Medicare Levy Surcharge Calculator
Work out your Medicare levy surcharge (MLS) tier and the 1%–1.5% surcharge you pay when your income is above the threshold and you don't have private hospital cover. Updated for 2026-27.
Medicare Levy Surcharge Calculator
Work out whether you pay the Medicare levy surcharge (1%–1.5%) and how much it costs when you don't have private hospital cover.
• Base / Tier 1 / Tier 2 / Tier 3: 2026-27
• The MLS is paid on top of the 2% Medicare levy. Income for MLS purposes = taxable income + reportable fringe benefits + net investment losses + reportable super contributions.
What is the Medicare Levy Surcharge?
The Medicare Levy Surcharge (MLS) is an extra 1%–1.5% tax on top of the standard 2% Medicare levy. You pay it when both of these apply: you (and your dependants) don't have an appropriate level of private patient hospital cover, and your income for MLS purposes is above the threshold for your circumstances.
MLS Income Thresholds 2026-27
For 2026-27 the MLS thresholds are $105,000 for singles and $210,000 for families (plus $1,500 per dependent child after the first). Above the base tier the rates are:
- Tier 1: 1% — singles $105,001–$123,000, families $210,001–$246,000.
- Tier 2: 1.25% — singles $123,001–$164,000, families $246,001–$328,000.
- Tier 3: 1.5% — singles over $164,000, families over $328,000.
What Counts as Income for MLS?
Your income for MLS purposes is taxable income plus reportable fringe benefits, reportable super contributions and total net investment losses (rental and financial). For couples, the combined income is used and the family thresholds apply.
How to Avoid the MLS
Hold an appropriate level of private patient hospital cover — hospital cover with an excess of $750 or less for a single policy, or $1,500 or less for other policies. Extras (general treatment) cover does not count. A basic hospital policy often costs less than the MLS, especially at higher incomes.
Frequently Asked Questions
What is the Medicare Levy Surcharge?
The MLS is an additional 1%–1.5% tax on top of the 2% Medicare levy. It applies to higher-income earners without appropriate private hospital cover.
What are the MLS thresholds for 2026-27?
Singles: $105,000. Families: $210,000 plus $1,500 per dependent child after the first. Above these, the rate is 1%, 1.25% or 1.5% depending on the tier.
Do I pay MLS if I have private health insurance?
No. If you hold an appropriate level of private patient hospital cover for the full income year, the MLS does not apply even if your income is above the threshold.
Is the MLS the same as the Medicare levy?
No. The Medicare levy is 2% of taxable income for everyone. The MLS is an extra 1%–1.5% for higher earners without private hospital cover.
What income counts for MLS purposes?
Taxable income plus reportable fringe benefits, reportable super contributions and net investment losses. For couples, the combined income is used.
Can I avoid the Medicare Levy Surcharge?
Yes — hold appropriate private hospital cover. Compare the cost of a basic hospital policy against your MLS liability; cover often works out cheaper.