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RESIDENTS
The Medicare levy is not a flat 2% at every income.
Below the single threshold it is zero. Across a shade-in band it is 10 cents per dollar over the threshold. After that it is 2% of taxable income.
For 2026–27 the single threshold used here is $28,011. At $28,011 or below, the levy is $0. Between $28,011 and $35,014 the levy is 10% of the excess over $28,011, which is the shade-in that reaches a full 2% at the top of that range. Above that, the levy is 2% of taxable income. On $90,000 that is $1,800, and it is on top of income tax.
Families, seniors, and the Medicare levy surcharge are different tests. The surcharge, for people over an income threshold who do not hold private patient hospital cover, is 1% to 1.5% and is not in the calculator. If that is your situation, add it yourself. Do not assume the 2% line is the whole Medicare story.
Foreign residents do not pay the Medicare levy. This page is for residents.
Questions
Is the shade-in 10% of all my income?
No. It is 10% of the amount over $28,011, and only inside the shade-in range. It is a phase-in of the 2% levy, not a 10% tax.
Does private health insurance remove the 2%?
No. Appropriate hospital cover can remove the surcharge. The 2% levy still applies above the low-income threshold.