Medicare · Reference
Medicare levy surcharge thresholds 2026-27 Australia
Quick answer: for 2026-27, MLS starts once a single adult without appropriate hospital cover moves above 105,001.00 income. For families, the base threshold is 210,000.00, with an extra 1,500.00 added for each dependant child after the first.
Looking for 2025-26? See the 2025-26 edition.
Single thresholds
| Income | MLS rate | Decision lens |
|---|---|---|
| 0.00 to 105,000.00 | 0.00% | No surcharge. |
| 105,001.00 to 123,000.00 | 1.00% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
| 123,001.00 to 164,000.00 | 1.25% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
| 164,001.00+ | 1.50% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
Family thresholds
| Dependants | Tier 1 starts | Tier 2 starts | Tier 3 starts |
|---|---|---|---|
| Couple, no children | $210,000.00 | $246,000.00 | $328,000.00 |
| 1 child | $210,000.00 | $246,000.00 | $328,000.00 |
| 2 children | $211,500.00 | $247,500.00 | $329,500.00 |
| 3 children | $213,000.00 | $249,000.00 | $331,000.00 |
What usually gets missed
- The surcharge decision is tied to hospital cover, not extras-only cover.
- Family MLS is based on combined income even though the charge is levied separately to each adult.
- A small pay rise near the threshold can change the tax cost of staying uninsured.
Run the MLS calculator
Model resident status, spouse income and dependants instead of guessing from the threshold table.
Compare cover vs MLS
Use the decision hub if you need the tax and premium trade-off rather than just the thresholds.
Family threshold explainer
Open the dedicated family guide if your combined household income is what matters.
Tax Accuracy & Sources
This page summarizes 2026-27 Medicare levy surcharge thresholds for planning and comparison. It assumes standard resident treatment.