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

Yes, everyone pays the standard 2% Medicare levy regardless of private health insurance. However, private health insurance can help you avoid the Medicare levy surcharge if your income exceeds the thresholds.

If you were a foreign resident for part of the year or didn't have Medicare entitlement for the full year, you may qualify for a partial exemption. You'll need to complete the appropriate sections on your tax return.

The reduced Medicare levy gradually phases in. For singles, it's calculated as: 10% × (taxable income - $29,207). The levy phases in until you reach the full 2% rate at $36,509.
Calculate Your Medicare Levy

Use our tax calculator to see exactly how much Medicare levy you'll pay based on your income.

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