Aussie Calculators

2026–27 thresholds On top of the 2% levy

Medicare Levy Surcharge Calculator (2026–27)

The Medicare levy surcharge (MLS) is an extra charge — it sits on top of the 2% Medicare levy. It only applies if you (and your spouse and dependants) don’t hold private hospital cover and your income is above the base tier.

1 Enter your income2 See the surcharge

$
$

Step 2 · your result

Medicare levy surcharge

$0

for the year

Income for MLS purposes
$0
Your tier
—
MLS rate
—
Base tier starts at
$0

Rates from Australian Taxation Office, checked 11 October 2026. General estimate — not tax advice.

MLS thresholds and rates 2026–27

TierSingle: income for MLS purposesMLS rate
Base tier$105,000 or less0%
Tier 1$105,001 – $123,0001%
Tier 2$123,001 – $164,0001.25%
Tier 3$164,001 or more1.5%

Family thresholds are double the single thresholds: $210,000 or less is the base tier, then $210,001–$246,000 (1%), $246,001–$328,000 (1.25%), and $328,001 or more (1.5%). Add $1,500 for each dependent child after the first.

The three things people get wrong

  1. It is not 2%. The Medicare levy is 2%. The surcharge is a separate extra 1%, 1.25% or 1.5% — you can pay both.
  2. The tier test uses a different income figure. Not taxable income alone — income for MLS purposes, which is why reportable fringe benefits can push you into a higher tier.
  3. Extras cover does not exempt you. It must be private patient hospital cover.

Frequently asked questions

What is the Medicare levy surcharge?

An extra charge on top of the 2% Medicare levy. It applies for any period in the income year when you (and your spouse and dependants) do not hold an appropriate level of private patient hospital cover and your income for MLS purposes is above the base tier threshold.

What are the MLS thresholds for 2026–27?

Single: $105,000 or less is the base tier (no MLS); then 1%, 1.25% and 1.5% as income rises. Family: $210,000 or less is the base tier. The family threshold rises by $1,500 for each MLS dependent child after the first.

What income is the surcharge calculated on?

Your income for MLS purposes — not just your taxable income. The ATO’s worked example adds taxable income and total reportable fringe benefits. That is why this calculator asks for both. Mortgage the difference and you can land in the wrong tier.

Does the surcharge apply if I have private hospital cover?

If you hold an appropriate level of private patient hospital cover for the whole year, MLS generally does not apply. Extras cover on its own is not sufficient — it must be hospital cover.

How is the surcharge calculated?

The rate for your tier is applied to your income for MLS purposes (taxable income plus reportable fringe benefits and certain other amounts). It is charged in addition to income tax and the 2% Medicare levy.

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