Single, no PHI, $110,000 (2026–27)
- MLS income $110,000 is above the single base ceiling $105,000 → Tier 1 — 1%.
- Medicare levy $2,200.00 (Full 2% individual).
- MLS $1,100.00; total $3,300.00.
🇦🇺 AustraliaMedicare & MLSATO Rates2026–27
Medicare Levy & MLS Calculator Australia 2026
Estimate the 2% Medicare levy (with low-income shade-in) and Medicare Levy Surcharge by income, family status, dependents, and private hospital cover — singles face MLS above $105,000 in 2026–27.
By Sammy S. · Founder · AuthorUpdated for 2026
2%
Medicare levy
$105,000
Single MLS base (26–27)
$210,000
Family MLS base (26–27)
1–1.5%
MLS tier rates
Calculate Medicare levy & MLS (AUD)
Enter income for MLS purposes, set family status and private hospital cover, and review levy, MLS tier, and weekly totals — results update instantly.
Your inputs
Income, family status & private health
A$
Also used as taxable income for the Medicare levy estimate. Add RFB and other ATO MLS add-backs when they apply.
Options
Educational estimate only. Does not model full levy exemptions, partial-year cover gaps, or private health premiums.
Levy + MLS (annual)
2026–27 (current)$3,300.00
Single
Medicare levy$2,200.00
MLS$1,100.00
MLS tierTier 1 — 1%
Levy bandFull 2% individual
Weekly$63.46
Monthly$275.00
How to use
1
Enter your income
Use income for MLS purposes in AUD (taxable income plus the ATO add-backs that apply to you).
2
Set family & cover
Choose single or family, spouse income and dependents if needed, and whether you have appropriate private hospital cover.
3
Review levy + MLS
See Medicare levy, MLS tier, PHI savings, and weekly / monthly totals for the selected year.
Who this helps
Employees near MLS tiersCheck whether a pay rise or RFB pushes you into Tier 1–3 and what MLS would cost without hospital cover.
Couples & parentsModel combined family income, dependent child threshold lifts, and each adult’s MLS on their own income.
PHI decision makersCompare MLS payable without cover to the tax saving if appropriate hospital cover zeros the surcharge.
2026–27 focus
Default year is 2026–27. Switch to 2025–26 to compare indexed MLS single and family ceilings side by side.
Methodology — Medicare Levy & MLS
Medicare levy and Medicare Levy Surcharge (MLS) estimates come from the income, family status, dependents, private hospital cover, and financial year you select — not a live ATO feed. Levy low-income shade-in and 2026–27 / 2025–26 MLS tiers match ATO tables. Below are the formulas, steps, exclusions, and worked examples from the same engine as the live calculator.
Last updated 2026-08-15. Open the live calculator.
Formulas
Full Medicare levy
Levy = taxable income × 2% when above the individual upper low-income threshold
Individual shade-in (s 7)
If taxable income is between individual lower and upper → (income − lower) × 10¢ per $1
Family reduction (s 8)
If family income is between family lower and upper → max(0, individual levy − (family upper − family income) × 8¢). Family income at or below the family lower threshold → $0
MLS tier
Tier from single or family income for MLS purposes (family thresholds + A$1,500 per dependent child after the first)
MLS amount
If no appropriate private hospital cover → your income for MLS purposes × tier rate (1% / 1.25% / 1.5%); otherwise $0
Total
Total = Medicare levy + MLS
Rounding
AUD amounts rounded to the nearest cent (2 decimal places)
Calculation steps
- Enter your income. ATO income for MLS purposes usually includes taxable income, reportable fringe benefits, net investment losses, reportable super, and exempt foreign employment income where applicable. (Income for MLS purposes / taxable income proxy (AUD))
- Set family status. Family status uses combined income for MLS tiers and family Medicare levy reduction. Dependents raise family MLS thresholds by A$1,500 after the first child. (Single · Family (+ spouse income & dependents))
- Private hospital cover. MLS only applies when you do not hold appropriate private patient hospital cover for the period. Extras-only cover is not enough. (Appropriate cover → MLS $0)
- Choose the financial year. MLS income tiers index each year. Levy low-income bands use the published ATO shade-in thresholds. (2026–27 · 2025–26)
- Review levy + MLS. See Medicare levy, MLS tier/rate, PHI savings if cover would zero MLS, and combined total. (Annual · weekly · monthly)
Worked examples
Family, 2 children, no PHI ($120,000 + spouse $100,000)
- Combined MLS income $220,000; thresholds include +$1,500 for the second child.
