Medicare levy surcharge calculator
This Medicare levy surcharge calculator shows how much Medicare levy you pay and whether you also owe the surcharge for not holding private hospital cover. It uses the 2026-27 thresholds for singles and families, adjusts for dependent children, and shows the income where the surcharge starts.
Updated 12 November 2026 · Uses 2026-27 figures
Work out your Medicare levy and surcharge
Enter your income, whether you are single or a family, children and hospital cover.
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.
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Find workHow to use the Medicare levy surcharge calculator
- Enter your income for surcharge purposes: taxable income plus reportable fringe benefits, reportable super contributions and net investment losses. Families use combined income.
- Choose single or family and enter the number of dependent children.
- Say whether you hold appropriate private hospital cover for the whole year.
- Read the Medicare levy, the surcharge rate and amount, and the income up to which no surcharge applies.
Medicare levy surcharge thresholds 2026-27
The Medicare levy surcharge (MLS) is an extra 1% to 1.5% charged on top of the Medicare levy if your income is above the base threshold and you, your spouse and dependants do not hold appropriate private hospital cover.
| Tier | Singles | Families | Surcharge |
|---|---|---|---|
| Base | $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 | 1.5% |
Family thresholds rise by $1,500 for each dependent child after the first. Single parents and couples use the family thresholds.
Worked example
Single, income $105,000, no hospital cover. Income is exactly at the base threshold, so there is no surcharge. The Medicare levy is $2,100 (2%).
Single, income $115,000, no hospital cover. Income is in tier 1. The surcharge is 1% of $115,000, which is $1,150, on top of the $2,300 Medicare levy, for a total of $3,450.
Family with two children, combined income $230,000, no hospital cover. The base threshold is $211,500 ($210,000 plus $1,500 for the second child), so the family is in tier 1 and the surcharge is 1%.
The surcharge applies to your whole income, not just the part above the threshold. That is why crossing the threshold by even a few dollars can cost more than a year of basic hospital cover.
What is the Medicare levy?
The Medicare levy is 2% of taxable income and helps fund Australia's public health system. Most Australian residents pay it through tax withheld from their pay. Low-income earners pay less or none: for 2025-26, singles paid nothing up to $28,011 of taxable income, with a reduced levy up to $35,013. The 2026-27 thresholds had not been published when this page was updated, so the calculator uses the latest published figures.
Having private health insurance does not remove the 2% Medicare levy. It only removes the surcharge.
How to avoid the Medicare levy surcharge
- Hold appropriate private hospital cover for yourself and all dependants. Extras-only cover does not count. Cover held for part of the year removes the surcharge for those days only.
- Check your income for surcharge purposes, not just your salary. Salary sacrifice, an electric car on a novated lease and investment losses are added back.
- Watch one-off income. Overtime, a bonus or a second job can push you over a threshold for one year. A lump sum in arrears may be excluded in some cases.
- Compare costs. At tier 1, the surcharge on $115,000 is $1,150. A basic hospital policy may cost less, but compare excess, waiting periods and what you would actually use.
The surcharge is worked out when you lodge your tax return. Most employers do not withhold for it, so you may get a bill if you cross a threshold during the year.
Medicare levy exemption
Some people are fully or partly exempt from the 2% levy, for example certain foreign residents, people entitled to full free medical treatment through the Defence Force or Veterans' Affairs, and some people not entitled to Medicare benefits. You claim an exemption on your tax return and may need a certificate from Services Australia.
Frequently asked questions
What is the Medicare levy surcharge?
It is an extra charge of 1%, 1.25% or 1.5% of income for people above the base income threshold who do not hold appropriate private hospital cover. It is separate from, and on top of, the 2% Medicare levy.
How much is the Medicare levy surcharge?
For 2026-27 it is 1% for singles earning $105,001 to $123,000, 1.25% from $123,001 to $164,000 and 1.5% above that. Family thresholds are double, plus $1,500 for each child after the first.
Do you pay the Medicare levy if you have private health insurance?
Yes. Private health insurance does not remove the 2% Medicare levy. Appropriate private hospital cover only removes the Medicare levy surcharge.
How is the Medicare levy calculated?
It is 2% of your taxable income. People on low incomes pay a reduced levy or none. On $105,000 of taxable income the levy is $2,100.
What is the threshold for the Medicare levy surcharge?
For 2026-27 there is no surcharge for singles with income for surcharge purposes of $105,000 or less, or families with $210,000 or less, plus $1,500 for each dependent child after the first.
Who pays the Medicare levy surcharge?
Australian residents whose income for surcharge purposes is above the base threshold and who do not have appropriate private hospital cover for themselves and their dependants for the whole year.
How do I avoid paying the Medicare levy surcharge?
Take out appropriate private hospital cover for yourself and your dependants. Extras-only cover does not count. If your income is close to the threshold, remember that salary sacrifice and reportable fringe benefits are added back.
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Sources and assumptions
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.