Capital Gains Calculator Medicare Levy Calculator Income Tax Calculator LITO and LMITO Estimator GST Calculator Superannuation Calculator

Medicare Levy Calculator

Calculate your 2% Medicare Levy and find out if the surcharge applies — or if you qualify for a reduction.

Select Income Year

Taxable Income

Estimated Medicare Levy

$ 0.00

FAQs

What is the Medicare Levy in Australia?

A 2% tax on your taxable income that funds Australia's public healthcare system (Medicare). It is charged on top of your income tax and applies to most Australian residents. For the 2025-26 year, a single person earning $70,000 pays $1,400 in Medicare Levy.

What is the Medicare Levy Surcharge and who pays it?

An additional levy of 1% to 1.5% for higher-income earners who do not have an appropriate level of private hospital insurance. For 2025-26, the surcharge applies to singles earning above $101,000 — up from $97,000 in 2024-25, as the threshold is indexed annually. It is in addition to the standard 2% levy. Buying private hospital cover removes the surcharge obligation.

What are the Medicare Levy low-income thresholds for 2025-26?

The thresholds are indexed annually and confirmed by the ATO each year. For 2024-25, singles earning below $27,222 paid no Medicare Levy, with a reduced (shade-in) levy applying between $27,222 and $34,027. Separate and higher thresholds apply to families, seniors, and pensioners. Check the ATO website each financial year for the current confirmed figures.

Can I get a Medicare Levy exemption?

Yes in limited circumstances — certain temporary visa holders, some foreign residents, and individuals with specific medical conditions or circumstances certified by the ATO. You apply for an exemption when you lodge your tax return. Most Australian residents do not qualify.

Is the Medicare Levy the same as Medicare itself?

No. Medicare is the government health insurance scheme that pays for GP visits, public hospital care, and some medical services. The Medicare Levy is the tax that partly funds it. Even if you use private health insurance and never claim Medicare, you still pay the levy unless exempt.

Does the Medicare Levy apply to superannuation earnings?

No. Earnings inside a superannuation fund are taxed at 15% (accumulation phase), not at your marginal income tax rate, and the Medicare Levy does not apply to super fund earnings.

Does salary sacrifice reduce my Medicare Levy?

Yes, because salary sacrifice reduces your taxable income, which is the base for the levy calculation. If you salary sacrifice $10,000 into super and earn $80,000, your taxable income becomes $70,000 and your Medicare Levy drops from $1,600 to $1,400.

Will private health insurance reduce my Medicare Levy?

It does not reduce the standard 2% levy. But if your income is above the surcharge threshold ($101,000 for singles in 2025-26), having private hospital cover removes the Medicare Levy Surcharge of 1%–1.5%. For higher earners, the surcharge often exceeds the cost of basic hospital cover.

Is the Medicare Levy changing in 2026?

The standard levy rate of 2% has not been legislated to change. The low-income thresholds are indexed annually. The surcharge threshold for singles increased to $101,000 for 2025-26 and will continue to be indexed. Always check the ATO website for each year's current confirmed figures.