Medicare Levy Surcharge Calculator
Estimate the Medicare Levy Surcharge that could apply for 2025–26 or 2026–27 based on household income, family status and days without appropriate hospital cover.
Key takeaways
- The MLS is separate from the ordinary Medicare levy.
- Extras-only cover does not provide an MLS exemption.
- This estimator cannot model every ATO income component or exemption.
Use your own amount because the surcharge is assessed for each taxpayer.
Enter 0 if appropriately covered for the whole year, or up to 365.
Planning estimate
$1,100
Estimated surcharge for 365 uncovered days, using an indicative rate of 1.0%.
- Tier-test income
- $110,000
- Base threshold
- $105,000
- Indicative MLS rate
- 1.0%
Official sources
Thresholds and rates are based on the Australian Government information current on 5 September 2026. Confirm them through the PrivateHealth.gov.au MLS page and the ATO.
If you are deciding whether hospital cover suits you, compare its actual exclusions, restrictions, excess and annual premium. A possible tax difference is not the same thing as clinical value.
How this MLS estimate works
The calculator compares single or family income with the published income-year thresholds, selects the corresponding 0%, 1%, 1.25% or 1.5% rate, and apportions the estimate for days without appropriate hospital cover.
For a couple or family, the combined family income determines the tier, while the estimate shown uses the individual income entered. Actual tax outcomes can differ because the ATO applies detailed definitions, dependant rules and exemptions.
Read before making a decision
FAQ
Medicare Levy Surcharge calculator questions
What is the Medicare Levy Surcharge?
The MLS is an additional income-tested levy that may apply when you, your spouse or dependants do not have appropriate private hospital cover. It is separate from the ordinary Medicare levy.
Does extras cover avoid the MLS?
No. Extras-only cover does not qualify. The cover must be appropriate private patient hospital insurance with a registered insurer and meet the permitted excess rules.
Does the calculator provide tax advice?
No. It is a planning estimate using published thresholds and the inputs you provide. The ATO determines your actual liability under the complete tax rules.
Can the MLS apply for only part of the year?
Yes. If you only held appropriate hospital cover for part of the income year, a surcharge may apply for uncovered days, subject to your circumstances and any exemption.
Are family thresholds different?
Yes. Couples and single parents use family thresholds. The threshold increases by $1,500 for each dependent child after the first.