Medicare Levy Surcharge Calculator
Based on your income, having nib health cover may help you avoid the Medicare Levy Surcharge. Use our calculator to see the extra tax you might pay.
What is the Medicare Levy Surcharge?
If you are an Australian taxpayer eligible for Medicare who doesn't have private hospital insurance, and you earn over a certain amount, you may have to pay the Medicare Levy Surcharge (MLS). The MLS is a Federal Government initiative and is an extra 1% to 1.5% in tax on top of the normal 2% Medicare Levy we all have to pay if you don't hold private Hospital cover.
Learn how the Medicare Levy Surcharge works and what you could do to avoid it
- How does it affect me and my tax?
- How to avoid the Medicare Levy Surcharge
How does it affect me and my tax?
If you earn above the Australian Government income threshold and don’t have an appropriate level of private hospital cover for the full financial year, you may have to pay the Medicare Levy Surcharge. This is an additional tax on top of the standard Medicare Levy. Thresholds and rates may change, so check the latest information on the ATO Medicare Levy Surcharge thresholds and rates page.
Annual taxable income | Medicare Levy Surcharge |
|---|---|
$105,000 or less | 0.0% (no extra tax) |
$105,001 – $123,000 | 1.0% |
$123,001 – $164,000 | 1.25% |
$164,001 or more | 1.5% |
Above table: Thresholds for individuals for the 2026–27 income year
Combined annual taxable income | Medicare Levy Surcharge |
|---|---|
$210,000 or less | 0.0% (no extra tax) |
$210,001 – $246,000 | 1.0% |
$246,001 – $328,000 | 1.25% |
$328,001 or more | 1.5% |
Above table: Thresholds for couples, families and single parent families (based on your combined incomes) for the for the 2026–27 income year
Source: Australian Tax Office. These thresholds apply for the 2026–27 income year. For families, and single parent families the threshold increases by $1,500 for each dependant child after the first. There are specific rules for calculating income for Medicare Levy Surcharge purposes. For more information visit The Australian Taxation Office.
Medicare Levy Surcharge Calculator
Frequently asked questions
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More information on the Medicare Levy Surcharge
The Australian Tax Office has specific rules regarding who is covered under the Medicare Levy Surcharge and how to define your income for Medicare Levy Surcharge purposes. For information get in touch with your accountant, financial planner or visit The Australian Tax Office.