Australia Medicare Levy Calculator
Enter your taxable income and private hospital cover status to estimate your Medicare Levy and any surcharge.
Australia Medicare Levy Calculator
Estimate your Medicare Levy and any Medicare Levy Surcharge liability.
Most taxpayers pay a 2% Medicare Levy on their taxable income. Higher earners who do not hold private hospital cover also pay an additional Medicare Levy Surcharge, starting at 1% and rising to 1.5% of income at higher income tiers.
Example
- With the default values shown above, this calculator returns: Medicare Levy (2%) ≈ AUD 2,000.00; Surcharge Rate ≈ 1.00; Medicare Levy Surcharge ≈ AUD 1,000.00; Total Medicare Levy + Surcharge ≈ AUD 3,000.00.
Frequently Asked Questions
Who pays the Medicare Levy Surcharge?
Higher-income earners who do not hold an appropriate level of private hospital insurance pay the surcharge on top of the standard 2% Medicare Levy, as an incentive to take up private cover.
How can I avoid the surcharge?
Taking out an appropriate private hospital insurance policy for the full income year exempts you from the Medicare Levy Surcharge, regardless of your income.