Medicare Levy Calculator.
Calculate your Medicare levy and Medicare Levy Surcharge. See if you qualify for a reduction or exemption, and whether you need private health insurance.
Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.
All Australian residents pay the Medicare levy — a 2% tax on taxable income that funds the public healthcare system. But it doesn't stop there. High-income earners without private hospital cover also pay the Medicare Levy Surcharge (MLS) — an additional 1% to 1.5%. Understanding both is essential: sometimes private health insurance (at ~$1,200-$2,000/year) costs LESS than the MLS (which can be $2,000+). This calculator shows you exactly what you owe and whether getting health cover makes financial sense.
Real-world scenarios
Single Earner Without Health Cover
Jake earns $110,000 and doesn't have private hospital cover.
Medicare levy: $2,200 (2%). MLS at 1.25%: $1,375. Total Medicare-related tax: $3,575. Basic hospital cover would cost ~$1,200-$1,800/year. Jake saves $375-$975 by getting health cover PLUS gets the benefit of actual hospital insurance.
Low-Income Reduction
Maria is a student earning $27,000 from part-time work.
At $27,000, Maria is in the Medicare levy reduction zone ($24,276-$30,345). Her reduced levy is approximately $272 instead of $540. Below $24,276, she'd pay no Medicare levy at all.