How much is the Medicare levy?
It’s 2% of your taxable income. On $80,000, that’s $1,600 a year, or about $62 a fortnight.
Your employer includes it in the tax they take from each pay, so you don’t pay it separately.
Do I pay less on a low income?
Yes. If you’re single and your taxable income is $28,011 or less, you pay no levy. Above that, it starts small and grows by 10 cents for every extra dollar, until it reaches the full 2% at about $35,013.
Families, seniors and pensioners can earn more before the levy starts.
Families, seniors and pensioners can earn more before they pay it. Some people don’t pay it at all, such as foreign residents and people who can’t get Medicare benefits; they claim an exemption in their tax return.
What is the Medicare levy surcharge?
It’s an extra charge for higher earners who don’t have private hospital cover. The idea is to encourage people to take out private cover.
For 2026–27, singles pay:
| Income (singles) | Surcharge |
|---|---|
| $105,000 or less | None |
| $105,001 to $123,000 | 1% |
| $123,001 to $164,000 | 1.25% |
| Over $164,000 | 1.5% |
Example: you earn $110,000 and have no private hospital cover. The surcharge is 1% of your whole income: $1,100, on top of the normal levy.
Good to know:
- For families, the limits are double, plus $1,500 for each child after the first.
- The income used here also includes things like salary-sacrificed super and fringe benefits.
- The surcharge usually isn’t taken from your pay. If you owe it, it’s added when you lodge your tax return.
Which do I pay?
- The levy: almost every resident, whether or not you have private cover.
- The surcharge as well: only if your income is over the limit and you don’t have private hospital cover (for the days you were without it).
See it in your pay
The pay calculator shows your Medicare levy, and the surcharge if you choose “no private hospital cover”. For all the 2026–27 rates, see Australian tax rates.