The Medicare levy and the Medicare levy surcharge
Updated 13 November 2026.
Two different charges share a name. The Medicare levy is 2% of taxable income and most residents pay it. The Medicare levy surcharge is an extra 1% to 1.5% for people on higher incomes who don't have private hospital cover.
The 2% Medicare levy
On low incomes you pay less or none. A single person pays nothing up to $28,011, and the levy phases in until $35,013. Families get a higher threshold: $47,238 plus $4,338 for each dependent child. Seniors and pensioners have higher thresholds again. These are the latest legislated thresholds; the 2026–27 ones haven't been set yet.
Medicare levy surcharge thresholds for 2026–27
| Tier | Singles | Families | Surcharge |
|---|---|---|---|
| Base tier | $105,000 or less | $210,000 or less | 0% |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.5% |
Family thresholds go up by $1,500 for each dependent child after the first.
Thresholds for 2025–26
| Tier | Singles | Families | Surcharge |
|---|---|---|---|
| Base tier | $101,000 or less | $202,000 or less | 0% |
| Tier 1 | $101,001 – $118,000 | $202,001 – $236,000 | 1% |
| Tier 2 | $118,001 – $158,000 | $236,001 – $316,000 | 1.25% |
| Tier 3 | $158,001 or more | $316,001 or more | 1.5% |
How much the surcharge costs
The surcharge is a percentage of your whole taxable income (plus any reportable fringe benefits), not just the part above the threshold. For a single person without hospital cover in 2026–27:
| Income | Surcharge for the year |
|---|---|
| $110,000 | $1,100.00 |
| $130,000 | $1,625.00 |
| $170,000 | $2,550.00 |
The income used to pick your tier is your taxable income plus things like reportable fringe benefits, reportable super contributions and net investment losses. You avoid the surcharge for any days you hold an appropriate level of private hospital cover; extras-only cover doesn't count.
Add or remove hospital cover in the tax refund calculator to see the difference for you.