Estimate the Medicare Levy Surcharge you would pay without appropriate private hospital cover, using your income and surcharge rate.
The surcharge is calculated on your taxable income plus reportable fringe benefits (and any amount on which family trust distribution tax was paid). Which rate applies depends on your income for surcharge purposes, a wider measure that also adds items such as net investment losses and reportable super contributions. Enter the amount it is charged on and the rate for your tier.
Thresholds and rates (privatehealth.gov.au):
| Rate | 2025–26 singles | 2025–26 families | 2026–27 singles | 2026–27 families |
|---|---|---|---|---|
| 0% | up to $101,000 | up to $202,000 | up to $105,000 | up to $210,000 |
| 1% | $101,001–118,000 | $202,001–236,000 | $105,001–123,000 | $210,001–246,000 |
| 1.25% | $118,001–158,000 | $236,001–316,000 | $123,001–164,000 | $246,001–328,000 |
| 1.5% | $158,001+ | $316,001+ | $164,001+ | $328,001+ |
Family thresholds rise by $1,500 for each dependent child after the first.
Worked example (illustrative). A single person with $130,000 taxable income in 2026–27 falls in the 1.25% band: $130,000 × 1.25% = $1,625. If they hold appropriate hospital cover for only the last 146 days of the year, they pay the surcharge for the 219 days without it: $1,625 × 219 ÷ 365 = $975.
Limits. The surcharge is avoided only by hospital cover with an excess of no more than $750 (singles) or $1,500 (couples and families); extras cover alone does not count. Couples and families pay on each person's own income. Your tax return is the final calculation; confirm with the ATO or a registered tax agent.
Worked Examples and Checklists
Side-by-side arithmetic for singles and families at each surcharge tier, including the rebate, LHC loading and excess risk, to see when cheap hospital cover wins.
Costs, Tiers and 2026 Rules
MLS income tiers and rates for singles and families, what counts as income, which hospital cover avoids it, part-year cover and how couples are assessed.
Mistakes, Disputes and Official Sources
Lifetime Health Cover base days for new migrants and returning expats, the one-year window, time overseas and suspended cover, Medicare eligibility and the surcharge.
