Medicare Levy 2024-25
The Medicare levy helps fund Australia's public health system. Learn how this 2% tax is calculated and who pays it.
What is the Medicare Levy?
The Medicare levy is a 2% tax on your taxable income that helps fund Medicare, Australia's universal health care system. Most Australian residents pay this levy as part of their income tax.
Source: ATO Medicare Levy Information
Current Rate
2%
of taxable income
Low Income Threshold
$29,207
2024-25 financial year
How Much You Pay
Annual Income | Medicare Levy | Per Week | Per Month |
---|---|---|---|
$30,000 | $600 | $11.54 | $50 |
$50,000 | $1,000 | $19.23 | $83 |
$75,000 | $1,500 | $28.85 | $125 |
$100,000 | $2,000 | $38.46 | $167 |
$150,000 | $3,000 | $57.69 | $250 |
Low Income Thresholds 2024-25
You may pay a reduced Medicare levy or no Medicare levy if your income is below certain thresholds:
Source: ATO Medicare Levy Thresholds 2024-25
Single Person
- Below $29,207: No Medicare levy
- $29,207 - $36,509: Reduced levy
- Above $36,509: Full 2% levy
Families
- Below $49,304: No Medicare levy
- Plus $4,529 for each dependent child
- Reduced levy applies in phase-out range
Medicare Levy Exemptions
You may be exempt from the Medicare levy if you:
Full Exemptions
- Have a Medicare levy exemption certificate
- Are a foreign resident (non-resident for tax purposes)
- Have no Medicare entitlement and aren't covered by reciprocal agreement
- Are a Norfolk Island resident (in some cases)
Partial Exemptions
- Held a Medicare levy exemption certificate for part of the year
- Were a foreign resident for part of the year
- Had different Medicare entitlements during the year
Medicare Levy Surcharge
High-income earners without private health insurance may pay an additional Medicare levy surcharge:
Source: ATO Medicare Levy Surcharge Information
Income Range (Singles) | Income Range (Families) | Surcharge Rate |
---|---|---|
$97,000 - $113,000 | $194,000 - $226,000 | 1.0% |
$113,001 - $151,000 | $226,001 - $302,000 | 1.25% |
$151,001+ | $302,001+ | 1.5% |
Avoid the Surcharge
You can avoid the Medicare levy surcharge by having appropriate private hospital insurance. The surcharge is in addition to the standard 2% Medicare levy.
Common Questions
Calculate Your Medicare Levy
Use our tax calculator to see exactly how much Medicare levy you'll pay based on your income.
Calculate My Tax