About the Medicare Levy Surcharge Calculator
This Medicare levy surcharge (MLS) calculator tells you whether you will pay the surcharge for not holding an appropriate level of private patient hospital cover, which tier you fall into and how much it costs. The MLS is 1%, 1.25% or 1.5% depending on your income for MLS purposes, and it is charged on top of the ordinary 2% Medicare levy for every day of the year you (and your dependants) did not have hospital cover.
For 2026-27 no surcharge applies to singles with MLS income of $105,000 or less, or families with combined income of $210,000 or less (plus $1,500 for each dependent child after the first). For 2025-26 the thresholds were $101,000 and $202,000. Enter your taxable income, reportable fringe benefits and other MLS income items, and for a family your spouse’s income for MLS purposes; the calculator finds your tier from the right income test and calculates the surcharge on your own taxable income and fringe benefits.
Add the yearly price of a basic hospital policy (after any private health insurance rebate) to see whether buying cover is cheaper than paying the MLS. Single parents and couples use the family thresholds. The calculator does not cover the separate Lifetime Health Cover loading or special exemptions such as foreign residents or Medicare levy exemption holders.
With the default inputs, the medicare levy surcharge you pay is $1,100.00. Change any value above to recalculate instantly.
How to use the medicare levy surcharge calculator
- 1Choose the income year and whether the single or family thresholds apply.
- 2Enter your taxable income, reportable fringe benefits and other MLS income items.
- 3For a family, add your spouse’s income for MLS purposes and the number of dependent children.
- 4Enter the days you were without hospital cover and the price of a basic policy.
- 5Compare the surcharge with the cost of cover to decide which is cheaper.
Formula and method
Your tier is set by your income for MLS purposes: taxable income, reportable fringe benefits, total net investment losses and reportable super contributions, combined with your spouse’s for families. Singles in 2026-27 pay nothing up to $105,000, 1% to $123,000, 1.25% to $164,000 and 1.5% above. Family thresholds are double ($210,000, $246,000 and $328,000) and rise by $1,500 for each dependent child after the first.
The surcharge itself is charged only on your taxable income, reportable fringe benefits and any amount on which family trust distribution tax was paid — not on the investment-loss or super items used for the test — and only for the days you lacked appropriate private hospital cover. The comparison subtracts your quoted premium from the MLS you would avoid.
- rate
- 0%, 1%, 1.25% or 1.5% depending on the tier
- days
- Days in the year without appropriate hospital cover
Worked examples
Single on $110,000 without cover
MLS income of $110,000 is in Tier 1 for 2026-27 ($105,001–$123,000), so the surcharge is 1% of $110,000 = $1,100. A $1,500 policy would cost $400 more than the surcharge.
ATO example: Tom with fringe benefits
Tom’s taxable income of $90,000 plus $27,000 of reportable fringe benefits gives MLS income of $117,000, Tier 1. His surcharge is 1% × $117,000 = $1,170.
Family with two children
The family threshold is $210,000 plus $1,500 for the second child = $211,500. Combined income of $240,000 is in Tier 1, so you pay 1% of your own $140,000: $1,400.
Half a year uncovered in 2025-26
Income of $170,000 is in Tier 3 for 2025-26 (over $158,000), a 1.5% rate. For 182 uncovered days the surcharge is 1.5% × $170,000 × 182 ÷ 365 = $1,271.51.
Frequently asked questions
What are the Medicare levy surcharge thresholds for 2026-27?+
Singles: base tier up to $105,000 (no MLS), Tier 1 $105,001–$123,000 (1%), Tier 2 $123,001–$164,000 (1.25%), Tier 3 $164,001 or more (1.5%). Families: $210,000, $246,000 and $328,000, plus $1,500 per dependent child after the first.
What income is used for the Medicare levy surcharge?+
Income for MLS purposes is taxable income plus reportable fringe benefits, total net investment losses and reportable super contributions (salary sacrifice and deductible personal contributions), combined with your spouse’s income if you have one.
What hospital cover avoids the surcharge?+
An appropriate level of private patient hospital cover from a registered health insurer for you, your spouse and all your dependants, within the legislated excess limits. Extras-only (general treatment) cover does not count, so check with your insurer that your policy qualifies.
Do I pay the MLS if my own income is low but my family income is high?+
Not if you had a spouse all year and your own income for MLS purposes was at or below the low-income cut-off ($27,222 for 2025-26). Above that, family income decides the tier and each uncovered spouse pays on their own income.
Do single parents use the family threshold?+
Yes. If you have a dependent child you are treated as a family for MLS purposes and use the family thresholds, even without a spouse.
Is the surcharge charged for part of a year?+
Yes. The surcharge applies only to the days you and all your dependants were not covered by appropriate hospital cover, so buying cover partway through the year reduces it proportionally.
Is the Medicare levy surcharge the same as the Medicare levy?+
No. The 2% Medicare levy is paid by most taxpayers. The surcharge of 1% to 1.5% is an additional charge for higher earners who do not hold appropriate private hospital cover.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.