Australia Medicare Levy Calculator 2026-27

How does the tool calculate the Medicare levy for a single person?

Using the figures built into this tool: nothing up to $28,011, 10 cents for each dollar between $28,011 and about $35,013, and 2% of the whole income above that. At $30,000 that gives $199; at $80,000 it is $1,600. The phase-in ends at the point where 10 cents per dollar equals 2% of the income, so there is no jump.

How does the family option work?

The threshold is $47,238 plus $4,338 for each dependent child. Up to the threshold the levy is nil; from there it is 10 cents for each dollar over the threshold until that equals 2% of the income you entered, which happens at the threshold divided by 0.8 (about $59,047 with no children); above that it is 2% of the whole income. The tool takes the single income figure and does not split it between partners or compute each spouse’s levy separately, so the result is an approximation for a couple.

How are the surcharge tiers set?

If you say you have no private hospital cover, the tool applies 1% of your whole income above $105,000, 1.25% above $123,000 and 1.5% above $164,000 for a single person (the 2026-27 tiers). For a family it uses $210,000, $246,000 and $328,000, and adds $1,500 to each for every child after the first. A single person on $120,000 pays $1,200, and a family with three children on $220,000 pays 1% of $220,000, which is $2,200 because the first tier is $213,000.

Why does the surcharge jump so sharply at the first tier?

Because the percentage applies to the whole income, not just the part above the mark. At $105,000 the surcharge is $0 and at $105,001 it is 1% of $105,001, about $1,050. The same step occurs at each later tier, for instance from 1% to 1.25% of income above $123,000. This is how the tool models the tiers and is a reason to compare incomes close to a boundary.

What does the “Private cover saves” line mean?

It repeats the surcharge amount for someone without cover, as the amount that would not apply with cover. If you say you have cover the surcharge is zero and the line shows that the cover is already assumed. It is not a comparison with insurance premiums, which the tool does not know.

What does the tool not test?

It does not check the definition of income used for the surcharge, part-year coverage, exemption certificates, residency or visa status, the type of hospital policy, or the excess. It treats a yes as full cover for the whole year. Dependents are only used for the family option; a single person who enters children gets no change.

How current are the thresholds?

The surcharge tiers are the 2026-27 figures built into this tool. The low-income levy marks ($28,011 single, $47,238 family and $4,338 per child) are the 2025-26 amounts, which the ATO publishes and which were increased by a measure announced in the 2026-27 Budget that received Royal Assent on 30 June 2026; the tool does not hold a separate 2026-27 set. Thresholds change at least every 1 July, the tool’s tables are not updated automatically, and the ATO or a qualified adviser decides what applies to you. Compare the tool’s thresholds with the ATO’s current figures before relying on any output.