- Published on
Medicare Levy & Medicare Levy Surcharge (MLS) Guide (2026–27)
- Authors
- Name
- Charlotte Smith
- https://x.com/CharlotteSmithAU
Medicare Levy & Medicare Levy Surcharge (MLS) Guide (2026–27)
Australia's public healthcare system, Medicare, is funded in part by the Medicare Levy and the Medicare Levy Surcharge (MLS).
1. The Standard Medicare Levy (2.0%)
Most Australian tax residents pay a standard 2.0% Medicare Levy on their taxable income.
Low-Income Exemption Thresholds
If your taxable income is below the ATO low-income threshold (~,000 for singles or ~,800 for families), you receive a full or partial reduction in the Medicare Levy.
2. The Medicare Levy Surcharge (MLS)
The Medicare Levy Surcharge (MLS) is an extra 1.0%, 1.25%, or 1.5% tax levied on higher-income earners who do not hold an eligible Australian private hospital insurance policy.
| Income Tier (Single) | Income Tier (Couple/Family) | MLS Rate |
|---|---|---|
| Below ,000 | Below ,000 | 0.0% (No Surcharge) |
| ,001 – ,000 | ,001 – ,000 | 1.0% |
| ,001 – ,000 | ,001 – ,000 | 1.25% |
| ,001+ | ,001+ | 1.5% |
Avoid Paying Extra Tax
If your income exceeds ,000 as a single person, taking out basic private hospital cover can be cheaper than paying the surcharge at tax time.
Calculate your exact Medicare obligations using our free Medicare Levy Calculator and Medicare Levy Surcharge Calculator.