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.

MLS income thresholds and rates for 2025–26
TierSingleFamilySurcharge
Base$101,000 or less$202,000 or less0%
Tier 1$101,001 – $118,000$202,001 – $236,0001%
Tier 2$118,001 – $158,000$236,001 – $316,0001.25%
Tier 3$158,001 or more$316,001 or more1.5%

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.