Calculate∑ What your result means
The Medicare Levy Surcharge is an extra charge — on top of the standard 2% Medicare levy — for higher-income earners who don't hold private hospital cover, designed to encourage take-up of private insurance.
Australia Medicare Levy Surcharge Calculator
Check whether you may owe the Medicare Levy Surcharge based on income, family status and private hospital cover.
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Verified for 2026-27Methodology 2026-27.1 · reviewed 2026-08-08 · review by 2027-06-01
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Change annual taxable income for mls purposes to see how estimated annual mls responds.
Understand your result
Clear context for the values above.
Estimated annual MLS
Estimated annual MLS is included so you can interpret this estimate and make a better-informed comparison.
Applicable MLS rate
Applicable MLS rate is included so you can interpret this estimate and make a better-informed comparison.
Base threshold that applies to you
Base threshold that applies to you is included so you can interpret this estimate and make a better-informed comparison.
Annual taxable income for MLS purposes
Annual taxable income for MLS purposes is included so you can interpret this estimate and make a better-informed comparison.
How to use this calculator
- 1Enter your current annual taxable income for mls purposes, family status, dependent children (after the first), has appropriate private hospital cover.
- 2Review the headline estimated annual mls and the supporting figures beside it.
- 3Change one input at a time to see which assumption has the biggest effect.
- 4Confirm current Australian rates and thresholds with an official source before acting.
Explore this calculator
What your result means →The headline estimated annual mls is based on the inputs currently shown above.Key terms explained →Review the key terms and figures used to calculate this result.How to use this calculator →Enter your figures, review the live result, compare scenarios, then save or print your estimate.The calculation formula →The calculation follows the standard formula for this calculator. Results update whenever an input changes.Worked example →Using the current values produces $1,100.Assumptions and limitations →Review the assumptions used to produce this estimate before relying on it.Costs or factors not included →Review any costs, fees or rules not automatically included before making a decision.Frequently asked questions →How accurate is this estimate? What should I check before relying on it? Can I save or share the result?
▦ How this calculator works
If you hold private hospital cover, the surcharge is $0. Otherwise, the calculator applies a tiered rate — 1.0%, 1.25% or 1.5% — based on where your income falls against the single or family thresholds for the 2026–27 income year. Family thresholds start at double the single thresholds and increase by $1,500 for each dependent child after the first.
◇ Assumptions and what's not included
This uses the standard single and family threshold tiers; it doesn't separately model the seniors and pensioners tax offset (which lifts the thresholds further for eligible people), and 'income for MLS purposes' can include reportable fringe benefits and super contributions beyond salary alone.
▤ What to do next
If your income is near a threshold, compare the surcharge cost against a basic private hospital policy, which is often cheaper than paying the surcharge every year.
Australia-specific contextFigures use AUD and current published rates and thresholds.
Reviewed for clarityUpdated 3 August 2026.
ImportantFor planning and educational use — not tax, legal or financial advice.
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Frequently asked questions
Do family thresholds differ from single thresholds?+
Yes — for 2026–27 the family base threshold is $210,000 (versus $105,000 for singles), and each tier is roughly double the single tier, increasing by a further $1,500 for every dependent child after the first.
Does extras cover (no hospital cover) avoid the surcharge?+
No — you need an appropriate private hospital cover policy specifically; extras-only cover (dental, optical, etc.) doesn't exempt you from the MLS.
Is the surcharge the same as the Medicare levy?+
No, the standard 2% Medicare levy applies to almost all taxpayers regardless of cover; the MLS is an additional charge only for higher earners without hospital cover.
What income is used for the MLS test?+
It's based on a specific 'income for MLS purposes' definition that can include reportable fringe benefits and superannuation contributions, not just salary.
Official references
Rules and thresholds used by this calculator are labelled for 2026–27 or formula-labelled period. Review the primary guidance before making a filing, borrowing, benefit or investment decision.
Last source review: 3 August 2026. Calculator results are estimates and may exclude circumstances described in the methodology.