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Medicare Levy Calculator

Calculate your Medicare levy (2%) and check if the Medicare levy surcharge applies based on your income and private health cover.

Data stays on your deviceATO sourced data

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

Who is exempt from the Medicare levy?
You're fully exempt if you earn below $26,000. Between $26,000 and $32,500 a reduced rate applies. You may also be exempt if you're a foreign resident for the entire year, or covered by a reciprocal health care agreement country.
What is the Medicare Levy Surcharge?
The MLS is an additional 1-1.5% tax on top of the standard 2% levy. It applies to singles earning over $93,000 and families over $186,000 who don't have private hospital cover. Getting basic hospital cover can be cheaper than paying the surcharge.

What is Medicare Levy?

The Medicare levy is a 2% tax on your taxable income that helps fund Australia's public healthcare system, Medicare. Most Australian taxpayers pay it, though low-income earners may be exempt or pay a reduced rate.

How this calculator works

The calculator applies the 2% Medicare levy to your taxable income. If you earn below $26,000, you're fully exempt. Between $26,000 and $32,500, a reduced rate applies (10% of the excess over $26,000, or shade-in). It also calculates the Medicare Levy Surcharge (MLS) — an additional 1-1.5% charged to higher-income earners ($93,000+ single, $186,000+ family) who don't hold private hospital cover. The surcharge comparison helps you decide whether private health insurance is cheaper than paying the MLS.

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.