What income triggers the Medicare Levy Surcharge in 2026-27?
For 2026-27, the Medicare Levy Surcharge starts above $105,000 for a single and above $210,000 for a family. The family threshold rises by $1,500 for each dependent child after the first. The rate steps up through three tiers, from 1% to 1.25% to 1.5% of income, the higher your income goes.
The 2026-27 tiers for singles
Base tier is income at or below $105,000, with no surcharge. Tier 1 is $105,001 to $123,000 at 1%. Tier 2 is $123,001 to $164,000 at 1.25%. Tier 3 is above $164,000 at 1.5%.
The 2026-27 tiers for families
Base tier is at or below $210,000. Tier 1 is $210,001 to $246,000. Tier 2 is $246,001 to $328,000. Tier 3 is above $328,000. Add $1,500 to each threshold for every dependent child after the first.
A worked example
A family with two children on a combined $250,000 has a threshold lifted by $1,500 to $211,500 at the base, so they sit in Tier 2. Their surcharge is 1.25% of $250,000, or $3,125 a year, unless they hold complying hospital cover.
The numbers, with sources
- Single base threshold: $105,000.ato.gov.au
- Family base threshold: $210,000.ato.gov.au
- Per child after the first: $1,500.ato.gov.au
General information only, not personal or financial advice. Full method on the methodology page.