Medicare Levy Surcharge Calculator 2026-27
Work out whether the Medicare levy surcharge (MLS) applies and which private health insurance rebate tier you sit in. Enter taxable income plus the extra items the ATO uses for MLS purposes. Family cutoffs start at $210,000 and rise by $1,500 for each dependent child after the first.
Your MLS estimate
How the surcharge is worked out
Two numbers matter. The first is income for MLS purposes, which decides the tier. The second is the surcharge base — taxable income plus reportable fringe benefits and any family-trust distribution tax. Losses and reportable super can push you into a higher tier without being multiplied by the rate.
Use theincome tax calculator if you need a taxable income starting point, or thetake-home pay calculator to see the ordinary Medicare levy beside net pay. Employer super rules sit on thesuper guarantee page.
2026-27 MLS thresholds
| Tier | Singles | Families | Rate |
|---|---|---|---|
| Base tier | $0 – $105,000 | $0 – $210,000 | 0% |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.50% |
Private health insurance rebate (1 July 2026 to 31 March 2027)
| Oldest person on the policy | Base | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.118% | 16.079% | 8.038% | 0% |
| 65 to 69 | 28.139% | 20.098% | 12.058% | 0% |
| 70 or older | 32.158% | 24.118% | 16.079% | 0% |
2025-26 published thresholds
| Tier | Singles | Families | Rate |
|---|---|---|---|
| Base tier | $0 – $101,000 | $0 – $202,000 | 0% |
| Tier 1 | $101,001 – $118,000 | $202,001 – $236,000 | 1% |
| Tier 2 | $118,001 – $158,000 | $236,001 – $316,000 | 1.25% |
| Tier 3 | $158,001 or more | $316,001 or more | 1.50% |
Frequently Asked Questions
What is the Medicare levy surcharge?
The Medicare levy surcharge is an extra amount collected through your tax return if your income for MLS purposes sits above the base threshold and you (and, where relevant, your spouse and dependants) do not hold an appropriate level of private patient hospital cover. It is separate from the standard 2% Medicare levy.
How is income for MLS purposes different from taxable income?
The ATO adds several items to taxable income (after leaving out an assessable first home super saver release): reportable fringe benefits, reportable super contributions, net investment losses, and any family-trust distribution tax amount. If you have a spouse, the combined figure is used to choose a tier. The surcharge rate is then applied only to taxable income, reportable fringe benefits, and family-trust distribution tax — not to losses or reportable super.
Do family thresholds apply to single parents?
Yes. Couples and anyone with an MLS dependent child are tested against the family table. The family cutoffs rise by $1,500 for each dependent child after the first. A single adult with no dependants uses the singles table.
What counts as appropriate hospital cover?
It must be private patient hospital cover from an Australian registered insurer. Extras-only policies and overseas visitor products do not qualify. The ATO also sets a maximum excess: $750 or less for singles, and $1,500 or less for couples or families. This calculator treats cover as held or not held for the full year. Part-year gaps are assessed day by day on the tax return.
How does the private health insurance rebate relate to MLS?
The rebate uses the same income tiers as the surcharge. Your rebate percentage also depends on the age of the oldest person on the policy. Tier 3 receives no rebate. Percentages change on 1 April each year. This page shows the published 1 July 2026 to 31 March 2027 rates and does not estimate a premium.
Should I take out hospital cover to avoid the surcharge?
This site does not recommend insurance products. A practical check is to compare the surcharge shown here with quotes for registered hospital cover after the government rebate. Premiums, waiting periods and excesses differ by insurer and are not published by the ATO.
Disclaimer
This page is general information only. It is not tax, financial or insurance advice and it does not recommend any health fund or policy. In line with ASIC guidance, we do not give product advice. Confirm your position on your tax return and on the ATO MLS and rebate pages.