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Medicare Levy Calculator

2025/26
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Medicare Levy Summary

Medicare Levy

$1,700.00

per year

MLS Surcharge

$0.00

per year

Total

$1,700.00

2.00% effective

Levy Breakdown
Taxable Income$85,000.00
Medicare Levy (2%)$1,700.00
Total Medicare Cost$1,700.00
Pay Period Cost

Monthly

$141.67

Fortnightly

$65.38

Weekly

$32.69

More Information
Understanding Medicare Levy

What is the Medicare Levy (2%)?

The Medicare Levy is 2% of your taxable income, funding Australia's public healthcare system (Medicare). Low-income singles earning below $27,222 are fully exempt. Between $27,222 and $34,027, the levy phases in at 10% of income above the threshold, rather than the full 2%.

What is the Medicare Levy Surcharge (MLS)?

The MLS is an additional 1-1.5% charged to higher-income earners who do not have appropriate private hospital cover. It applies to singles earning over $101,000 or families over $202,000. Getting private health insurance eliminates the surcharge and may cost less than the MLS itself.

How do family thresholds work?

Families have a higher low-income threshold of $45,907, plus $4,218 for each dependent child. This means families with children below the combined threshold pay no Medicare Levy.

ATO-Aligned: Thresholds and rates are for the 2025-26 financial year. Exemptions exist for certain visa holders, defence force members, and pensioners.

Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms