Medicare Levy Surcharge Calculator Australia

Check whether you pay the Medicare Levy Surcharge (MLS) and estimate 1%, 1.25% or 1.5% liability using 2025-26 singles thresholds — before you compare private hospital cover.

Enter your figures

Income for MLS purposes ($)

Taxable income plus common add-backs (e.g. reportable fringe benefits). Singles thresholds used.

I had adequate private patient hospital cover for the full year (generally removes MLS)

Your results

Results appear here instantly — no page jump.

Why Australians search for an MLS calculator

Generic “tax calculator” results rarely answer the question people actually have: Will I pay the Medicare Levy Surcharge this year, and is private hospital cover cheaper than the surcharge? Because CalculatorQuest is a .com.au site, this tool focuses on ATO MLS tiers rather than overseas Medicare-style systems that do not apply here.

Enter your expected income for MLS purposes and toggle whether you had adequate private patient hospital cover for the year. You will see your tier, surcharge dollars, and a rough 2% Medicare levy comparison so you can sanity-check quotes from health funds. For full take-home pay (income tax + levy + MLS + HECS), use the Australian pay calculator. For a plain-English walkthrough, read Medicare levy surcharge explained.

How the Medicare Levy Surcharge is calculated

MLS applies to your income for MLS purposes (taxable income plus certain add-backs such as reportable fringe benefits) when you do not hold adequate private patient hospital cover. Rates for singles (2025-26):

$0 – $93,000 → 0%
$93,001 – $108,000 → 1.0% (Tier 1)
$108,001 – $144,000 → 1.25% (Tier 2)
$144,001+ → 1.5% (Tier 3)

Family thresholds are higher. This tool uses singles bands for a quick estimate. See the ATO for exact family and dependant rules.

Worked example: $120,000 without hospital cover

Income for MLS purposes = $120,000 (single, no private hospital cover).
That sits in Tier 2 → rate 1.25%.
MLS ≈ 120,000 × 0.0125 = $1,500 for the year.
Standard Medicare levy is still about 2% ($2,400). Combined Medicare-related charges ≈ $3,900 before income tax.

Frequently Asked Questions

What is the Medicare Levy Surcharge?

The Medicare Levy Surcharge (MLS) is an extra 1%–1.5% tax for higher-income Australians who do not hold adequate private patient hospital cover for the year. It is separate from the standard 2% Medicare levy.

What are the MLS thresholds for singles in 2025-26?

For singles, MLS starts above $93,000 income for MLS purposes. Tier 1 (1%) applies up to $108,000, Tier 2 (1.25%) up to $144,000, and Tier 3 (1.5%) above $144,000. Family thresholds are higher.

How do I avoid the Medicare Levy Surcharge?

Hold an appropriate level of private patient hospital cover for yourself (and family members counted for MLS) for the full income year. Hospital cover that meets ATO rules generally removes the surcharge even if your income is above the threshold.

Is MLS the same as the Medicare levy?

No. The Medicare levy is generally 2% of taxable income for most residents. The MLS is an additional surcharge on top for higher earners without private hospital cover. Use our pay calculator to see both in take-home pay.

Related Calculators

💰

Pay Calculator

Calculate your take-home pay, income tax, Medicare levy, and superannuation

📊

Tax Refund Calculator

Estimate your tax refund or amount owing for the current financial year

🎓

HECS/HELP Debt Calculator

Calculate your HECS/HELP debt repayments and plan payments

🎯

Salary Sacrifice Calculator

Calculate the benefits of salary sacrificing into superannuation