Calculator
Medicare Levy Calculator Australia
Estimate the 2% Medicare levy on your income and check whether the surcharge could apply to you.
Short answer
The Medicare levy is 2% of taxable income for most Australian residents, reduced or nil for singles earning between $28,011 and $35,013. The separate Medicare levy surcharge adds 1% above $105,000, 1.25% above $123,000 and 1.5% above $164,000 for singles without private hospital cover.
Medicare levy (2%)
$1,600
$133 per month
Medicare levy surcharge
$0
Not payable - you have cover
The Medicare levy is generally 2% of taxable income. The surcharge is separate and only applies to higher earners without adequate private hospital cover. Low-income thresholds may reduce or remove the levy.
Medicare levy vs surcharge
The Medicare levy (2%) applies to most residents. The Medicare levy surcharge is extra, only for higher earners without private hospital cover, and is designed to encourage private cover. They are two different charges.
Low-income exemptions
If your income is below the low-income threshold you may pay a reduced levy or none. Thresholds are higher for families and increase per dependent child. See Medicare levy explained.
Frequently asked questions
Do foreign residents pay the Medicare levy?+
Generally no. Foreign residents and many working holiday makers are not entitled to Medicare and do not pay the levy.
How do I avoid the surcharge?+
Hold an appropriate level of private hospital cover for the full year. The surcharge only applies to higher earners without it.
Are the low-income thresholds exact here?+
We use the 2025-26 legislated low-income thresholds - the latest set by Parliament. The 2026-27 thresholds are announced at Budget time and applied retrospectively, so treat the low-income result as a guide.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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