Medicare levy surcharge calculator.

Worked example

The ATO example for 2026-27: Tom is single with $90,000 taxable income and $27,000 reportable fringe benefits, so his income for MLS purposes is $117,000. That is between $105,001 and $123,000, Tier 1, rate 1%. Surcharge = 1% × $117,000 = $1,170.

How it works

• 2026-27 singles: 0% up to $105,000; 1% from $105,001 to $123,000; 1.25% from $123,001 to $164,000; 1.5% from $164,001. Families: $210,000, $246,000 and $328,000.
• 2025-26 singles: $101,000, $118,000 and $158,000. Families: $202,000, $236,000 and $316,000.
• The family thresholds increase by $1,500 for each MLS dependent child after the first.
• The surcharge is the rate for your tier applied to your whole income for MLS purposes, not only the part above the threshold. It applies only for periods you (and your family) lack appropriate private patient hospital cover; this tool assumes you lacked cover for the full year and does not pro-rate.
• Not modelled: part-year cover, exemptions, the private health insurance rebate and the separate Medicare levy.

Sources, checked 16 October 2026: ATO: Medicare levy surcharge income, thresholds and rates (last updated 22 June 2026). Estimate only, not tax or legal advice.

FAQ

What is the Medicare levy surcharge income threshold for 2026-27?

For 2026-27 the ATO lists $105,000 for singles and $210,000 for families. Above that the surcharge is 1%, 1.25% or 1.5% depending on your tier.

Do I pay the Medicare levy surcharge if I have private health insurance?

The surcharge is for people above the thresholds without appropriate private patient hospital cover. If you hold appropriate cover for the whole year you do not pay it; this calculator shows the amount if you had none.

How is the surcharge worked out?

Your tier rate is applied to your income for MLS purposes. In the ATO example, $117,000 at 1% gives a surcharge of $1,170.

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