Medicare levy surcharge 2025–26: thresholds & rates
The Medicare levy surcharge applied in 2025-26 only if you did not hold private hospital cover and your income was above the thresholds. For singles, the surcharge was nil up to $101,000, 1% up to $118,000, 1.25% up to $158,000, then 1.5% above. For families, it was nil up to $202,000, 1% up to $236,000, 1.25% up to $316,000, then 1.5% above. The family thresholds rise by $1,500 for each dependent child after the first. The surcharge is separate from the 2% Medicare levy.
| Tier | Single | Family | Surcharge |
|---|---|---|---|
| Base | $101,000 or less | $202,000 or less | 0% |
| Tier 1 | $101,001 – $118,000 | $202,001 – $236,000 | 1% |
| Tier 2 | $118,001 – $158,000 | $236,001 – $316,000 | 1.25% |
| Tier 3 | $158,001 or more | $316,001 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 $97,000 in 2024–25 to $101,000 in 2025–26, up $4,000. The surcharge is a cliff, not a taper: without cover, an income of $101,001 pays $1,010, because the 1% rate applies to the whole income, while $101,000 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.