Medicare Levy Surcharge Calculator
Find out if you need to pay the MLS and whether private hospital cover would save you money. Instant calculations for the 2025-26 financial year.
How the Medicare Levy Surcharge Works in 2025-26 ▾
The Medicare Levy Surcharge (MLS) is an additional tax on top of the 2% Medicare Levy that applies to higher-income Australians who don't hold qualifying private hospital cover. Unlike the standard Medicare Levy, the MLS is designed to encourage higher earners to take out private health insurance, reducing demand on the public hospital system.
For the 2025-26 financial year, the MLS applies at rates of 1%, 1.25%, or 1.5% depending on your income tier. Singles earning above $101,000 and families earning above $202,000 may be liable. These thresholds were frozen from 2014-15 through 2024-25 but have been increased for 2025-26.
The key decision for most affected taxpayers is whether to pay the MLS or buy private hospital cover. At higher income tiers, the surcharge can exceed $3,000 per year — significantly more than the cost of a basic hospital cover policy (before PHI rebate). Our calculator compares both options and gives you a personalised recommendation.
MLS Liability by Income
Estimated annual MLS for single taxpayers without private hospital cover in 2025-26.
$95,000
Below threshold — no MLS payable
$105,000
- Annual MLS
- $1,050
- Rate
- 1%
- Cover cheaper?
- No
$118,000
- Annual MLS
- $1,180
- Rate
- 1%
- Cover cheaper?
- Yes
$130,000
- Annual MLS
- $1,625
- Rate
- 1.25%
- Cover cheaper?
- Yes
$158,000
- Annual MLS
- $1,975
- Rate
- 1.25%
- Cover cheaper?
- Yes
$200,000
- Annual MLS
- $3,000
- Rate
- 1.5%
- Cover cheaper?
- Yes
* Based on ATO 2025-26 MLS rates. Singles thresholds only. Use the calculator above for your personalised figure including family status and age bracket.
Learn More
Want to understand the detail behind your MLS liability? Our guides cover everything you need to know: