OneCalcs Australia
2% levy · 2025–26 low-income thresholds · ATOChecked 26 September 2026

Medicare levy calculator

The Medicare levy is 2% of taxable income, phased in for low incomes.

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Medicare levy
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How the low-income reduction works

At or below the lower threshold you pay no levy. Between the lower and upper thresholds you pay 10% of the income above the lower threshold, which is less than 2% of your whole income. Above the upper threshold you pay the full 2%.

No levy up toReduced levy up to
Singles$28,011$35,013
Seniors and pensioners$44,268$55,335
Taxable income (single)Medicare levy
$25,000$0.00
$30,000$198.90
$33,000$498.90
$36,000$720.00
$60,000$1,200.00
$100,000$2,000.00

Thresholds shown are the latest published (2025–26). Family thresholds are higher and depend on the number of children.

Questions

How much is the Medicare levy?

It is 2% of your taxable income, collected with your income tax.

Who pays a reduced Medicare levy?

Singles with taxable income up to $35,013 pay less (nothing up to $28,011), using the 2025–26 thresholds. Seniors and pensioners have higher thresholds ($44,268 – $55,335).

Is the Medicare levy surcharge the same thing?

No. The surcharge (1% to 1.5%) is an extra charge for higher earners without appropriate private hospital cover. This calculator covers the 2% levy only.

Can I be exempt?

Some people are exempt, such as certain foreign residents and people entitled to full free treatment through Defence or Veterans’ Affairs. You claim an exemption in your tax return.

Sources

Checked 26 September 2026. OneCalcs is independent and not affiliated with the ATO or Fair Work.

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