Medicare Levy Surcharge Calculator 2024–25
Find out whether you have to pay the Medicare Levy Surcharge (MLS) and how much it will cost you. Enter your income, family status and whether you hold private hospital cover to see your surcharge rate and total Medicare obligation for the 2024–25 year.
Your Details
Your income for MLS purposes (taxable income plus reportable fringe benefits)
Couples & families use the family income thresholds
You are liable for the MLS at 1.25%
2024–25 thresholds
Taking out an appropriate private hospital policy would remove the $1,500 surcharge. Compare that against the cost of a basic hospital policy to decide what is cheaper for you.
Estimates for informational purposes only and based on ATO published 2024–25 MLS thresholds. The standard 2% Medicare Levy shown ignores low-income exemptions and reductions. Not tax advice — consult a registered tax agent for your situation.
What is the Medicare Levy Surcharge?
The Medicare Levy Surcharge (MLS) is an additional charge levied on Australian taxpayers who earn above a set income threshold and do not hold an appropriate level of private hospital cover. It sits on top of the standard 2% Medicare Levy and ranges from 1% to 1.5% of your income for surcharge purposes. The MLS exists to encourage higher-income earners to take out private hospital insurance and ease demand on the public health system. Because the surcharge is calculated on your whole income — not just the amount above the threshold — even a small pay rise can trigger a charge of several hundred or several thousand dollars, which is often more than the cost of a basic hospital policy.
2024–25 MLS Thresholds & Rates
| Tier | Single income | Family income | MLS rate |
|---|---|---|---|
| No surcharge | ≤ $93,000 | ≤ $186,000 | 0% |
| Tier 1 | $93,001 – $108,000 | $186,001 – $216,000 | 1.0% |
| Tier 2 | $108,001 – $144,000 | $216,001 – $288,000 | 1.25% |
| Tier 3 | $144,001+ | $288,001+ | 1.5% |
The family income threshold increases by $1,500 for each dependent child after the first. Couples and families are assessed on their combined income for surcharge purposes.
How to Avoid the Medicare Levy Surcharge
The simplest way to avoid the MLS is to hold an appropriate private hospital insurance policy for the full income year. To count, the policy must be registered hospital cover (not extras-only) with an excess no higher than $750 for singles or $1,500 for couples and families. If you hold cover for only part of the year, the surcharge is pro-rated for the days you were uninsured. Before buying a policy purely to dodge the surcharge, compare the annual premium of a basic hospital policy against the surcharge this calculator shows — in many cases the policy is cheaper, and you gain hospital cover as well. You can also look at related decisions with our salary packaging calculator and check your overall obligations on the Medicare Levy calculator.
Medicare Levy vs Medicare Levy Surcharge
It is easy to confuse the two charges, but they are separate. The Medicare Levy is a flat 2% of taxable income paid by most taxpayers to help fund Medicare, with reductions and exemptions for low-income earners. The Medicare Levy Surcharge is an extra 1%–1.5% that applies only to higher-income earners without private hospital cover. Everyone liable for the surcharge also pays the levy, but most people who pay the levy never pay the surcharge. This calculator shows both so you can see your total Medicare obligation in one place. To estimate your full tax position, try our income tax calculator.
Frequently Asked Questions
What is the Medicare Levy Surcharge for 2024-25?+
The MLS is an extra 1% to 1.5% of income on top of the standard 2% Medicare Levy. It applies to taxpayers earning above the threshold who do not hold appropriate private hospital cover. For 2024-25 the no-surcharge threshold is $93,000 (single) and $186,000 (family).
How do I avoid the Medicare Levy Surcharge?+
Hold an appropriate private hospital policy for the full year — registered hospital cover with an excess of $750 or less (singles) or $1,500 or less (couples/families). Extras-only cover does not exempt you.
What is the difference between the Medicare Levy and the surcharge?+
The Medicare Levy is a flat 2% most taxpayers pay. The surcharge is an additional 1%–1.5% only for higher-income earners without private hospital cover. Anyone liable for the surcharge also pays the levy.
Is the MLS calculated on whole income or just the amount over the threshold?+
On your entire income for surcharge purposes, not just the portion above the threshold. Once you cross a tier boundary, the rate applies to your whole income — which is why private cover often costs less than the surcharge.