Medicare levy surcharge calculator

What the result means

The Medicare levy surcharge is extra tax for higher-income people who do not hold an appropriate level of private patient hospital cover. It is separate from the standard 2% Medicare levy.

How it is calculated

If appropriate hospital cover: $0. Otherwise MLS income × tier rate

• MLS income: Income for surcharge purposes, including reportable fringe benefits.

The ATO Tom example is $90,000 taxable income plus $27,000 reportable fringe benefits = $117,000 × 1% = $1,170.

Worked example

ATO Tom example, 2026–27

Single adult, no hospital cover, $90,000 taxable income and $27,000 reportable fringe benefits.

MLS income

$117,000

Tier

Tier 1 (1%)

Surcharge

$1,170

Appropriate private hospital cover would reduce this to nil.

2026–27 tiers

Singles: nil to $105,000, 1% to $123,000, 1.25% to $164,000, then 1.5%. Families: the same rates from $210,000 / $246,000 / $328,000. Family thresholds increase by $1,500 for each dependent child after the first.

Questions