Work out your Medicare levy and, if you don't have private hospital cover, the Medicare levy surcharge for 2026–27.
Key facts
- The Medicare levy is 2% of taxable income.
- Low-income earners pay less: no levy up to $28,011, and 10 cents per dollar above that until the full 2% applies at $35,013 (singles).
- The Medicare levy surcharge applies if you don't have private hospital cover and your income for MLS purposes is over $105,000 (singles) or $210,000 (families).
- The surcharge is 1%, 1.25% or 1.5% of your income, depending on the tier.
- Family thresholds rise by $1,500 for each dependent child after the first.
Medicare levy surcharge thresholds 2026–27
| 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 | 1.5% |
Family thresholds increase by $1,500 for each dependent child after the first.
Medicare levy and surcharge by income
| Taxable income | Medicare levy | Surcharge (single, no cover) | Total |
|---|---|---|---|
| $20,000 | $0.00 | $0.00 | $0.00 |
| $30,000 | $198.90 | $0.00 | $198.90 |
| $35,000 | $698.90 | $0.00 | $698.90 |
| $50,000 | $1,000.00 | $0.00 | $1,000.00 |
| $90,000 | $1,800.00 | $0.00 | $1,800.00 |
| $110,000 | $2,200.00 | $1,100.00 | $3,300.00 |
| $130,000 | $2,600.00 | $1,625.00 | $4,225.00 |
| $170,000 | $3,400.00 | $2,550.00 | $5,950.00 |
| $250,000 | $5,000.00 | $3,750.00 | $8,750.00 |
Single person, income for MLS purposes equal to taxable income. The low-income thresholds shown are the 2025–26 amounts; they're usually updated after the Budget. Family low-income thresholds and the reduction for seniors and pensioners aren't included.
Common questions
How much is the Medicare levy?
2% of your taxable income. On $90,000 that's $1,800.00.
Who pays the Medicare levy surcharge?
People without an appropriate level of private hospital cover whose income for MLS purposes is over $105,000 (singles) or $210,000 (families). It's on top of the Medicare levy.
Is it cheaper to get private health insurance than pay the surcharge?
Compare the surcharge from the calculator with the price of a basic hospital policy. Above the first tier the surcharge is often more than a basic policy costs, but it depends on your income and the policy.
Do low-income earners pay the Medicare levy?
Not below $28,011 of taxable income for a single person. Between that and $35,013 the levy is reduced.
See also the income tax calculator and tax brackets.
Sources: ATO Medicare levy reduction; privatehealth.gov.au, Medicare levy surcharge. Checked 22 October 2026.