Medicare Levy Surcharge thresholds, 2026–27
| Tier | Single | Family | Rate |
|---|---|---|---|
| Base tier | $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 and over | $328,001 and over | 1.5% |
Source: Australian Taxation Office, Medicare levy surcharge income, thresholds and rates. Family thresholds increase by $1,500 for each MLS dependent child after the first. Use the FY switcher above for 2025–26 figures ($101,000 / $118,000 / $158,000 single; $202,000 / $236,000 / $316,000 family).
Questions people actually ask
How do I avoid the Medicare Levy Surcharge?+
Hold an appropriate level of private hospital cover for the full income year (excesses/co-payments up to $750 for singles or $1,500 for families/couples are allowed). If you hold cover, the surcharge doesn't apply regardless of your income.
Is the Medicare Levy Surcharge the same as the Medicare levy?+
No. The Medicare levy is a separate 2% charge almost all taxpayers pay. The surcharge is an extra 1% to 1.5% only for higher earners who don't hold private hospital cover.
Do dependent children affect the family threshold?+
Yes. The family income threshold increases by $1,500 for each MLS dependent child after the first — the first child doesn't add anything, but the second, third and so on each add $1,500 to every tier.