Medicare Levy & Surcharge Calculator Australia
Pop in your income and find out what the 2% Medicare levy costs you, whether the Medicare Levy Surcharge applies, and how much taking out private hospital cover could save you each year.
- Medicare levy (2%)$0
- Medicare Levy Surcharge$0
- Total Medicare cost$0
Enter your taxable income to see your estimate.
Not sure whether your cover counts, or how the levy reduction works on a lower income? We'll sort it out at tax time.
Talk to an accountant →General information only, current for the 2025-26 financial year. The levy is shown as a flat 2% and ignores the low-income reduction and exemptions; the surcharge uses income for MLS purposes (close to, but not the same as, taxable income). This is an estimate, not personal tax advice. For your exact position, talk to us.
A Few Things This Calculator Assumes
What is the difference between the levy and the surcharge?
The Medicare levy is a flat 2% of your taxable income that almost everyone pays to help fund Medicare. The Medicare Levy Surcharge is a separate, extra charge of 1% to 1.5% that only applies to higher earners who do not hold an eligible private hospital policy. You can pay one, both, or neither.
What are the surcharge thresholds for 2025-26?
For singles the surcharge starts above $101,000: 1% from $101,001 to $118,000, 1.25% from $118,001 to $158,000, and 1.5% above $158,000. Family and couple thresholds are double these figures (starting above $202,000), and lift by $1,500 for each dependent child after the first.
Does the 2% levy apply to everyone?
Not quite. If your taxable income is below the low-income threshold (around $27,222 for singles in 2025-26) you pay no levy, and there is a sliding reduction just above that point. Some people, such as certain low earners and foreign residents, are also exempt. This calculator applies a flat 2% above the threshold, so for a lower income treat the levy figure as a maximum.
Will private hospital cover always save me money?
Not always. If the annual premium for basic hospital cover is more than the surcharge you would otherwise pay, the surcharge alone is the cheaper option, though many people still value the cover itself. Enter a premium above to see the head-to-head. The cover must be an eligible hospital policy held for the full year to remove the surcharge.
Make Sure You're Not Overpaying Medicare
The surcharge catches a lot of people who could have skipped it with the right cover, and plenty of lower earners pay levy they did not owe. We'll check it as part of your return and lodge it properly.
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