Medicare levy and surcharge calculator
Most residents pay a 2% Medicare levy on taxable income: $2,200 on $110,000. Without private hospital cover, the surcharge adds another $1,100, because that income is over the $105,000 single threshold.
Medicare levy
The levy is 2% of taxable income and is charged on top of income tax (the ATO's tax rate tables leave it out). People on low incomes pay less or nothing:
| No levy up to | Reduced levy up to | |
|---|---|---|
| Single | $28,011 | $35,013 |
| Single, entitled to SAPTO | $44,268 | $55,335 |
| Family (no children) | $47,238 | $59,047 |
| Each dependent child adds | $4,338 | $5,423 |
These are the 2025–26 thresholds. The 2026–27 figures had not been published when we last checked; even the 2025–26 ones were only legislated on 30 June 2026. The law applies them to later years until they are changed, so this calculator uses them. Example from the ATO: on $29,000 the levy is 10% of the $989 over $28,011, which is $98.90 instead of $580.00.
Medicare levy surcharge tiers
| Base (0%) | Tier 1 (1%) | Tier 2 (1.25%) | Tier 3 (1.5%) | |
|---|---|---|---|---|
| 2026–27 single | $105,000 or less | $105,001 – $123,000 | $123,001 – $164,000 | $164,001 and over |
| 2026–27 family | $210,000 or less | $210,001 – $246,000 | $246,001 – $328,000 | $328,001 and over |
| 2025–26 single | $101,000 or less | $101,001 – $118,000 | $118,001 – $158,000 | $158,001 and over |
| 2025–26 family | $202,000 or less | $202,001 – $236,000 | $236,001 – $316,000 | $316,001 and over |
The surcharge applies only if you don't have private patient hospital cover. Income for surcharge purposes is taxable income plus reportable fringe benefits, net investment losses and reportable super contributions (salary sacrifice). The rate applies to the whole amount, so crossing a tier by $1 costs a lot: at $105,001 the surcharge is $1,050.01.
The ATO's example for 2026–27: taxable income of $90,000 plus $27,000 of reportable fringe benefits is $117,000, which is in Tier 1, so the surcharge is 1% of $117,000 = $1,170.
Families
For couples and families the tier depends on combined income ($210,000 for the base tier in 2026–27, plus $1,500 for each dependent child after the first), but each person pays the surcharge on their own income. A family with income under $47,238 (plus $4,338 per child) may also get a lower Medicare levy, which this calculator does not work out.
Who doesn't pay
Foreign residents for tax are not required to pay the Medicare levy (see the non-resident tax calculator). Some residents can also get a full or half exemption from the levy.
FAQ
Is the Medicare levy included in the tax rates?
No. The resident tax rates (0% to 45%) do not include the 2% Medicare levy, which is added on top. PAYG withholding from your pay does include it.
How much is the Medicare levy on $90,000?
$1,800 on $90,000 of taxable income, or $1,780 on a $90,000 salary after the $1,000 standard deduction.
What are the Medicare levy surcharge thresholds for 2026–27?
Singles: no surcharge up to $105,000, 1% up to $123,000, 1.25% up to $164,000 and 1.5% above. Families: $210,000, $246,000 and $328,000.
Does salary sacrifice count towards the surcharge?
Yes. Salary sacrificed super is a reportable super contribution, so it is added back to your income for surcharge purposes.