholds after they are legislated; until the 2026-27 figures are out, this calculator uses the 2025-26 thresholds for both years.
Not covered by this calculator: the family low-income reduction, the higher thresholds for people entitled to SAPTO, and Medicare levy exemptions (for example some foreign residents and people with certain medical conditions). For your overall tax position, use the income tax calculator.
Sources: ATO Medicare levy reduction for low-income earners, ATO MLS income thresholds and rates.
Frequently asked questions
What is the Medicare levy?+
The Medicare levy is 2% of your taxable income and helps fund Australia's public health system. It is worked out when you lodge your tax return and most employers withhold it from each pay.
Who pays a reduced Medicare levy?+
In 2025-26 a single person (not entitled to the seniors and pensioners tax offset) pays no levy on taxable income of $28,011 or less. Between $28,011 and $35,013 the levy is 10c for each $1 over the lower threshold, which is less than 2%. Families and people entitled to SAPTO have higher thresholds.
What is the Medicare levy surcharge?+
The Medicare levy surcharge (MLS) is an extra 1% to 1.5% charged on top of the Medicare levy if your income for MLS purposes is above $105,000 (singles) or $210,000 (families) in 2026-27 and you, your spouse and dependants do not hold an appropriate level of private hospital cover.
How do I avoid the Medicare levy surcharge?+
Hold an appropriate level of private patient hospital cover for yourself, your spouse and your dependants for the full income year. Extras-only cover does not count. You only pay the surcharge for the days you were not covered.
What income counts for the Medicare levy surcharge?+
Income for MLS purposes is your taxable income plus reportable fringe benefits, total net investment losses and reportable super contributions, among other items. It can be higher than your taxable income, which is why the calculator asks for fringe benefits.
How are family thresholds worked out?+
For families, the surcharge tier is based on combined family income. The 2026-27 family base-tier threshold is $210,000, and it increases by $1,500 for each dependent child after the first. Each partner pays the surcharge on their own income.
General information only, not tax advice. Estimates use Australian resident rates published by the ATO (rates last checked 27 September 2026) and assume no other income, offsets or exemptions unless entered. Nothing you enter leaves your browser. For advice on your own situation, speak to a registered tax agent.