Medicare Levy · Calculator

Medicare Levy & MLS Calculator Australia

Work out how much you'll pay in Medicare Levy and whether you're liable for the Medicare Levy Surcharge. The levy is generally up to 2%, with an individual low-income reduction; MLS is an additional charge for higher earners without private hospital cover.

2% Medicare Levy1%–1.5% MLSSingles & Families
01 —INPUTS

2026-27 Medicare levy and Medicare Levy Surcharge settings

02 —RESULTS
Awaiting input

Enter your taxable income to calculate Medicare Levy

Edit inputs ↑
Levy vs surcharge

Understanding Medicare Levy vs MLS

Medicare Levy (2%)

A tax paid by most Australian residents to fund the public healthcare system. It applies regardless of whether you use public or private healthcare.

Medicare Levy Surcharge (1–1.5%)

An additional tax that only applies to higher-income earners who do not have eligible private hospital insurance. Designed to encourage higher earners to take out private cover.

The key difference: you can avoid the MLS by having private hospital cover, but the Medicare Levy applies to almost everyone (with some low-income exemptions).

What's included / excluded

Calculator scope

Included

→ Individual low-income Medicare levy reduction
→ Family-income Medicare levy reduction
→ MLS based on income thresholds
→ Single thresholds: $105k / $123k / $164k
→ Family base threshold: $210k + $1,500 after the first child
→ Separate MLS calculation per adult
→ Reportable fringe benefits and tier-only MLS additions
→ Individual low-income MLS exemption within a family
→ Potential savings if you take out cover

Not included

– Partial-year insurance coverage
– One spouse covered, one not
– Dependent children income
– Medicare Levy exemptions (certain visas)
– Exempt foreign employment and section 98 trust income
– Private health insurance rebate

The main calculator includes both the individual low-income reduction and the family-income reduction. The latest ATO-published low-income thresholds are for 2025-26; this page carries those official values into the 2026-27 planning estimate until the ATO publishes the next set. For SAPTO and more detailed circumstances, use our Medicare Levy Reduction Calculator.

Private health decision guides

Should you buy cover?

If your next question is not just "how much MLS will I pay?" but "should I buy cover?", these guides break the decision into the main moving parts:

Private health vs MLS

Use a break-even comparison before deciding that hospital cover is worth buying.

Is private health insurance worth it?

Use MLS, rebate, and premium logic together in one decision framework.

Private health rebate guide

Move from sticker premium to net premium before comparing against MLS.

LHC loading guide

Check whether delayed cover makes your premium materially more expensive.

Family MLS thresholds

See how spouse income and dependant children change the household decision.
Next step if still unsure

Check the rule that most often changes the outcome

Unsure whether your policy actually avoids MLS?

Check the hospital-cover rule, excess limits, and why extras-only cover can still leave you paying the surcharge.

Read the MLS cover explainer →

Income near the levy threshold?

See when the low-income reduction means the standard 2% Medicare levy estimate is too high.

Read the levy reduction explainer →
FAQ
What is the Medicare Levy?
The Medicare Levy is generally up to 2% of taxable income and helps fund Australia's public healthcare system. Low-income earners may be exempt or pay a reduced rate. This calculator includes the individual low-income reduction.
What is the Medicare Levy Surcharge (MLS)?
The Medicare Levy Surcharge is an additional tax of 1% to 1.5% that applies to higher-income earners who do not have eligible private hospital insurance. For singles, the base threshold is $105,000 in 2026-27.
Do I need to pay the MLS?
You may need to pay MLS if your income for MLS purposes exceeds $105,000 as a single and you do not have eligible hospital cover. For 2026-27, the single tiers are 1% to $123,000, 1.25% to $164,000, then 1.5%.
What counts as eligible private health insurance?
To avoid the MLS, you need a private hospital insurance policy with an excess of $750 or less for singles ($1,500 for families). Extras-only cover or general treatment policies do not count — you specifically need hospital cover. The policy must be held for the full financial year to get the full exemption.
Is the MLS worth avoiding with private health insurance?
It depends on your MLS liability, the net premium and the cover itself. Compare the calculator's estimated MLS with the annual hospital premium after any private health insurance rebate. Do not assume cover is cheaper purely because your taxable income is high: the MLS tier uses income for MLS purposes and the policy must cover you and all relevant dependants for the applicable days.
What is the family MLS threshold?
The base family MLS threshold for 2026-27 is $210,000. It increases by $1,500 for each dependent child after the first.
How is MLS calculated for families?
The MLS rate is determined by combined family income for MLS purposes, but the surcharge is calculated separately for each adult. The rate applies to that adult's taxable income, reportable fringe benefits and any income on which family trust distribution tax was paid. A family member whose own MLS income is at or below the individual low-income threshold does not pay MLS.
What is income for MLS purposes?
ATO income for MLS purposes starts with taxable income and adds reportable fringe benefits, total net investment losses, reportable super contributions and certain trust or exempt foreign employment amounts. Some additions determine the tier without forming part of the amount charged. This calculator separately collects surcharge-base additions and tier-only additions.
Are these calculations updated for 2026-27?
Yes. The default uses 2026-27 Medicare and MLS settings, and you can switch to 2025-26 in the calculator.

Tax Accuracy & Sources

Reviewed: 17 July 2026 · Tax year: 2026-27

Estimates Medicare levy (including individual and family low-income reductions) and MLS from taxable income, family details and optional MLS income additions. The 2026-27 MLS tiers are official. The Medicare low-income reduction carries the latest ATO-published 2025-26 thresholds until the next annual thresholds are published. It excludes partial-year cover, SAPTO eligibility, exempt foreign employment and section 98 trust income.

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