Medicare levy surcharge 2026-27

For 2026-27, singles earning over $105,000 and families over $210,000 pay a Medicare levy surcharge of 1%, 1.25% or 1.5% if they do not have private hospital cover. The calculator shows your tier, the surcharge, and how it compares with the cost of cover.

Work out your Medicare levy surcharge

Tax year

Your taxable income

Reportable fringe benefits

Days without private hospital cover

I have a spouse or dependent children (family thresholds)

Surcharge

$1,150

Your tier

Tier 1

1% rate

Surcharge-free up to

$105,000

Surcharge or hospital cover?

Yearly cost of the cheapest hospital cover you would take

Medicare levy surcharge thresholds 2026-27

Tier	Singles	Families	Rate
Base tier	$105,000 or less	$210,000 or less	0%
Tier 1	$105,001 to $123,000	$210,001 to $246,000	1%
Tier 2	$123,001 to $164,000	$246,001 to $328,000	1.25%
Tier 3	$164,001 and over	$328,001 and over	1.5%

The family threshold rises by $1,500 for each dependent child after the first. Income for MLS purposes is your taxable income plus reportable fringe benefits, and some other amounts such as net investment losses and reportable super contributions.

Surcharge or hospital cover

Above the threshold, the choice is money: the surcharge on your income, or the premium for a hospital policy. Put the yearly price of the cheapest hospital cover you would actually take into the calculator to compare the two. If you first take hospital cover after the 1 July following your 31st birthday, you may also pay a Lifetime Health Cover loading on the premium.

The surcharge and the Medicare levy

The surcharge is added on top of the 2% Medicare levy, which most taxpayers pay whether or not they have cover. To see both in your result, use the tax return calculator.

Other income tests sit at both ends of the scale. Below $66,667, the low income tax offset cuts your tax. Once income plus super contributions passes $250,000, Division 293 tax adds 15% on those contributions.

Sources: ATO: Medicare levy surcharge income, thresholds and rates. Maintained by James Crawford; last updated 21 October 2026. How our calculators work.

Frequently Asked Questions

What is the Medicare levy surcharge?

An extra 1% to 1.5% of your income for MLS purposes, charged if you earn above the threshold and do not have an appropriate level of private hospital cover. It is on top of the 2% Medicare levy.

What is the 2026-27 Medicare levy surcharge threshold?

$105,000 for singles and $210,000 for families. Above that, the surcharge is 1%, 1.25% or 1.5% depending on your tier.

Does extras cover avoid the surcharge?

No. Only hospital cover counts. A policy with extras only does not stop the surcharge.

Do I pay the surcharge for the whole year?

No. It is charged only for the days you, and any dependants, did not have appropriate private hospital cover.