Australia Medicare Levy Surcharge (MLS) 2027 Calculator
Calculate your Australian Medicare Levy Surcharge for 2027 — 1% to 1.5% extra tax on income above tier thresholds, avoidable with private hospital cover.
Tier 1, 2, 3 Thresholds 2027
Single: Tier 1 (1.0%) > $97,000, Tier 2 (1.25%) > $113,000, Tier 3 (1.5%) > $151,000. Family: Tier 1 > $194,000, Tier 2 > $226,000, Tier 3 > $302,000. Each dependent child after first adds $1,500 to family thresholds.
Income for Surcharge Purposes
Not just taxable income — includes: taxable income + reportable fringe benefits + reportable employer super (RESC) + investment losses + foreign income + super contributions you've claimed as deduction. 'Income for surcharge purposes' is broader.
Avoid With Private Hospital Cover
Holding qualifying private hospital insurance for the FULL year exempts you from MLS — must cover full year, can't game by enrolling 1 day before EOFY. Excess (deductible) must be ≤ $750 single / $1,500 family.
MLS vs Premium — Which Saves More?
MLS at top tier = $2,250+/year for single $151k earner. Basic private hospital cover ~$1,300/year. Net saving ~$950 + avoid hospital queues. Tier 3 family pays ~$5,000+ MLS — basic family cover is $2,500. Always better to insure at Tier 2+.
Source: ato.gov.au MLS rates and thresholds 2026/27. Last updated: May 2026.
Frequently Asked Questions
What counts as private hospital cover?
Hospital cover (not just Extras like dental/optical) issued by a registered Australian health insurer with excess ≤ $750 single / $1,500 family. Must hold full financial year.
Can I claim MLS back if I buy mid-year?
No. The exemption applies only to days you held qualifying cover. Buying 1 July gives exemption from 1 July. Pro-rata MLS for the uncovered period.
What's the difference between Medicare Levy and MLS?
Medicare Levy = 2% on everyone (with some exemptions). MLS = additional 1-1.5% on high earners without private hospital cover. They are separate calculations.
Does Lifetime Health Cover (LHC) loading affect MLS?
No — LHC loading affects PREMIUM if you didn't buy cover by age 31, not MLS. Separate concept aimed at encouraging young people to insure.
Is my data private?
Yes. All calculations run in your browser. Inputs are never sent, stored, or shared.