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Medicare Levy & Surcharge Calculator

Work out your Medicare levy and whether you owe the Medicare Levy Surcharge (MLS) for 2025-26.

Inputs

AUD
MLS income includes taxable income, reportable fringe benefits, reportable super contributions, and total net investment losses. This calculator uses taxable income only. Extras-only (dental/optical) cover does not count — you need qualifying private patient hospital cover.

Total Medicare

Medicare levy + surcharge
$0

How Medicare levy works

The standard Medicare levy is 2% of your taxable income, paid by most Australian residents to fund the public health system. Low-income earners are exempt below $29,207 (single) or $49,216 (family) and pay a reduced amount in the phase-in range.

The Medicare Levy Surcharge (MLS) is an additional 1%–1.5% that applies to higher-income earners who do not hold appropriate private patient hospital cover. For 2025-26 the single threshold is $101,000 (Tier 1 at 1%), rising to 1.25% above $118,000 and 1.5% above $144,000. The family threshold is $202,000, increasing by $1,500 per dependent child after the first.

If your private hospital cover has an excess above $750 (singles) or $1,500 (families), it may not qualify as "appropriate cover" for MLS purposes.

FAQ

Does salary sacrifice reduce the MLS?
No. Salary sacrifice into super reduces taxable income, but the sacrificed amount is added back as a reportable employer super contribution when calculating MLS income. The most effective way to avoid the MLS is to hold qualifying private hospital cover.
What qualifies as private hospital cover for MLS purposes?
You need private patient hospital cover (not extras-only) with a registered Australian insurer. The excess must not exceed $750 for singles or $1,500 for families. Overseas Student Health Cover (OSHC) does not count.
Is the MLS calculated on the full income or just the excess?
The MLS is calculated on your entire income for MLS purposes — not just the amount above the threshold. This means crossing the threshold can increase your total tax more than you might expect.
What is the Medicare levy low-income exemption?
Singles with taxable income below $27,222 pay no Medicare levy. Between $27,222 and $34,028, a reduced levy applies. The family low-income threshold is $45,907, rising by $4,217 per dependent child.