Medicare Levy Calculator
Work out your 2% Medicare levy for 2025-26 — including the low-income shade-in, family and seniors thresholds, and the Medicare levy surcharge
Your Details (2025–26)
Assessable income minus deductions, for the full income year.
2025–26 thresholds — Budget 2026 lifted the low-income thresholds 2.9%, retroactive to 1 July 2025.
Results
Medicare Levy
2% of $90,000.00 taxable income
Effective Levy Rate
Levy as a share of taxable income
Medicare Levy Surcharge
Income below the MLS base tier
Total Medicare Levy + Surcharge
On top of income tax — withheld through PAYG for most employees
How this was worked out
- • Full levy: 2% × $90,000.00 = $1,800.00
- • Your single low-income threshold: $28,011 (full 2% from $35,014)
Estimate only. The ATO works out the exact family reduction when you lodge (this tool apportions it by your share of family income). The surcharge actually uses income for MLS purposes — taxable income plus reportable fringe benefits, reportable super contributions and net investment losses — which can push you into a higher tier. Medicare levy exemptions (foreign residents, some visa holders, ADF members, blind pensioners) are not modelled.
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Frequently asked questions
How much is the Medicare levy?
The Medicare levy is 2% of your taxable income, paid on top of income tax. Someone with $90,000 of taxable income pays $1,800. For most employees it is withheld through PAYG during the year and reconciled when they lodge their tax return.
Who doesn’t pay the Medicare levy in 2025-26?
Singles with taxable income at or below $28,011 pay no levy ($44,268 if entitled to the seniors and pensioners tax offset). Families pay none if combined income is at or below $47,238 plus $4,338 per dependent child ($61,623 base for SAPTO couples). These thresholds were lifted 2.9% in the 2026 Budget, retroactive to 1 July 2025. Foreign residents and some visa holders without Medicare entitlement are exempt entirely.
How does the shade-in (reduced levy) work?
If your income is above the lower threshold but below roughly 1.25 times it, you pay 10 cents per dollar of income over the threshold instead of the full 2%. For example, a single person on $30,000 pays 10% of ($30,000 − $28,011) = $198.90 rather than $600. The ATO works the reduction out automatically when you lodge.
What is the Medicare levy surcharge and how do I avoid it?
The surcharge is an extra 1% to 1.5% of income charged on top of the 2% levy if you earn above $101,000 (singles) or $202,000 (families) for 2025-26 and don’t hold an appropriate level of private patient hospital cover. Holding hospital cover for the full income year avoids it completely. Note the surcharge uses a broader income definition that adds reportable fringe benefits, reportable super contributions and net investment losses.
Is the Medicare levy the same as the Medicare levy surcharge?
No. The levy is the base 2% that almost everyone above the low-income thresholds pays regardless of insurance. The surcharge is an additional charge that only applies to higher earners without private hospital cover — it was designed to encourage people to take out private insurance.