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Free toolLast reviewed 30 October 2026 · Rates: ATO, FY 2026–27

Medicare levy calculator (2026–27)

Short answer
On a A$85,000 salary the Medicare levy is about A$1,700 a year (A$65.38 a fortnight) in 2026–27, 2% of A$85,000 taxable income. The calculator applies the 2% Medicare levy and the low-income reduction for a single person, using ATO thresholds, and shows the levy next to your income tax and take-home pay. Families, SAPTO and the surcharge are not calculated here. Enter your own pay below.

Work out your levy

Your pay

A$85,000 a year before tax.

Super
More options

That job uses your tax-free threshold, so this one is taxed at your top rate.

A$0

Move the slider to see what a pay rise adds after tax.

Medicare levy per yearA$1,700.00

Your Medicare levy

Show per
Medicare levy per year
A$1,700.00
Average tax rate 20.9% · Marginal rate 32%
Pay before tax A$85,000.00Super, paid on top
79.2% you keep20.9% tax and Medicare
Where your pay goes, per year
Pay before taxA$85,000.00
Income tax (after offsets)18.9%−A$16,020.00
Medicare levy2%−A$1,700.00
HELP repaymentOffA$0.00
Take-home pay79.2%A$67,280.00
Employer super (12%, paid on top)A$10,200.00

Single person: no levy up to A$28,011 of taxable income, then 10% of the amount over, and the full 2% above A$35,013.

Provisional2026–27 Medicare thresholds not yet published by the ATO; using 2025–26 values.

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Your Medicare levy and the low-income reduction

A$1,700a year, single person

Taxable income, A$ thousands

Your taxable income is above A$35,013, so you pay the full 2% levy.

Show as a table
Medicare levy by taxable income, single person, 2026–27
Taxable incomeMedicare levy
Up to A$28,011Nil
A$28,012 – A$35,01310c for each A$1 over A$28,011
Over A$35,0132% of all your taxable income

Estimate only, not tax advice. Assumes this is your only income (unless you enter another job), you are single with no dependants, and you have no other deductions or offsets. Includes the Low Income Tax Offset and the Medicare levy low-income reduction. Does not include the Medicare levy surcharge, SAPTO, salary sacrifice or fringe benefits. For those, or for a family, use the ATO income tax estimator. The ATO Medicare levy calculator covers families, SAPTO and the surcharge: ATO Medicare levy calculator.

How we worked this outFY 2026–27, figures for the year
  1. Pay from this job A$85,000.00 a year, super not included. Employer super 12% = A$10,200.00, paid on top.

    Source: ATO super guarantee (updated 17 April 2026) · FY 2026–27 · checked 2 Nov 2026

  2. Standard deduction not applied, so taxable income is A$85,000.00.

    Source: ATO standard deduction for work-related expenses (updated 14 September 2026); Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Schedule 4 (assented 26 June 2026) · FY 2026–27 · checked 2 Nov 2026

  3. Income tax: A$4,020 + 30% × (85,000 − 45,000) = A$16,020.00.

    Source: ATO tax rates - Australian residents (updated 13 August 2026) · FY 2026–27 · checked 2 Nov 2026

  4. Low Income Tax Offset: A$0.00.

    Source: ATO low income tax offset (updated 8 June 2026) · FY 2026–27 · checked 2 Nov 2026

  5. Medicare levy: 2% of taxable income, reduced on low incomes = A$1,700.00.

    Source: ATO Medicare levy reduction for low-income earners (updated 30 June 2026, 2025-26 values) · FY 2026–27 · checked 2 Nov 2026

  6. Take-home: A$85,000.00 − A$16,020.00 + A$0.00 − A$1,700.00 − A$0.00 = A$67,280.00 a year. Each period is the year divided by 52, 26 or 12 and rounded to the cent. Marginal rate 32% is tax plus Medicare on your next dollar; it leaves out study loan repayments.

Your employer withholds tax each pay using ATO tax tables, so a payslip can differ by a few dollars. We work out tax for the whole year and divide it; any difference is settled when you lodge your return.

Medicare levy low-income thresholds

The levy is 2% of your taxable income. If your income is low you pay less, or none. The table shows the thresholds for a single person with no dependants.

Medicare levy low-income thresholds, single person, 2026–27
Taxable incomeMedicare levy
Up to A$28,011Nil
A$28,012 – A$35,01310c for each A$1 over A$28,011
Over A$35,0132% of all your taxable income

The ATO has not yet published the 2026–27 thresholds. The table and the calculator use the 2025–26 values until it does.

Source: ATO · FY 2026–27 · checked 2 Nov 2026

What this calculator does not cover

Families, seniors and pensioners (SAPTO) and the Medicare levy surcharge are not calculated here. The thresholds are different and depend on your family and on private hospital cover. Use the ATO Medicare levy calculator for those.

The levy is worked out on taxable income for the whole year. The standard deduction is left out unless you tick it, so your figure can differ if you have other deductions.

Common questions

The Medicare levy is 2% of your taxable income. People on low incomes pay less, or none.

Estimates only. This page gives general information, not tax advice; check your situation with the ATO or a registered tax agent.

Earning on an ABN too? Keep the books in one place

The levy is worked out on your whole taxable income, including ABN profit. Kestly keeps your invoices, receipts and trips ready for tax time.

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