How to Use the Medicare Levy Calculator
- Enter your taxable income.
- Untick the hospital cover box if you don't have an appropriate level of private hospital cover, to see the surcharge.
- Select Calculate to see your total Medicare levy and surcharge.
How the Medicare Levy Calculator Works
Most Australian residents pay two, separate charges related to Medicare: the levy itself, which nearly everyone pays, and the surcharge, which only applies to higher earners without private hospital cover.
Medicare Levy Rate and Thresholds (2026–27)
The standard Medicare levy is 2% of taxable income. Singles earning $28,011 or less pay no levy, with a phase-in zone just above that threshold. On a $130,000 income, the levy is $2,600. Source: ATO — Medicare levy reduction for low-income earners.
Medicare Levy Surcharge Tiers (2026–27)
| Single income | Family income | Surcharge rate |
|---|---|---|
| $105,000 or less | $210,000 or less | Nil |
| $105,001–$123,000 | $210,001–$246,000 | 1% |
| $123,001–$164,000 | $246,001–$328,000 | 1.3% |
| $164,001+ | $328,001+ | 1.5% |
Family thresholds rise by $1,500 for each dependent child after the first. Source: ATO — Medicare levy surcharge income, thresholds and rates.
Worked Example
A single person earning $130,000 without hospital cover pays $2,600 in Medicare levy plus $1,625 in surcharge — a total of $4,225. With hospital cover, only the $2,600 levy applies.
Is Private Hospital Cover Worth It Just to Avoid the Surcharge?
Often, yes, purely on the numbers. Basic hospital cover that meets the appropriate-level requirement can cost less per year than the surcharge itself once you're well into Tier 1 or above, especially for younger policyholders. It's worth comparing an actual quote from a health fund against your surcharge estimate above — and remembering that Lifetime Health Cover loading is a separate incentive that applies if you don't take out hospital cover before the July after you turn 31, adding a further reason to decide earlier rather than later. Source: privatehealth.gov.au — Lifetime Health Cover.
Who Is Exempt From the Medicare Levy Entirely
Beyond the low-income thresholds, a small number of taxpayers are exempt from the Medicare levy for all or part of the year — foreign residents for tax purposes, some temporary visa holders not eligible for Medicare, and people who meet certain medical exemption categories (such as being a blind pensioner or receiving specific Australian Government allowances). These exemptions are claimed through your tax return, not through this calculator.
Family Income Thresholds
For couples and families, both the levy's low-income threshold and the surcharge's tiers use a combined family income test rather than each partner's income separately, and the surcharge's family thresholds rise for each dependent child after the first. This calculator's family mode reflects that adjustment for the surcharge; the underlying levy calculation itself is still based on each person's own taxable income when you lodge separately.
Reporting Your Private Health Insurance
If you hold an appropriate level of private hospital cover, your health fund reports this directly to the ATO, and it pre-fills into your tax return automatically. There's nothing extra to claim — the absence of a surcharge is simply applied once the ATO can see you were covered for the relevant period of the year. Partial-year cover only avoids the surcharge for the days you actually held it.
See the levy alongside your full income tax and HECS-HELP with our Take Home Pay Calculator Australia, or check every current threshold on our Australian Tax Rates and Brackets.