- Tier: Tier 1 — 1%; MLS on your income $1,200.00.
- Medicare levy $2,400.00; total $3,600.00.
ATO Ashton SAPTO family example
- Taxable income $49,700 + spouse $21,700 = family $71,400 with SAPTO thresholds.
- Engine Medicare levy $92.96 (ATO published calculator result $92.90; cent-rounding may differ by a few cents).
- Uses individual 10c shade-in, then family 8c reduction — not a single 10c family shade-in.
Exclusions
- Full Medicare levy exemptions (e.g. certain medical exemption cards) — not modeled
- Day-by-day private cover gaps within the year — cover is modeled as yes/no for the year
- Separate taxable income vs MLS income adjustments beyond the single income field
- State private health insurance rebates or premium costs
- HELP / HECS, income tax, or Super Guarantee
Official sources
- ATO — Medicare levy
2% levy and low-income reduction overview
- ATO — Medicare levy reduction (family income)
Family / SAPTO shade-in thresholds and dependent child increments
- ATO — Medicare levy surcharge income thresholds and rates
2026-27 single/family MLS tiers; +$1,500 per child after the first
Key takeaways — Medicare Levy & MLS
- Medicare levy is usually 2% of taxable income, with low-income shade-in from $28,011 to $35,013 for singles.
- MLS is separate — it only applies without appropriate private patient hospital cover, at 1%, 1.25%, or 1.5% of your income for MLS purposes.
- For 2026–27, singles face MLS above $105,000; families above $210,000 (plus $1,500 per dependent child after the first).
- At $110,000 single with no cover (2026–27): levy $2,200.00 + MLS $1,100.00 = $3,300.00.
- Same income with appropriate hospital cover: MLS drops to $0.00 (saves $1,100.00).
- Family example ($120,000 + spouse $100,000, 2 children, no cover): total $3,600.00.
How to estimate Medicare levy and MLS
Enter the income figure the ATO uses for MLS purposes when you can — taxable income alone understates MLS if you have reportable fringe benefits or similar add-backs.
Switch to family when you have a spouse or sole-care dependents so MLS tiers and family levy reduction use combined income and child increments.
Toggle private hospital cover to compare MLS cost versus holding appropriate cover for the year.
Rates and thresholds
| Item | Detail |
|---|---|
| Medicare levy rate | 2% of taxable income (full rate) |
| Single low-income band | $28,011 – $35,013 shade-in |
| 2026–27 single MLS base | ≤ $105,000 → 0% |
| 2026–27 family MLS base | ≤ $210,000 → 0% (+$1,500 / child after first) |
| 2025–26 single MLS base | ≤ $101,000 → 0% |
2026–27 MLS tiers (ATO)
| Income for MLS purposes | Rate |
|---|---|
| Single ≤ $105,000 | 0% |
| $105,001 – $123,000 | 1% |
| $123,001 – $164,000 | 1.25% |
| $164,001+ | 1.5% |
| Family ≤ $210,000 | 0% |
| $210,001 – $246,000 | 1% |
| $246,001 – $328,000 | 1.25% |
| $328,001+ | 1.5% |
Formulas in plain language
Medicare levy
2% with low-income shade-in
$50,000 single → levy $1,000.00
MLS without cover
Your MLS income × tier rate
$110,000 single 2026–27 → MLS $1,100.00 (Tier 1 — 1%)
Private hospital cover
Appropriate cover → MLS $0
$110,000 with cover → MLS $0.00 (saves $1,100.00)
Single income ladder (no hospital cover, 2026–27)
Engine-sourced examples. At $110,000 total levy + MLS is $3,300.00.
| Income | Levy | MLS | Total |
|---|---|---|---|
| $30,000 | $198.90 | $0.00 | $198.90 |
| $35,000 | $698.90 | $0.00 | $698.90 |
| $50,000 | $1,000.00 | $0.00 | $1,000.00 |
| $80,000 | $1,600.00 | $0.00 | $1,600.00 |
| $100,000 | $2,000.00 | $0.00 | $2,000.00 |
| $110,000 | $2,200.00 | $1,100.00 | $3,300.00 |
| $120,000 | $2,400.00 | $1,200.00 | $3,600.00 |
| $160,000 | $3,200.00 | $2,000.00 | $5,200.00 |
| $200,000 | $4,000.00 | $3,000.00 | $7,000.00 |
| $250,000 | $5,000.00 | $3,750.00 | $8,750.00 |
Myths vs facts
“Medicare levy and MLS are the same thing.”
