Updated for 2026-27

Medicare Levy Calculator

See the 2% Medicare levy on your income for the 2026-27 financial year, plus the low-income reduction and the Medicare Levy Surcharge for higher earners.

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Australian Take-Home Pay Calculator 2026-27

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Disclaimer: This calculator provides general estimates, not personal tax or financial advice. Figures use published ATO rates for 2026-27 and may not match your exact situation, offsets or deductions. Do not act on these results alone. For official guidance, visit the ATO, or speak to a registered tax agent.

For most Australian residents the Medicare levy is 2% of taxable income. On a $90,000 salary that is $1,800 for the year. Low-income earners pay a reduced levy, and foreign residents and working holiday makers pay none.

Medicare Levy Thresholds 2026-27

The 2% levy phases in for low-income single earners. Foreign residents and working holiday makers pay nil.

Taxable income (single)Levy rateMedicare levy
$0 – $28,0110%Nil (below low-income threshold)
$28,012 – $35,013Phase-in10c per $1 over $28,011
$35,014 +2%Full 2% of taxable income
Foreign residents and working holiday makers0%Nil (do not pay the Medicare levy)

The low-income thresholds shown ($28,011 and $35,013) are the 2025-26 figures carried forward, because the ATO has not yet published the 2026-27 low-income thresholds. Source: Australian Taxation Office.

Medicare Levy vs Medicare Levy Surcharge

These are two separate charges. The Medicare levy is 2% of taxable income and applies to most Australian residents. The Medicare Levy Surcharge (MLS) is an extra charge only for higher earners who do not hold private hospital cover, which you can check with the Medicare levy surcharge calculator or read about in MLS explained.

Worked example, $90,000 salary:

The Medicare levy is 2% of $90,000, which is $1,800 for the year. This is on top of your income tax. Foreign residents and working holiday makers do not pay the levy at all, and the full rules sit in Medicare levy explained.

The Medicare Levy Surcharge starts above $105,000 for singles and $210,000 for families in 2026-27, and is between 1% and 1.5% depending on your income tier. Check your exact tier, as holding private hospital cover avoids it.

Use the calculator above or see your full income tax for 2026-27.

Medicare Levy on a $90,000 Salary

Medicare levy (2%)$1,800
Levy rate2%
Low-income earnersReduced or nil
Foreign residents and WHMNil

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Medicare Levy FAQ

Common questions about the Australian Medicare levy.

The Medicare levy is 2% of your taxable income for most Australian residents. On a $90,000 salary that is $1,800 for the year. Lower earners pay a reduced levy or none at all. Enter your own income above to see your figure.
Foreign residents and working holiday makers do not pay the Medicare levy. Low-income earners also pay no levy at or below the low-income threshold ($28,011 for singles), with the levy phasing in at 10c per $1 up to $35,013, above which the full 2% applies.
The Medicare Levy Surcharge (MLS) is an extra charge for higher earners who do not hold private hospital cover. For 2026-27 it starts above $105,000 for singles and $210,000 for families, and is between 1% and 1.5% depending on your income tier. Check your exact tier to confirm your rate.
Yes. Holding an appropriate level of private hospital cover means you do not pay the Medicare Levy Surcharge, even if your income is above the threshold. The standard 2% Medicare levy still applies to most residents regardless of cover.

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