Uses the ATO's 2025–26 and 2026–27 MLS thresholds, checked 8 November 2026. Runs in your browser — nothing you type is sent anywhere. Sources: ATO MLS thresholds and rates, ATO hospital cover rules.
Medicare levy surcharge thresholds 2026–27
| Tier | Singles | Families* | MLS rate |
|---|---|---|---|
| Base | $105,000 or less | $210,000 or less | 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 | 1.5% |
*Family thresholds go up by $1,500 for each dependent child after the first.
See 2025–26 thresholds and how they're worked out
How the calculator works
- It adds up your income for MLS purposes: taxable income, fringe benefits, reportable super and net investment losses, plus your partner's if you have one.
- It finds your tier using the single or family threshold for the year.
- It charges the tier's rate on your taxable income and fringe benefits, for each day you didn't have hospital cover.
The monthly figure is the most a hospital policy could cost before it's dearer than paying the surcharge.
Medicare levy surcharge examples, 2026–27
Taxable income only, no private hospital cover for the whole year. 'Your MLS' is your own share of the surcharge.
| Situation | Surcharge rate | Your MLS |
|---|---|---|
| Single, $95,000 | None | $0 |
| Single, $110,000 | 1% | $1,100 |
| Single, $135,000 | 1.25% | $1,688 |
| Single, $175,000 | 1.5% | $2,625 |
| Couple, $120,000 + $100,000 | 1% | $1,200 |
Common questions
What is the Medicare levy surcharge?
An extra 1% to 1.5% tax for Australians who earn above a set income and don't have private hospital cover. For 2026–27 it starts above $105,000 for singles and $210,000 for families.
Is private health insurance cheaper than paying the MLS?
Often, once you're above the threshold. Compare the yearly surcharge with the yearly cost of a basic hospital policy after the private health insurance rebate. This calculator shows the monthly break-even figure.
Does extras cover stop the surcharge?
No. Only hospital cover counts, and its excess must be $750 or less for singles or $1,500 or less for couples and families.
What income does the MLS use?
Your income for MLS purposes: taxable income plus reportable fringe benefits, reportable super contributions and net investment losses (and your partner's, if you have one). The surcharge itself is charged on your taxable income and fringe benefits.