Skip to main content
CalculatorQuest

Australian Financial Calculators

Medicare Levy Surcharge Calculator Australia

Check whether you pay the Medicare levy surcharge (MLS) and estimate it using 2026-27 single and family thresholds, before you compare private hospital cover.

Enter your figures

Taxable income plus reportable fringe benefits and reportable super contributions.

Your results

Results appear here instantly — no page jump.

Estimates only, not tax or financial advice. Results are general information based on published ATO rules and the figures you enter. For advice about your situation, speak to a registered tax agent or licensed financial adviser. How we calculate · Spotted a mistake?

Is hospital cover cheaper than the surcharge?

The surcharge is charged on your whole income once you cross a threshold, so being a dollar over the line can cost hundreds of dollars. Enter your expected income for MLS purposes and whether you had appropriate private hospital cover for the full year to see your tier and the surcharge, then compare it with hospital policy quotes. For full take-home pay (income tax, Medicare levy, MLS and HECS), use the Australian pay calculator. For a plain-English walkthrough, read Medicare levy surcharge explained.

How the Medicare levy surcharge is calculated

Your income for MLS purposes sets the tier. The tier rate is then applied to your taxable income plus reportable fringe benefits for any days you did not hold appropriate hospital cover. Thresholds for 2026-27:

Singles

  • $0 – $105,000 → 0% (Base tier)
  • $105,001 – $123,000 → 1% (Tier 1)
  • $123,001 – $164,000 → 1.25% (Tier 2)
  • $164,001+ → 1.5% (Tier 3)

Families and couples

  • $0 – $210,000 → 0% (Base tier)
  • $210,001 – $246,000 → 1% (Tier 1)
  • $246,001 – $328,000 → 1.25% (Tier 2)
  • $328,001+ → 1.5% (Tier 3)

Family thresholds rise by $1,500 for each MLS dependent child after the first.

Worked example: $120,000 without hospital cover

  1. Income for MLS purposes = $120,000 (single, no reportable fringe benefits, no private hospital cover).
  2. That sits in Tier 1 for 2026-27 → rate 1%.
  3. MLS = $120,000 × 1% = $1,200 for the year.
  4. The Medicare levy (2%) is $2,400, so Medicare-related charges total about $3,600 before income tax.

Frequently Asked Questions

What is the Medicare levy surcharge?
An extra 1% to 1.5% charged on top of the 2% Medicare levy if your income for MLS purposes is above the base threshold and you (and your dependants) do not hold appropriate private hospital cover.
What are the MLS thresholds for singles in 2026-27?
Base tier: $0 – $105,000 (0%); Tier 1: $105,001 – $123,000 (1%); Tier 2: $123,001 – $164,000 (1.25%); Tier 3: $164,001+ (1.5%).
What are the MLS thresholds for families in 2026-27?
Base tier: $0 – $210,000 (0%); Tier 1: $210,001 – $246,000 (1%); Tier 2: $246,001 – $328,000 (1.25%); Tier 3: $328,001+ (1.5%). The family thresholds increase by $1,500 for each MLS dependent child after the first.
What is income for MLS purposes?
Taxable income plus reportable fringe benefits, total net investment losses and reportable super contributions (such as salary sacrifice). The surcharge itself is calculated on taxable income plus reportable fringe benefits.
How do I avoid the Medicare levy surcharge?
Hold an appropriate level of private patient hospital cover for yourself and your dependants for the whole income year. If you are covered for only part of the year, the surcharge applies to the days without cover.

Related Calculators

Pay Calculator

Calculate take-home pay, income tax, Medicare levy, and superannuation with 2026-27 Australian tax rates.

Tax Refund Calculator

Estimate your tax refund or amount owing using current Australian tax rates.

HECS/HELP Debt Calculator

Calculate 2026-27 HECS/HELP repayments under the marginal system, starting at $69,528 repayment income.

Salary Sacrifice Calculator

Calculate the tax benefits of salary sacrificing into superannuation and other benefits.