🇦🇺 Medicare Levy: Calculator

Estimate your Australian Medicare Levy using the latest ATO-confirmed thresholds.

$
MEDICARE LEVY OWED
$0
Standard 2% rate
Effective Rate
0%
Threshold Zone
Full Levy

How the Medicare Levy Is Calculated

The Medicare Levy is a 2% levy on taxable income that helps fund Australia's public health system. Lower-income earners pay a reduced levy or none at all, based on thresholds that are higher for families, seniors, and pensioners, and increase with each dependent child.

Below the lower threshold: No levy
Between lower and upper threshold: 10% of the amount above the lower threshold
Above the upper threshold: 2% of total taxable income

2025-26 Thresholds Used (Latest ATO-Confirmed Figures)

This calculator uses the most recently confirmed ATO thresholds available: singles $28,011–$35,013 (senior/pensioner $44,268–$55,335); families $47,238–$59,047 plus $4,338/$5,423 per dependent child (senior/pensioner families $61,623–$77,028, same per-child additions). Medicare levy low-income thresholds for a given financial year are typically only legislated partway through the following year, so 2026-27's exact figures weren't yet available when this calculator was built — check the ATO website for updates once released.

Why the Upper Threshold Is Always 1.25× the Lower

The 10% phase-in rate and 2% standard rate are mathematically designed so the two calculations produce the same result exactly at the upper threshold — which is always 25% higher than the lower threshold for every category.

📎 Related Tools: Income Tax Calculator HECS-HELP Calculator Salary Calculator Superannuation Calculator

❓ Frequently Asked Questions

Who doesn't have to pay the Medicare Levy?
You pay no Medicare Levy if your taxable income is at or below the lower threshold for your situation — $28,011 for most singles, or higher for seniors, pensioners, and families with dependent children.
Is the Medicare Levy the same as the Medicare Levy Surcharge?
No. The standard Medicare Levy (2%) applies to almost all taxpayers above the low-income thresholds. The Medicare Levy Surcharge is a separate, additional charge (1%–1.5%) for higher-income earners who don't hold private hospital cover.
How does having dependent children change my threshold?
Each dependent child increases your family's lower threshold by $4,338 and your upper threshold by $5,423, meaning families with more children can earn more before the levy applies in full.
Why does this calculator use 2025-26 thresholds instead of 2026-27?
Medicare Levy low-income thresholds are typically confirmed by legislation partway through the following financial year, so 2026-27's exact thresholds weren't yet officially available when this calculator was built. The 2025-26 figures are the latest ATO-confirmed numbers.
Do seniors and pensioners get a different threshold?
Yes. Seniors and pensioners eligible for the Seniors and Pensioners Tax Offset (SAPTO) have higher lower and upper thresholds, meaning they can earn more before paying the full Medicare Levy.

🏆 About This Tool — Accuracy & Trust

🔒 Data Privacy: All calculations run entirely within your browser using JavaScript. Nothing you enter here is ever transmitted to our servers, stored, sold, or shared.

📐 Accuracy Note: This tool uses standard, widely published formulas and guidelines. Results are estimates for informational purposes; for financial, medical, or engineering decisions, consult a licensed professional.

📅 Last Updated: September 2026.