# Medicare Levy Calculator 2025–26

> Work out your 2025–26 Medicare levy: 2% of taxable income, the low-income and family thresholds, and the reduction for seniors and pensioners.

URL: https://paycheck-math.com/au/medicare-levy-calculator/  
Breadcrumbs: Home > Australia > Medicare Levy Calculator  
Language: en-AU  
Rates checked: 2026-10-29  

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**.

## Result with default inputs

Inputs: year=2025-26, residency=resident, spouse=false, spouse_income=0, children=0, private_cover=false, help_debt=false, sapto=none, salary=31500, allowances=0, tax_withheld=2100, car_km=0, d_travel=0, d_clothing=0, d_self_ed=0, wfh_hours=0, d_other_work=0, d_union=0, d_gifts=0, d_tax_affairs=0, d_super=0, interest=0, div_unfranked=0, div_franked=0, franking_credits=0, d_invest=0, rent_income=0, rent_expenses=0, cg_long=0, cg_short=0, cg_losses=0, gov_pension=0, other_income=0, rfb=0, resc=0

**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%

| Line | Item | Amount |
| --- | --- | --- |
|  | **Income** |  |
| 1 | Salary 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 |
| M1 | Medicare 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._


To compute other inputs, call the JSON API: `https://paycheck-math.com/api/v1/calculate?path=%2Fau%2Fmedicare-levy-calculator%2F&year=2025-26&residency=resident&spouse=0` or open the page URL with the same query parameters.

## 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.

| Item | Assessment | Amount |
| --- | --- | --- |
| 1 | Salary 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 |
| M1 | Medicare 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 income | Single | Couple, 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

| Item | 2025–26 | 2026–27 |
| --- | --- | --- |
| Resident rates (taxable income tops) | 0% to $18,200 / 16% to $45,000 / 30% to $135,000 / 37% to $190,000 / 45% above | 0% 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 levy | 2%; none to $28,011 single, $47,238 family | 2%; 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) | 88c | 91c |
| Work-from-home fixed rate | 70c an hour | 70c an hour (assumed) |
| Standard deduction for work expenses | — | $1,000 |
| Lodge by (self-lodgers) | 31 Oct 2026 | 31 Oct 2027 |

Official source: [Tax rates for Australian residents (ATO)](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents), [Low income tax offset (ATO)](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/low-income-tax-offset), [Medicare levy reduction (ATO)](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners), [Medicare levy surcharge thresholds (ATO)](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates), [Study and training support loans thresholds (ATO)](https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds), [Seniors and pensioners tax offset (ATO)](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/seniors-and-pensioners-tax-offset), [Working from home fixed rate (ATO)](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method), [Standard deduction for work expenses (ATO)](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/standard-deduction-for-work-related-expenses), [Individual tax return instructions 2026 (ATO)](https://www.ato.gov.au/forms-and-instructions/individual-tax-return-2026-instructions). 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.

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