No. The levy is the standard 2% (with low-income reduction). MLS is an extra surcharge for higher incomes without appropriate private hospital cover.
“Extras-only private health avoids MLS.”
ATO rules require appropriate private patient hospital cover. Extras-only policies generally do not stop MLS.
“Family MLS uses only my salary.”
Family status uses combined income for MLS purposes to pick the tier, then applies that rate to your income for MLS purposes.
“Below the MLS threshold I never pay Medicare.”
You can still pay the Medicare levy. At $50,000 single, levy is $1,000.00 with MLS $0.00.
Glossary
- Medicare levy
- Usually 2% of taxable income for residents, with published low-income shade-in thresholds (ATO).
- Medicare Levy Surcharge (MLS)
- Extra 1% / 1.25% / 1.5% on income for MLS purposes when you lack appropriate private patient hospital cover and exceed the ATO single or family tier thresholds.
- Income for MLS purposes
- ATO income test amount — typically taxable income plus reportable fringe benefits, net investment losses, reportable super contributions, and certain other add-backs.
- Appropriate hospital cover
- Private patient hospital cover that meets ATO MLS rules for the period you need to avoid the surcharge.
- Family MLS threshold
- Starts at $210,000 for 2026–27 and increases by $1,500 for each MLS dependent child after the first.
Who this calculator helps
Employees near MLS tiers
Check whether a pay rise or RFB pushes you into Tier 1–3 and what MLS would cost without hospital cover.
Couples & parents
Model combined family income, dependent child threshold lifts, and each adult’s MLS on their own income.
PHI decision makers
Compare MLS payable without cover to the tax saving if appropriate hospital cover zeros the surcharge.
Tax planners
Separate levy vs MLS for estimates alongside the Australia paycheck and HELP calculators.
Common mistakes
- Using taxable income alone when reportable fringe benefits belong in income for MLS purposes
- Assuming family thresholds apply while filing as single without dependents
- Forgetting the $1,500 lift for each MLS dependent child after the first
- Thinking extras-only cover removes MLS
- Mixing 2025–26 and 2026–27 MLS ceilings when comparing years
Checklist
- Confirm income for MLS purposes (not just cash salary)
- Set single vs family and enter spouse income when relevant
- Count MLS dependent children for threshold lifts
- Toggle private hospital cover to compare MLS
- Pick the correct financial year (2026–27 vs 2025–26)
- Cross-check full take-home in the Australia paycheck calculator
Amount pages
Australia Medicare Levy & MLS FAQ
Resident Medicare levy (2% with shade-in) plus Medicare Levy Surcharge tiers for single or family status, dependents, and private hospital cover for 2026–27 (and 2025–26 MLS tables).
MLS is nil at or below $105,000 of income for MLS purposes. Above that, Tier 1 is 1% up to $123,000, then 1.25% and 1.5% (ATO).
For 2026–27 the family base ceiling is $210,000. It rises by $1,500 for each MLS dependent child after the first. The tier is based on combined family income; the rate applies to your income for MLS purposes.
No. Appropriate private hospital cover can remove MLS, but the Medicare levy can still apply. Example at $110,000 with cover: levy $2,200.00, MLS $0.00.
For 2025–26 / 2026–27 published ATO bands, singles pay no levy at or below $28,011, a reduced levy through $35,013, then the full 2%. At $30,000 this engine estimates levy $198.90.
Family Medicare levy lower thresholds rise by $4,338 per dependent child and upper thresholds by $5,423 (ATO family reduction page). Family reduction itself subtracts 8¢ per $1 of the gap from the family upper threshold down to family income, after the individual levy is calculated.
2026–27: MLS $1,100.00. Same income under 2025–26: MLS $1,100.00 (Tier 1 — 1%).
Full levy exemptions, partial-year cover gaps, premium costs/rebates, and HELP or income tax. Use the linked Australia paycheck and HELP calculators for those.
Conceptually MLS is an income-triggered extra health levy, similar in role to US Additional Medicare — but rates and rules differ. See the FICA calculator for the US twin, and this tool for ATO MLS.
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