Calculate your Medicare levy and Medicare Levy Surcharge. See if you qualify for a reduction or exemption, and whether you need private health insurance.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Medicare levy
$1,700
2%, reduced near the low-income threshold
MLS
Not applicable
0% rate
Total levy
$1,700
Basic hospital cover
$1,066
median a year after your 24.1% rebate
MLS applies only if you don't hold compliant private hospital cover.
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%. This calculator works out both, and compares the surcharge with the median Basic hospital premium for your cover type, after your rebate, from the Private Health Insurance Ombudsman's policy data.
Half of the Australians who paid tax in 2023–24 had a taxable income under about $71,000, and the top 10% earned more than about $157,000, from the ATO's statistics.
The typical hospital policy anyone can buy costs $145.50 a month for a single at Bronze, $224.68 at Silver and $386.13 at Gold, before the government rebate, in October 2026 data.
Jake earns $150,000 and doesn't have private hospital cover.
Medicare levy: $3,000 (2%). MLS at 1.25% (his income is in the $123,001-$164,000 band): $1,875. Total Medicare-related tax: $4,875. The median Basic hospital policy for a single was $1,405 a year in October 2026, $1,292 after his 8% rebate, so the surcharge costs him about $583 more than that cover would.
Maria is a student earning $31,000 from part-time work.
At $31,000, Maria is in the Medicare levy reduction zone ($28,011-$35,013). Her reduced levy is 10c for each dollar over $28,011: $299 instead of the full $620 (2%). At $28,011 or less, she'd pay no Medicare levy at all.