Useful next calculations
Rates and sources, 2025–26 and 2026–27
ATO Medicare levy surcharge income thresholds for 2025–26 and 2026–27 (singles) and the single Medicare levy low-income thresholds. The ATO had not published 2026–27 levy thresholds on 1 October 2026, so the 2025–26 figures are used.
| Band or figure | Rate |
|---|---|
| Surcharge tier 1 (2026–27) | $105,001 – $123,000 (1%) |
| Surcharge tier 2 (2026–27) | $123,001 – $164,000 (1.25%) |
| Surcharge tier 3 (2026–27) | $164,001+ (1.5%) |
| Levy low-income threshold (singles) | $28,011 (phase-in to $35,013) |
Source: ATO — Medicare levy surcharge income, thresholds and rates. Source checked for 2025–26 and 2026–27.
When to use this calculator
- Before accepting a pay change, bonus or contribution arrangement.
- When you want a simple take-home or conversion estimate before payroll or filing.
- When you need to convert between hourly, monthly and annual pay.
- When you want to compare two pay scenarios using the same assumptions.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Annual Income (A$) | A$80,000 |
| Income Year | 2026–27 (1 July 2026 to 30 June 2027) |
| Private Hospital Cover? | Yes — Private Health Cover |
For those figures the calculator returns:
- Medicare levy: A$1,600.00
- Medicare levy surcharge: A$0.00
- Total: A$1,600.00
Method & assumptions
This calculator computes the Australian Medicare Levy and Medicare Levy Surcharge for the 2026–27 income year (or 2025–26 if you choose it). The Medicare Levy of 2% applies to your taxable income above the single low-income threshold of $28,011 (with a phase-in zone up to $35,013). These are the 2025–26 ATO figures, the latest published when checked on 1 October 2026, and are used for both years. The Medicare Levy Surcharge of 1%, 1.25%, or 1.5% applies only if your income exceeds $105,000 for 2026–27 ($101,000 for 2025–26) as a single and you do not hold an ATO-compliant level of private hospital cover. Both amounts are added to your income tax liability and collected via PAYG withholding or your tax return. Family income thresholds and the treatment of dependants may affect the applicable MLS tier — this calculator models single taxpayer thresholds only. Always consult the ATO website or a registered tax agent for your specific circumstances.
Common mistakes
- Using an assumption that is not supported by a current local quote, bill, statement or official source.
- Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- Mixing monthly and annual inputs without converting them consistently.
- Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.