Medicare Levy & MLS Calculator (Australia)

Work out how much you'll pay in Medicare Levy and whether you're liable for the Medicare Levy Surcharge (MLS). The Medicare Levy is a flat 2% tax that funds public healthcare, while the MLS is an additional charge for higher earners without private hospital cover.

If your income exceeds $101,000 (singles) or $202,000 (families), you may be paying more in MLS than basic hospital cover would cost. This calculator helps you see the numbers and make an informed decision.

This calculator supports both singles and families/couples. For families, the MLS is based on combined income but calculated separately for each adult.

Understanding Medicare Levy vs MLS

The Medicare Levy and Medicare Levy Surcharge are often confused, but they're quite different:

• Medicare Levy (2%): A tax paid by most Australian residents to fund the public healthcare system. It applies regardless of whether you use public or private healthcare.
• Medicare Levy Surcharge (1-1.5%): An additional tax that only applies to higher-income earners who do not have eligible private hospital insurance. It's designed to encourage higher earners to take out private cover and reduce pressure on the public system.

The key difference is that you can avoid the MLS by having private hospital cover, but the Medicare Levy applies to almost everyone (with some low-income exemptions).

What does this calculator include?

• Medicare Levy calculation at 2% of taxable income
• Medicare Levy Surcharge calculation based on income thresholds
• Visual display of where your income sits relative to MLS thresholds
• Estimate of potential savings if you take out private hospital cover
• Single person thresholds for 2025-26 ($101k, $118k, $158k)
• Family thresholds (base $202k + $1,500 per dependent child after the first)
• Separate MLS calculation for each adult in a family

What does this calculator not include?

• Partial-year insurance coverage
• Scenarios where one spouse has cover and the other doesn't
• Dependent children income
• Medicare Levy reduction for low-income earners (under $27,222 may pay less) — see our Medicare Levy Reduction Calculator
• Medicare Levy exemptions (certain visa holders, foreign residents)
• Reportable fringe benefits and reportable super contributions in MLS income
• Private health insurance rebate calculations

This is a simplified estimate. Your actual levy may differ based on your individual circumstances.

Looking for the low-income Medicare levy reduction? If your income is below $34,027 (single), you may pay a reduced levy or none at all. Use our Medicare Levy Reduction Calculator to check.