Medicare Levy Calculator Australia 2025-26
Calculate your Medicare levy (2% of taxable income) and whether the Medicare Levy Surcharge (1–1.5%) applies to you for 2025-26. Toggle private hospital cover to see the MLS saving.
Total Medicare Obligation
$1,800
per year
2025-26 Medicare Levy Surcharge Thresholds
| Income (Single) | MLS Rate | Annual MLS on midpoint |
|---|---|---|
| Up to $101,000 | 0% | — |
| $101,001 – $118,000 | 1.0% | $1,095 |
| $118,001 – $153,000 | 1.25% | $1,694 |
| $153,001+ | 1.5% | $3,000 (on $200k) |
Frequently Asked Questions
What is the Medicare levy in Australia?
The Medicare levy is a 2% tax on your taxable income that funds Australia's public health system (Medicare). Low-income earners pay a reduced rate or nothing — singles earning below $26,000 (approx) are exempt.
What is the Medicare Levy Surcharge?
The Medicare Levy Surcharge (MLS) is an extra 1–1.5% levy on top of the standard 2% Medicare levy. It applies if your income exceeds $101,000 (single) or $202,000 (family) and you don't have adequate private hospital cover. Taking out private cover avoids the surcharge.
What is the Medicare Levy Surcharge threshold for 2025-26?
The 2025-26 MLS income thresholds are: Tier 1 — $101,000–$118,000 (1%); Tier 2 — $118,001–$153,000 (1.25%); Tier 3 — above $153,001 (1.5%).
Is the Medicare levy the same as the Medicare Levy Surcharge?
No. Everyone (above the low-income threshold) pays the standard 2% Medicare levy. The MLS is an additional charge that only applies to higher-income earners without private hospital cover. They are separate.
Do families pay a different Medicare levy?
Families have a higher low-income threshold before the levy applies — starting at $43,846 plus $4,027 per dependent child for 2025-26. This protects lower-income families from the levy.