Medicare Levy Calculator

The Medicare levy is a 2% tax on your taxable income that helps fund Australia's public healthcare system. Most Australian taxpayers pay this levy.

The MLS is an additional tax of 1% to 1.5% for high-income earners who don't have private hospital cover. It's designed to encourage people to take out private health insurance.

For singles, the MLS applies if your income exceeds $93,000 and you don't have private hospital cover. For families, the threshold is $186,000 plus $1,500 for each dependant child after the first.

You may be exempt or pay a reduced Medicare levy if your income is below certain thresholds, or if you're a low-income earner, senior, or in certain other categories. The low-income threshold is around $26,000 for singles.

If you earn over $93,000, compare the cost of basic hospital cover versus the MLS amount. Often, entry-level hospital cover costs less than the surcharge, plus you get the benefit of private health coverage.

For 2025-26, the Medicare levy low-income threshold is $26,000 for singles. If you earn between $26,000 and $32,500, you pay a reduced rate. Families have higher thresholds that increase with dependants.

Having a Medicare card is separate from the Medicare levy. Australian residents for tax purposes generally pay the levy regardless of whether they have a Medicare card. Non-residents may be exempt.

For singles: 1% ($93,001-$108,000), 1.25% ($108,001-$144,000), and 1.5% (over $144,000). Family thresholds are double these amounts, adjusted for dependant children.

You need private hospital cover (not just extras or general cover) to avoid the MLS. Basic hospital policies that cover you for public hospital treatment as a private patient are usually sufficient.

Yes, the Medicare levy is automatically included in the PAYG tax withheld by your employer. You don't need to pay it separately - it's calculated as part of your overall tax liability.