Medicare Levy Surcharge calculator
Earning $105,001 or more? You are paying a tax that buys you nothing. See what it costs you this year, and what hospital cover would cost instead.
Income & Household
Health Insurance Details
1 July 2026 – 30 June 2027
The premium for eligible hospital cover. Not sure? The comparison below fills real prices in for you.
Advanced options
Must be $750 or less (singles) or $1,500 or less (families) to clear MLS.
Your result
-$961
Paying the surcharge looks cheaper
This compares your estimated Medicare Levy Surcharge against the cost of hospital cover for the selected period.
Income used
Taxable income + reportable benefits
MLS is a tax surcharge. Lifetime Health Cover loading is different. LHC increases hospital cover premiums if it applies.
FY 2026-27 coverage period
The later your cover starts in the financial year, the fewer days are covered and the more surcharge may remain payable.
The bottom line
On this income you sit under the 2026-27 surcharge threshold, so no Medicare Levy Surcharge applies. Hospital cover is then a health decision rather than a tax one, because there is no surcharge for it to offset.
Income Break-Even Point
$115,000
If your income stays above this line, private insurance is objectively cheaper than paying the surcharge.
ATO Policy Compliance
To clear MLS you need hospital cover with an excess of $750 or less (singles) or $1,500 or less (families). Extras-only cover does not count.
Compliant cover
Policies that clear your surcharge
To remove your $0 surcharge, you need hospital cover with an excess of $750 or less. These are the cheapest Bronze Plus policies from five major insurers.
Prices from privatehealth.gov.au, July 2026 release, for WA. The government rebate is applied for your income tier. Under-30 discounts are not included, so you may pay less. Links may earn us a commission at no cost to you.
MedibankBronze Plus Value
HBFLite Bronze Hospital Plus
BupaBronze Plus Simple Hospital
nibBronze Protect Hospital Plus
HCFHospital Bronze Plus
What this page helps you work out
The Medicare Levy Surcharge is an extra tax that can apply when your income is above the relevant threshold and you do not hold eligible private hospital cover.
This page helps you answer three simple questions:
- Am I liable for the Medicare Levy Surcharge?
- Which MLS threshold applies to my income?
- Would hospital cover cost less than paying the surcharge?
No eligible hospital cover
You may pay up to 1.5% of your income for MLS purposes as an additional tax.
With eligible hospital cover
Your MLS liability may reduce to $0, while you also receive private hospital benefits.
Medicare Levy Surcharge thresholds for 2026–27
You are generally not liable for the Medicare Levy Surcharge if your income is below the relevant threshold. Once your income moves above the threshold, the surcharge rate can increase depending on your income tier.
- Singles: MLS may apply once your income moves above the single threshold.
- Couples and families: MLS may apply once combined family income moves above the family threshold.
- Extras-only cover: dental, optical, physio, and extras cover usually do not remove MLS liability.
2026-27 MLS income tiers: Singles
Your highlighted tier updates based on your selected date and calculator inputs.
| Income range | MLS rate | Estimated surcharge |
|---|---|---|
| $0k – $105k | 0% | $0 |
| $105.001k – $123k | 1% | $1,000 |
| $123.001k – $164k | 1.25% | $1,250 |
| $164.001k+ | 1.50% | $1,500 |
Based on your current input income of $100,000 and the selected 2026-27 financial year. This is a general estimate only and does not replace tax advice.
What income is used for MLS calculations?
Medicare Levy Surcharge calculations use your income for MLS purposes, not just your base salary. This can include taxable income, reportable fringe benefits, reportable super contributions, net investment losses, and spouse income where relevant.
That is why someone can be liable for the Medicare Levy Surcharge even if their salary alone appears close to the threshold.
Use the calculator below
1. Enter your income
Add your taxable income and any MLS-relevant amounts.
2. Add cover details
Select whether you held eligible hospital cover during the year.
3. Compare the result
See whether paying for cover may cost less than paying the surcharge.