Medicare Levy Surcharge Calculator
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.
Calculate your medicare levy surcharge
Enter your current details to estimate how much extra tax you could pay for the MLS:
Disclaimers:
All calculations and information are presented in line with the Australian Taxation Office as at July 2023.
In a relationship and unsure if you lodge your tax separately or together? Visit the ATO guidelines to learn more about spousal relationships.
Find the health cover that suits you
Get started with a Hospital cover that suits your needs and could help you pay less tax.
Basic Essential Hospital Plus
Protect yourself with basic cover that includes some specific hospital services.
- Dental surgery
- Gastrointestinal endoscopy
- Gynaecology
- Hernia and appendix
- Joint reconstructions
Bronze Hospital Plus
Affordable cover that includes a wider range of hospital procedures.
- Dental surgery
- Gastrointestinal endoscopy
- Bone, joint and muscle
- Ear, nose and throat
- Kidney and bladder
- Lung and chest
Silver Hospital
Comprehensive cover, without paying for costly age-related services that you might not need.
- Dental surgery
- Gastrointestinal endoscopy
- Bone, joint and muscle
- Ear, nose and throat
- Kidney and bladder
- Lung and chest
- Back, neck and spine
- Heart and vascular system
Basic Essential Hospital Plus
Protect yourself with basic cover that includes some specific hospital services.
- Dental surgery
- Gastrointestinal endoscopy
- Gynaecology
- Hernia and appendix
- Joint reconstructions
Bronze Hospital Plus
Affordable cover that includes a wider range of hospital procedures.
- Dental surgery
- Gastrointestinal endoscopy
- Bone, joint and muscle
- Ear, nose and throat
- Kidney and bladder
- Lung and chest
Silver Hospital
Comprehensive cover, without paying for costly age-related services that you might not need.
- Dental surgery
- Gastrointestinal endoscopy
- Bone, joint and muscle
- Ear, nose and throat
- Kidney and bladder
- Lung and chest
- Back, neck and spine
- Heart and vascular system
What is the Medicare Levy Surcharge?
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're earning over $93,000 as a single or over $186,000 as a couple, family or single-parent family, you could be affected by the Medicare Levy Surcharge if you don't hold private Hospital cover for the full financial year. If this sounds like you, you could be up for $900 or more in extra tax if you don’t have the right level of Hospital cover!
| Annual taxable income | Medicare Levy Surcharge |
|---|---|
| $93,000 or less | 0.0% (no extra tax) |
| $93,001-$108,000 | 1.0% |
| $108,001-$144,000 | 1.25% |
| $144,001 or more | 1.5% |
Above table: Thresholds for individuals for the 2023/2024 financial year.
| Combined annual taxable income | Medicare Levy Surcharge |
|---|---|
| $186,000 or less | 0.0% (no extra tax) |
| $186,001-$216,000 | 1.0% |
| $216,001-$288,000 | 1.25% |
| $288,001 or more | 1.5% |
Above table: Thresholds for couples, families and single parent families (based on your combined incomes)
Source: Australian Tax Office. These thresholds apply for the 2023/2024 financial 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.
Frequently asked questions
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.