Work out how much you'll pay in Medicare Levy and whether you're liable for the Medicare Levy Surcharge. The Medicare Levy is a flat 2% that funds public healthcare; the MLS is an additional charge for higher earners without private hospital cover.
2% Medicare Levy1%–1.5% MLSSingles & Families
01 —INPUTS
2025-26 Medicare Levy and Medicare Levy Surcharge rates
02 —RESULTS
Enter your taxable income to calculate Medicare Levy
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
→Medicare Levy at 2% of taxable income
→MLS based on income thresholds
→Single thresholds: $101k / $118k / $158k
→Family base threshold: $202k + $1,500 per child
→Separate MLS calculation per adult
→Potential savings if you take out cover
Not included
–Partial-year insurance coverage
–One spouse covered, one not
–Dependent children income
–Low-income levy reduction
–Medicare Levy exemptions (certain visas)
–RFBA / reportable super in MLS income
–Private health insurance rebate
If your income is below $34,027 (single), you may pay a reduced levy or none at all. Use our Medicare Levy Reduction Calculator to check.
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:
The Medicare Levy is a 2% tax on your taxable income that helps fund Australia's public healthcare system. Most Australian residents pay this levy, though low-income earners may be exempt or pay a reduced rate. The levy is separate from any income tax you pay and is calculated on top of your regular tax bill.
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, it applies if your income exceeds $101,000 in 2025-26. The surcharge is designed to encourage higher earners to use the private healthcare system rather than relying solely on Medicare.
Do I need to pay the MLS?
You may need to pay the MLS if your income for MLS purposes exceeds $101,000 (singles) and you don't have an eligible private hospital insurance policy. The surcharge rate increases with income: 1% for $101,001–$118,000, 1.25% for $118,001–$158,000, and 1.5% for incomes above $158,000.
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 income and the cost of private health insurance. If your MLS bill is higher than basic hospital cover premiums, getting insurance could save you money while also providing health benefits. For example, if you earn $100,000 and face a $1,000 MLS bill, but basic hospital cover costs $1,200 per year, the decision comes down to whether the health benefits are worth the extra $200.
What is the family MLS threshold?
The base family MLS threshold for 2025-26 is $202,000. This increases by $1,500 for each dependent child after the first. So a family with 2 children has a threshold of $203,500.
How is MLS calculated for families?
The MLS rate is determined by your combined family income, but the surcharge is calculated separately on each adult's taxable income. For example, if the family rate is 1% and you earn $100,000 while your spouse earns $90,000, your MLS would be $1,000 and your spouse's would be $900.
Are these calculations updated for 2025–26?
Yes. This calculator has been reviewed against Australian tax rules for the 2025–26 financial year. The Medicare Levy remains at 2%, and this page applies the 2025–26 MLS thresholds.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2025-26
Estimates Medicare levy and MLS from the taxable income and family details entered. It excludes low-income levy reductions, full MLS income add-backs, and partial-year insurance coverage.