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.

Ad Space

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.