Guides
Medicare levy surcharge thresholds 2026–27
Medicare levy surcharge (MLS) thresholds for singles in 2026–27, plus a calculator for the surcharge rate and the 2% Medicare levy.
Medicare levy surcharge calculator
Higher-income earners without appropriate private hospital cover may pay MLS on top of the Medicare levy. Enter income for MLS purposes to see the 2026–27 singles rate.
2026–27 Medicare levy surcharge
1.25% $1,500 / year
Without eligible cover, MLS on $120,000 is 1.25% (about $1,500). The 2% Medicare levy is separate — about $2,400.
Medicare levy surcharge threshold (2026–27)
Single-tier MLS thresholds used in TaxPayCalculator for 2026–27. Family and dependant thresholds are higher — confirm on the ATO site for couples.
| Income for MLS purposes | Surcharge rate |
|---|---|
| Under $101,000 | 0% |
| $101,000 – $117,999 | 1% |
| $118,000 – $157,999 | 1.25% |
| $158,000 and over | 1.5% |
Tick Private hospital cover above (or in the take-home calculator) if you hold eligible cover and should not attract MLS.
Medicare levy
Most Australian residents pay a Medicare levy of 2% of taxable income. The levy helps fund public health services. Foreign residents are generally not liable for the Medicare levy.
If you are eligible for a full Medicare levy exemption, turn on that option under More options in the calculator.
Low-income shade-in (2026–27)
People on lower incomes may pay a reduced levy or none at all. For singles in 2026–27, the shade-in range used in our estimate is roughly:
- Below $28,011 — no Medicare levy in the standard shade-in model we apply.
- $28,011 – $35,014 — reduced (shaded-in) levy.
- Above $35,014 — full 2% levy.
Family thresholds and dependants can change the outcome — treat calculator figures as a single-person planning estimate unless you adjust for your situation with a tax professional.
How this shows in take-home pay
On an annual view, Medicare (and MLS where applicable) reduces net pay alongside income tax and any HELP. Period withholding follows ATO PAYG rules and may not match a simple annual ÷ periods split — especially once offsets and study loans are involved.
Common questions
What is the Medicare levy surcharge threshold?
For singles in 2026–27, the Medicare levy surcharge (MLS) starts above $101,000 of income for MLS purposes if you do not hold eligible private hospital cover. The next tiers are $118,000 (1.25%) and $158,000 (1.5%). Family thresholds are higher.
How do I calculate the Medicare levy surcharge?
MLS is a percentage of income for MLS purposes: 0% at or below $101,000, then 1%, 1.25% or 1.5% in the higher singles tiers for 2026–27. Eligible private hospital cover reduces the surcharge to $0. It is separate from the 2% Medicare levy.
What is the Medicare levy in Australia?
Most Australian residents pay a Medicare levy of 2% of taxable income. Lower incomes may pay a reduced levy or none (shade-in between $28,011 and $35,014 for singles in 2026–27). Foreign residents are generally not liable.
General information only — not personal tax or health insurance advice. Confirm thresholds on the ATO Medicare pages.