Medicare Levy Surcharge calculator: find out what you owe in 2026–27

Use our free calculator to find out if you're liable for the surcharge and find plans that can help you avoid it.

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Medicare Levy Surcharge calculator

See what the surcharge could cost you without private hospital cover, and whether a real policy works out lower than the tax.

Includes base salary, bonuses, added super and other incomeIncome for Medicare levy surcharge purposesIncome for Medicare levy surcharge (MLS) purposes is used to work out whether you have to pay the MLS and the rate you will pay. If you have a spouse, we use your combined income for MLS purposes.Your income for MLS purposes is the sum of the following for you (and your spouse, if you have one): taxable income (including the net amount on which family trust distribution tax has been paid, but excluding any assessable first home super saver released amount); reportable fringe benefits; total net investment losses (net financial investment losses plus net rental property losses); and reportable super contributions (additional employer super contributions above the compulsory level plus deductible personal super contributions).If you have a spouse, also include their share of the net income of a trust on which the trustee must pay tax and which has not been included in their taxable income. If you had exempt foreign employment income, add it to your taxable income if your taxable income is $1 or more.

$

Once you've set your income and cover, the table below shows the cheapest hospital policy on Finder for each tier and whether it beats the surcharge.

Surcharge payable

$0

Based on your details for 2026–27

Base tier · 0%
Income assessed$110,000
Your threshold$105,000
Surcharge rate1.0%
If uninsured all year$1,100

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Hospital cover on Finder

TierPolicyPremiumPer yearvs surcharge
 We've shown some of the cheapest policies available in your state. Premiums shown include the Australian Government Rebate (based on your income, assuming age under 65 and no Lifetime Health Cover loading). Rows in green cost less over the year than your full-year surcharge. Where a policy has a Finder Reward, the per-year figure also shows the cost after the one-off first-year reward.

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Take our easy quiz to find the best match.

This calculator gives an estimate only and isn't tax advice. The surcharge tier is set by your income for MLS purposes (taxable income plus reportable fringe benefits, reportable super contributions and net investment losses), while the surcharge itself applies to your taxable income. Your actual liability depends on your full circumstances. For couples, each partner is generally assessed on their own taxable income at the family-tier rate. Premium figures are pulled from Finder's health insurance database and refresh periodically; premiums shown include the Australian Government Private Health Insurance Rebate, calculated on your entered income, an assumed age under 65 (the under-65 rebate tier) and no Lifetime Health Cover loading, so your actual premium will differ if your age or circumstances differ. Not all policies on the market are compared — the table shows the two cheapest policies from Finder's Partners per tier, per state. Finder Rewards shown are "up to" amounts, subject to eligibility and the provider's terms, and are usually paid after a qualifying period rather than at sign-up. Check the ATO or speak to a registered tax agent before making decisions.

If you earn above a certain income and don't have private hospital cover, the Australian Government charges you an extra tax at the end of the financial year. It's called the Medicare Levy Surcharge (MLS), and a lot of Australians don't realise they're paying it until they lodge their return.

The good news: it's avoidable. And with thresholds changing for 2026–27, now is a good time to check exactly where you stand.

Calculate what you'll pay

What is the Medicare Levy Surcharge?

The Medicare Levy Surcharge (MLS) is a tax on top of the standard 2% Medicare Levy that all Australian taxpayers pay. It exists to encourage higher earners to take out private hospital cover and take some pressure off the public health system.

The surcharge ranges from 1% to 1.5% of your income depending on how much you earn and it only applies if you don't hold an eligible private hospital policy for the full year.

A few things worth knowing about the MLS:

  • It's not the same as the Medicare Levy. Everyone pays the 2% Medicare Levy. The MLS is an additional charge on top of that, and only applies to people above the income threshold without cover.
  • Extras-only cover doesn't count. You need hospital cover specifically. A policy that only covers things like dental and physio won't exempt you from the surcharge.
  • It's calculated on more than just your salary. Your income for MLS purposes includes reportable fringe benefits and net investment losses, not just your taxable income.
  • It's pro-rata. If you had cover for part of the year, you'll only be charged for the days you were uninsured.

The 2026-27 financial year thresholds

The income thresholds that trigger the MLS are indexed each year. For the 2026–27 financial year, the entry points have increased:

  • Singles: $105,001 (up from $101,000 in 2025–26)
  • Couples and families: $210,001 (up from $202,000 in 2025–26)
  • Family threshold: increases by $1,500 for each dependent child after the first

If your income sits above these figures and you don't hold eligible hospital cover, you'll pay the surcharge on your next tax return. If you've had a pay rise recently, you're right on the edge, it's worth checking your position now rather than getting a surprise bill later.

How to use the Finder MLS calculator

The calculator below is designed to give you a quick, clear picture of your MLS position for 2026–27. Here's how to use it:

  1. Enter your income: Plug in your annual income and state.
  2. Select your cover status: Tell the calculator whether you currently hold eligible private hospital cover and for how many days of the financial year.
  3. Add family details if relevant: If you have a spouse or dependants, enter your combined household income to get an accurate result.
  4. See your result: The calculator will show your estimated MLS liability and some of the cheaper options based on your circumstances.

What's next?

If the calculator shows you're better off with cover, it's worth comparing your options. Basic hospital policies can start from as little as a few dollars a day, and with the government rebate factored in, the real cost is often lower than people expect.

Use the health insurance quiz above to compare policies and find one that fits your budget. You might be surprised how little it takes to avoid the surcharge entirely.

FAQs

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Written by

Senior writer

Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

Ceyda's expertise
Ceyda has written 192 Finder guides across topics including:
  • Insurance
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