Medicare Levy Calculator — How Much Medicare Levy Do You Pay?
Calculate your Medicare Levy and Medicare Levy Surcharge obligations in Australia. See income thresholds and exemptions for 2026.
The Medicare Levy is a 2% tax on taxable income that funds Australia public healthcare system. Most taxpayers pay the full 2% but low-income earners pay a reduced rate or are exempt. The Medicare Levy Surcharge (additional 1-1.5%) applies to singles earning above $93000 and families above $186000 who do not have private hospital cover. Taking out basic private health insurance avoids the surcharge and often costs less.
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Key Information
| Parameter | Details |
|---|---|
| Medicare Levy Rate | 2% of taxable income |
| MLS Single Threshold | $93000 income |
| MLS Family Threshold | $186000 income |
| MLS Rate | 1% - 1.5% (without private cover) |
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Use Calculator NowFrequently Asked Questions
How much is Medicare Levy on $80000 salary?
On an $80000 taxable income the Medicare Levy is $80000 x 2% = $1600 per year or $133 per month. This is in addition to your regular income tax. The levy is automatically included in your PAYG withholding so you do not need to pay it separately. Low-income earners below $24276 pay no Medicare Levy and those between $24276-$30345 pay a reduced rate.
Should I get private health insurance to avoid MLS?
If you earn above $93000 (single) compare the MLS cost versus basic hospital cover. The MLS on $120000 income is $1200 per year (1%). Basic hospital cover may cost $1200-$1800 per year but provides actual health coverage. Above $140000 income the MLS rises to 1.25% ($1750) making private cover clearly better value. Most financial advisors recommend taking basic hospital cover once income exceeds the threshold.
What does Medicare Levy actually cover?
Medicare Levy funds Australia public healthcare including free treatment at public hospitals subsidised GP visits through bulk billing PBS pharmaceutical subsidies and diagnostic imaging. It does not cover dental optical physiotherapy or private hospital stays. Having private health insurance does not exempt you from the Medicare Levy — you still pay the 2% but avoid the additional surcharge.
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Last updated: March 2026