Medicare Levy Surcharge Calculator

Work out whether the Medicare levy surcharge applies to you and what it costs. The surcharge is charged on your whole income for MLS purposes, not just the part above the threshold, so crossing a tier boundary by one dollar costs the full step.

Your details

Income for MLS purposes

Family status

Dependent children

I hold private hospital cover

Medicare levy surcharge

$1,200.00

Income for MLS purposes: $120,000
Surcharge rate: 1.0%
Surcharge payable: $1,200.00
Per fortnight: $46.15

The surcharge is charged on your whole income for MLS purposes, not just the amount above the threshold. One dollar over a tier boundary costs the full step.

Worked examples, with the arithmetic.

The same sums the tool runs, on real figures. Every number below is computed by the tested engine from the published rates, so the prose and the tool can never disagree.

What is the surcharge on $120,000 with no hospital cover?

$120,000 falls in tier 1, $105,001 to $123,000
$120,000 x 1%              = $1,200.00

A single earner on $120,000 without private hospital cover pays $1,200.00, which is $46.15 a fortnight. The rate applies to the whole income, not just the amount above $105,000.

What does crossing a tier boundary cost?

$123,000 at 1%      = $1,230.00
$123,001 at 1.25%   = $1,537.51
one extra dollar of income    = $307.51 more surcharge

Because the surcharge is charged on your entire income rather than marginally, one dollar over a tier boundary costs the full step. On $170,000 the surcharge is $2,550.00, and a policy costing less than that is cheaper than the tax.

Is this accurate, and how does it work?

The method is published rather than described. Nothing here is a black box, and the limits are listed as plainly as the workings.

1Work out income for MLS purposes. Taxable income plus reportable fringe benefits, total net investment losses and reportable super contributions. If you have a spouse, the combined figure is used and the family thresholds apply.
2Find the tier. Four tiers apply: nil, 1%, 1.25% and 1.5%. The family threshold is double the single threshold, and rises a further $1,500 for each dependent child after the first.
3Charge the rate on the whole income. Unlike income tax, the surcharge is not marginal. The rate for your tier applies to your entire income for MLS purposes, which is why the cost jumps at each boundary.

What this does not cover.

It assumes you either held appropriate hospital cover for the whole year or not at all. Part-year cover is apportioned by days and is not modelled.
It does not compare the surcharge against the cost of a hospital policy, which is the decision most people actually want to make.
Income for MLS purposes is entered by you. It is not the same as your salary and is usually higher than taxable income.
It does not model the Lifetime Health Cover loading, which is a separate premium penalty rather than a tax.

Where these figures come from.

ATO, Medicare levy surcharge income, thresholds and rates, the source gave its own last updated date as 2026-06-22. Retrieved 2026-09-11.
ATO, Medicare levy, the source gave its own last updated date as 2026-08-13. Retrieved 2026-09-02.

Every rate this site uses is listed on the Methodology page.

Common questions.

What are the Medicare levy surcharge thresholds for 2026-27?

For a single, nothing is payable up to $105,000. From $105,001 to $123,000 the rate is 1%, from $123,001 to $164,000 it is 1.25%, and above $164,000 it is 1.5%. The family thresholds are double those figures, rising a further $1,500 for each dependent child after the first.

How do I avoid the Medicare levy surcharge?

Hold an appropriate level of private patient hospital cover for the full income year. Extras-only cover does not count, and neither does travel or ambulance cover. Whether the premium costs less than the surcharge depends on your income and the policy, and this page does not compare them.

Is the surcharge the same as the Medicare levy?

No. The Medicare levy is 2% of taxable income and almost everyone pays it. The surcharge is an additional 1% to 1.5% charged only on higher earners who do not hold private hospital cover. They are calculated separately and can both apply at once.

What if I only had cover for part of the year?

The surcharge is worked out on the days you were without an appropriate policy. This calculator assumes cover for the full year or none of it, so a part-year policy needs the ATO calculator or your tax agent.

Related pages.

Income Tax CalculatorWork out income tax, the Medicare levy and the low income tax offset on any salary for 2026-27, with the bracket-by-bracket working shown.
Division 293 CalculatorWork out Division 293 tax on concessional super contributions once income plus contributions passes the $250,000 threshold.
Salary Sacrifice CalculatorSee what salary sacrificing into super saves in tax and costs in take-home pay, with the 15% contributions tax netted off.
Wage CalculatorWork out your take-home pay after tax for 2026-27. Hourly, weekly, fortnightly and monthly, with PAYG, the Medicare levy and super shown separately.

Every calculator on this site is listed on the Wage Calculator page.