Your MLS Rate
1.00%
Tier 1
Annual Surcharge
$1,200.00
per year
Monthly Surcharge
$100.00
per month
Understanding the Medicare Levy Surcharge
Medicare Levy Surcharge (MLS)
The MLS is an additional tax charged to Australian taxpayers who earn above $101,000 (singles) and do not have an appropriate level of private hospital cover. It is separate from the standard 2% Medicare levy. The MLS ranges from 1% to 1.5% of your taxable income.
Private Health Insurance
If you take out private hospital cover with an excess of $750 or less (singles) or $1,500 or less (families), you can avoid the MLS entirely. Often, a basic hospital cover policy costs less than the surcharge itself.
Family Thresholds
For families (couples and single parents), the MLS thresholds are double the singles thresholds. The thresholds increase by $1,500 for each dependent child after the first.
Key Thresholds (Singles)
Base Tier
Income up to $101,000 -- no MLS applies.
Tier 1 (1%)
$101,001 to $140,000 taxable income.
Tier 2 (1.25%)
$140,001 to $190,000 taxable income.
Tier 3 (1.5%)
$190,001+ taxable income.
ATO-Aligned: This calculator uses official ATO MLS rates and thresholds for 2025-26. MLS income includes taxable income, reportable fringe benefits and total net investment losses.
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
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