Medicare levy calculator

What the result means

Most residents pay a 2% Medicare levy on taxable income. Below a low-income threshold the levy is nil; between thresholds it shades in at 10 cents in the dollar of the excess.

How it is calculated

Below lower: $0. Between: 10% × (income − lower). Above upper: 2% × income

• Thresholds: Published single low-income amounts for the active year.

The shade-in stops people crossing a cliff at the lower threshold.

Worked example

ATO-style $29,000 example

Taxable income $29,000, single thresholds.

Excess over lower threshold

Depends on the published lower amount

Levy

10% of that excess, not a full 2%

Once income is above the upper threshold, the levy is simply 2%.

Families and surcharge are different

Family thresholds and SAPTO thresholds are higher. The Medicare levy surcharge depends on income tiers and hospital cover. This page is the standard single levy only.

Questions