Medicare levy and surcharge 2026–27
Two different charges: the Medicare levy most residents pay, and the surcharge for higher earners without private hospital cover.
Medicare levy: 2%
Residents pay 2% of taxable income. Singles with taxable income of $28,011 or less pay nothing. Above that, the levy is 10% of the income over $28,011 until that reaches the full 2%, at about $35,013. Payroll includes the levy in the tax withheld from each pay.
The 2026–27 low-income threshold has not been announced yet; it is normally set in the next Budget and backdated. The ATO's 2026–27 withholding formulas use $28,011, the 2025–26 figure, and so does WagePrism until the new one is published.
Source: ATO, Medicare levy reduction for low-income earners
| Taxable income | Medicare levy |
|---|---|
| $25,000 | $0.00 |
| $30,000 | $198.90 |
| $34,000 | $598.90 |
| $50,000 | $1,000.00 |
| $110,000 | $2,200.00 |
Medicare levy surcharge (singles)
If you don't have an appropriate level of private patient hospital cover and your income for surcharge purposes is above the base tier, you pay the surcharge on top of the levy.
| Income for MLS purposes | Surcharge |
|---|---|
| $105,000 or less | 0% |
| $105,001 – $123,000 | 1% |
| $123,001 – $164,000 | 1.25% |
| $164,001 and over | 1.5% |
Income for surcharge purposes adds reportable fringe benefits, reportable super contributions (such as salary sacrifice) and net investment losses to your taxable income. Family thresholds are higher. The surcharge isn't withheld from your pay, so it usually shows up as a bill at tax time.
Source: ATO, Medicare levy surcharge income, thresholds and rates
See how it affects your refund in the pay calculator (More options → no private hospital cover).
Rates checked 19 October 2026 against the ATO for the 2026–27 tax year (1 July 2026 – 30 June 2027). How we calculate · Sources · Accuracy tests · Report an error
Estimate for information only, based on Australia 2026–27 rates. Not tax or financial advice. Your payslip may differ (for example tax code, benefits or other deductions).