Medicare Levy Calculator 2026–27
Calculate your Medicare levy for the 2026–27 financial year. Includes low-income reductions for singles and families with dependents.
| Effective Rate | 0% |
| Reduction Applied | None |
| Family Threshold | — |
| Full 2% Would Be | $0 |
How the Medicare Levy Works in FY 2026–27
The Medicare levy funds Australia's universal healthcare system. For the 2026–27 financial year, the standard rate is 2% of your taxable income. However, low-income earners benefit from a reduction or full exemption.
Single Taxpayer Thresholds
| Taxable Income | Medicare Levy |
|---|---|
| $0 – $28,011 | Nil |
| $28,012 – $35,013 | 10% of income over $28,011 (shade-in) |
| $35,014+ | 2% of taxable income |
Family Threshold
Families have a higher threshold before Medicare levy applies. For 2025–26 (the latest thresholds published by the ATO — the 2026–27 figures are set at the Federal Budget), the base family threshold is $47,238, increased by $4,338 for each dependent child. The same 10% shade-in applies above this threshold until the standard 2% rate is reached.
A worked example
A single taxpayer on $90,000 with no dependants is well clear of the shade-in range, so the levy is the full 2.00% — $1,800 for the year, charged on top of income tax rather than inside it. Our income tax calculator shows the two together.
Medicare Levy vs Medicare Levy Surcharge
Do not confuse the Medicare levy (2%, paid by most taxpayers) with the Medicare levy surcharge (an additional 1–1.5% only applicable to higher-income earners without private hospital cover). Use our Medicare Levy Surcharge calculator to check whether the surcharge applies to you. If you don't hold private hospital cover, you may also pay the Medicare levy surcharge. Our Medicare levy surcharge calculator shows whether it applies to you, and our guide sets out the 2026–27 surcharge thresholds and rates from the ATO.