Medicare levy surcharge 2026–27: thresholds & rates
The Medicare levy surcharge is an extra charge on higher earners who do not hold an appropriate private hospital cover. If you have that cover, you do not pay it. Without it, the rate depends on your income for surcharge purposes. Singles pay nothing up to $105,000, 1% to $123,000, 1.25% to $164,000, and 1.5% above that. Family thresholds are $210,000, $246,000 and $328,000 for the same tiers, and rise by $1,500 for each dependent child after the first. The tiers are shown on this page. This is general information, not advice.
| Tier | Single | Family | Surcharge |
|---|---|---|---|
| Base | $105,000 or less | $210,000 or less | 0% |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.5% |
Singles tier edges by year
| Year | Base ends | Tier 1 ends | Tier 2 ends |
|---|---|---|---|
| 2024–25 | $97,000 | $113,000 | $151,000 |
| 2025–26 | $101,000 | $118,000 | $158,000 |
| 2026–27 | $105,000 | $123,000 | $164,000 |
The singles base threshold rose from $101,000 in 2025–26 to $105,000 in 2026–27, up $4,000. The surcharge is a cliff, not a taper: without cover, an income of $105,001 pays $1,050, because the 1% rate applies to the whole income, while $105,000 pays nothing.
Other years
Family thresholds increase by $1,500 for each dependent child after the first. The surcharge is calculated on income for MLS purposes, which can be higher than taxable income. It is separate from the standard 2% Medicare levy. Toggle “private hospital cover” off in the take-home calculator to see the effect on your pay.