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SavingsMate

Medicare Levy Calculator

Calculate your Medicare levy and surcharge for 2025-26. See if you qualify for a reduction, and whether private health insurance would save you money.

Last verified: 1 July 2025

How much is the Medicare levy in 2025-26?

The Medicare levy is 2% of taxable income for most Australian residents. Singles earning $27,222 or less are exempt; the levy phases in between $27,222 and $34,027. Families are exempt below $45,907 (plus $4,216 per dependent child). High earners without private hospital cover also pay the Medicare Levy Surcharge of 1-1.5%. Source: Australian Taxation Office.

MLS singles thresholds 2025-26. $101,001-$118,000 = 1.0%. $118,001-$158,000 = 1.25%. Above $158,001 = 1.5%. Family thresholds are double (plus $1,500 per dependent child after the first). Example: a single earning $140,000 with no private hospital cover pays $2,800 Medicare levy + $1,750 MLS = $4,550. A basic hospital policy at ~$1,200/year would save ~$550.
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Your total taxable income for the 2025-26 financial year.

Filing status

Children and other dependents. Affects both levy reduction thresholds and surcharge thresholds.

Do you have private hospital cover?

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.