Medicare · Reference
Medicare levy surcharge thresholds 2026-27 Australia
Quick answer: for 2026-27, MLS starts once a single adult without appropriate hospital cover moves above 105,001.00 income. For families, the base threshold is 210,000.00, with an extra 1,500.00 added for each dependant child after the first.
Looking for 2025-26? See the 2025-26 edition.
Single thresholds
| Income | MLS rate | Decision lens |
|---|---|---|
| 0.00 to 105,000.00 | 0.00% | No surcharge. |
| 105,001.00 to 123,000.00 | 1.00% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
| 123,001.00 to 164,000.00 | 1.25% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
| 164,001.00+ | 1.50% | Private health starts to become a tax-cost comparison rather than a pure insurance decision. |
Family thresholds
| Dependants | Tier 1 starts | Tier 2 starts | Tier 3 starts |
|---|---|---|---|
| Couple, no children | $210,000.00 | $246,000.00 | $328,000.00 |
| 1 child | $210,000.00 | $246,000.00 | $328,000.00 |
| 2 children | $211,500.00 | $247,500.00 | $329,500.00 |
| 3 children | $213,000.00 | $249,000.00 | $331,000.00 |
What usually gets missed
- The surcharge decision is tied to hospital cover, not extras-only cover.
- Family MLS is based on combined income even though the charge is levied separately to each adult.
- A small pay rise near the threshold can change the tax cost of staying uninsured.
Run the MLS calculator
Model resident status, spouse income and dependants instead of guessing from the threshold table.
Compare cover vs MLS
Use the decision hub if you need the tax and premium trade-off rather than just the thresholds.
Family threshold explainer
Open the dedicated family guide if your combined household income is what matters.
Tax Accuracy & Sources
This page summarizes 2026-27 Medicare levy surcharge thresholds for planning and comparison. It assumes standard resident treatment.
Frequently asked questions
Do I have to pay the Medicare levy surcharge in 2026-27?
Only if your income for MLS purposes exceeds 105,000.00 (single) or 210,000.00 (family) and you don't hold an appropriate private hospital cover policy for the whole year. If your income is below the threshold, or you have hospital cover, the surcharge does not apply.
What are the MLS rate tiers for 2026-27?
Singles pay 1.00% between 105,001.00 and 123,000.00, 1.25% up to 164,000.00, and 1.50% above that. Family thresholds use the same three rate tiers, applied to combined family income.
What is the family threshold for the Medicare levy surcharge in 2026-27?
The 2026-27 family threshold starts at 210,000.00 combined income, rising to 246,000.00 and 328,000.00 for the higher rate tiers. Each dependent child after the first adds 1,500.00 to every tier of the family threshold.
Does extras-only health cover avoid the Medicare levy surcharge?
No. Only an appropriate private hospital cover policy counts toward avoiding the MLS — extras-only cover (dental, optical, physio) has no effect on the surcharge, no matter how much you pay for it.
Can a small pay rise push me into a higher MLS tier?
Yes. Because the MLS thresholds are fixed dollar cliffs rather than a smooth phase-in, moving from just under to just over a tier boundary — for example 105,001.00 for singles — can add a full percentage point of surcharge on your entire income for MLS purposes, not just the amount above the threshold.