Medicare levy surcharge calculator 2026-27
If you earn over the threshold and have no appropriate private patient hospital cover, the ATO adds a surcharge of 1% to 1.5% at tax time. See your tier and what the surcharge would cost without appropriate hospital cover.
- 2026-27 tax year
- Rates verified against the ATO on
- Sources · How we calculate · How we check
Estimated Medicare levy surcharge without hospital cover, 2026‑27
$1,875
Tier 2: 1.25% of your taxable income and reportable fringe benefits ($150,000). With appropriate private patient hospital cover all year, it is $0.
| Tier | Income | Rate |
|---|---|---|
| Base | $0 to $105,000 | Nil |
| Tier 1 | $105,001 to $123,000 | 1% |
| Tier 2 you | $123,001 to $164,000 | 1.25% |
| Tier 3 | $164,001 and over | 1.5% |
Income for surcharge purposes is $150,000. The next tier starts at $164,001. Assessed with your tax return, not withheld from pay.
Examples for a single person
| Taxable income | Rate | Surcharge a year |
|---|---|---|
| $100,000 | Nil | $0 |
| $110,000 | 1% | $1,100 |
| $140,000 | 1.25% | $1,750 |
| $180,000 | 1.5% | $2,700 |
| $250,000 | 1.5% | $3,750 |
| $400,000 | 1.5% | $6,000 |
The surcharge applies to your whole income, not just the part over a threshold, so crossing a tier boundary by a dollar raises the rate on everything. Single, no other add-backs.
How we calculate
- Your tier depends on income for surcharge purposes: taxable income + reportable fringe benefits + net investment losses + reportable super contributions. Couples and families use combined income.
- The surcharge is then charged on your own taxable income plus reportable fringe benefits, at your tier's rate.
- 2026-27 thresholds: singles $105,000, $123,000 and $164,000; families $210,000, $246,000 and $328,000, plus $1,500 per child after the first.
- Assumes no appropriate hospital cover for the whole year. The surcharge is counted by day: it applies to days when you, or your spouse or any dependant, did not have appropriate cover. If a spouse joins the policy part-way through the year, both of you can be liable for the days before that.
- The $1,500 per child increase is applied to the family threshold only, as the ATO states it.
Questions
What counts as appropriate hospital cover?
Private patient hospital cover with an excess of $750 or less for a single person ($1,500 for couples and families). Extras-only cover does not count.
Is the surcharge taken out of my pay?
No. Your employer does not withhold it. The ATO adds it when your tax return is assessed.
Does salary sacrifice avoid it?
No. Salary sacrifice is a reportable super contribution and is added back when the ATO tests your income.