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Medicare Levy Calculator 2025–26

The Medicare levy is 2% of taxable income. In 2025–26 you pay none on $28,011 or less (single), it phases in at 10c per dollar up to $35,013, and families have higher thresholds. On $31,500 a single person pays $348.90.

Rates checked on Oct 29, 2026, ATO

1Your situationIncome year, residency, family, private health cover, study loan
Tax year
2Salary and wagesIncome statement: gross pay, allowances, tax withheld
3Work and other deductionsCar, travel, clothing, self-education, working from home, gifts, tax agent
4Investments and propertyInterest, dividends and franking credits, rent, capital gains
5Other income and income testsGovernment pensions, other income, fringe benefits, salary sacrifice

Your result

Estimated refund$323.10
Taxable income
$31,500.00
Total tax
$1,776.90
Average tax rate
5.64%
Tax on your next 1,000
26%
Income
1Salary and wages$31,500.00
Total income$31,500.00
Taxable income$31,500.00
Tax
Resident rate 16% on $13,300$2,128.00
Tax on taxable income$2,128.00
Low income tax offset−$700.00
M1Medicare levy$348.90
Tax and repayments$1,776.90
PAYG tax withheld−$2,100.00
Your refund$323.10

Estimate using ATO rates for the income year you picked. Your notice of assessment can differ, for example because of offsets, losses or income not covered here.

Markdown version for AI agents

Worked example (2025–26)

Australian resident, $31,500 of salary with $2,100 of tax withheld, no private hospital cover. The calculator above opens with these figures; change them to see your own estimate, laid out like a notice of assessment.

ItemAssessmentAmount
1Salary and wages$31,500.00
Total income$31,500.00
Taxable income$31,500.00
Resident rate 16% on $13,300$2,128.00
Tax on taxable income$2,128.00
Low income tax offset−$700.00
M1Medicare levy$348.90
Tax and repayments$1,776.90
PAYG tax withheld−$2,100.00
Your refund$323.10

Medicare levy by taxable income (2025–26)

Taxable incomeSingleCouple, 2 children, spouse earns $20,000
$25,000$0.00$0.00
$28,011$0.00$0.00
$30,000$198.90$0.00
$32,000$398.90$0.00
$35,013$700.20$0.00
$40,000$800.00$8.60
$60,000$1,200.00$1,200.00

Family threshold: $47,238 plus $4,338 for each dependent child (seniors and pensioners $61,623). Foreign residents do not pay the levy.

How your tax return is worked out

  1. Add up your income. Salary, wages and allowances from your income statement, government pensions, interest, dividends plus franking credits, net rent (a loss reduces your income) and your net capital gain.
  2. Take off deductions. Work-related car (88c a km up to 5,000 km), travel, clothing, self-education and other work expenses, working from home, gifts, tax agent fees and personal super contributions. Cents are dropped from taxable income.
  3. Work out tax on taxable income at resident rates (tax-free to $18,200), foreign resident rates (no tax-free threshold) or working holiday maker rates.
  4. Take off non-refundable offsets: the low income tax offset (up to $700) and the seniors and pensioners tax offset. They can reduce your income tax to nil but not below.
  5. Add the Medicare levy (2%, reduced on low incomes and for families), the Medicare levy surcharge if you had no private hospital cover and earn over the threshold, and any compulsory study loan repayment.
  6. Take off what you have already paid: PAYG tax withheld and your franking credits. A negative result is your refund; excess franking credits are refunded too.

Rates and thresholds

Item2025–262026–27
Resident rates (taxable income tops)0% to $18,200 / 16% to $45,000 / 30% to $135,000 / 37% to $190,000 / 45% above0% to $18,200 / 15% to $45,000 / 30% to $135,000 / 37% to $190,000 / 45% above
Low income tax offset$700 up to $37,500, nil from $66,667$700 up to $37,500, nil from $66,667
Medicare levy2%; none to $28,011 single, $47,238 family2%; none to $28,011 single, $47,238 family (provisional)
Medicare levy surcharge starts (single / family)$101,001 / $202,001$105,001 / $210,001
Seniors and pensioners tax offset (single)$2,230, reduced from $34,919$2,230, reduced from $36,034
Study loan repayments start$67,001$69,529
Capital gains discount (assets held 12 months+)50%50%
Car cents per km (max 5,000 km)88c91c
Work-from-home fixed rate70c an hour70c an hour (assumed)
Standard deduction for work expenses—$1,000
Lodge by (self-lodgers)31 Oct 202631 Oct 2027

Official source: Tax rates for Australian residents (ATO), Low income tax offset (ATO), Medicare levy reduction (ATO), Medicare levy surcharge thresholds (ATO), Study and training support loans thresholds (ATO), Seniors and pensioners tax offset (ATO), Working from home fixed rate (ATO), Standard deduction for work expenses (ATO), Individual tax return instructions 2026 (ATO). Rates checked on Oct 29, 2026.

Questions people ask

Who pays no Medicare levy?
People with taxable income at or below the low-income threshold, foreign residents, and people entitled to an exemption (for example certain visa holders who are not entitled to Medicare benefits).
How does the family reduction work?
If you have a spouse or dependent children and your combined income is at or below the family threshold, no levy is payable. Above it the reduction phases out at 8c for every dollar of extra family income.
Is the levy part of my tax withheld?
Yes. PAYG withholding tables include the Medicare levy, and it is shown as a separate line on your notice of assessment.
Is this the same as the ATO’s calculation?
It follows the same steps as your notice of assessment for the items listed. It does not cover business income, partnerships and trusts, foreign income, employment termination payments, lump sums in arrears, tax losses carried forward, the private health insurance rebate, zone and other offsets, or part-year residency.
Which income year should I choose?
2025–26 is 1 July 2025 to 30 June 2026; the return is due by 31 October 2026 if you lodge yourself. 2026–27 runs to 30 June 2027 and introduces the $1,000 standard deduction for work expenses.

Reviewed by Soufyane S.. Last updated Oct 29, 2026. How we check numbers

Estimates for information only, not tax, legal or financial advice. Check with an adviser or the official tax authority.