---
title: "Medicare levy calculator and low-income reductions | TaxCalcTool"
description: "See how the standard Medicare levy and low income reduction fit into an Australian salary estimate, and identify situations outside this calculator."
canonical: "https://taxcalctool.com/australia/medicare-levy/"
---

Canonical page: https://taxcalctool.com/australia/medicare-levy/

> This is the readable version of the published page. Use the HTML page for interactive controls. Any displayed calculation is the page’s default example, not a personal estimate. The visible source status applies to this build; consult https://taxcalctool.com/source-health.json for the latest check.

[Home](https://taxcalctool.com/)  / [Australia](https://taxcalctool.com/australia/)  / Medicare levy calculator and low-income reductions

# Medicare levy calculator and low-income reductions

Estimate the Medicare levy for a single resident with no dependants. The starting example shows a lower salary so you can see the reduction, alongside income tax.

[Use the calculator](https://taxcalctool.com/australia/medicare-levy/#calculator) [How it works](https://taxcalctool.com/australia/medicare-levy/#explanation) [Worked example](https://taxcalctool.com/australia/medicare-levy/#worked-example)

AUAustralia · Resident employee

All amounts in AUD

Annual salary before tax

$

Default example input: 32,000

Excludes employer superannuation.

Financial year1 July to 30 June

Checking official sources Annual estimate. Your payslip may differ.

[View official sources ↗](https://taxcalctool.com/sources/)

For single, full-year residents aged 18–66 with no dependants, salary only, and no itemised deductions. [Check your situation](https://taxcalctool.com/supported-scenarios/)

## A reduction changes the levy at lower incomes

The standard individual rules use a lower threshold and a phase-in range before the ordinary levy applies in full. This is why applying the headline levy percentage to every salary is not a complete calculation.

The example includes the reduction for the supported single-person profile. It uses the selected ruleset, including its stated verification and validity status.

[Medicare levy surcharge and hospital cover](https://taxcalctool.com/australia/medicare-levy-surcharge/)

## Exemptions and family reductions need more information

Income-based reductions and exemptions are different questions. Family circumstances, eligibility for seniors and pensioners tax offsets, and exemption categories can change the outcome.

This calculator covers a single employee aged 18–66 with no dependants and no Medicare exemption. It does not decide whether you qualify for an exemption or a family reduction.

## Hospital cover is a separate setting

Appropriate private hospital cover can affect the Medicare levy surcharge. Holding cover does not by itself remove the standard Medicare levy.

If you change the cover setting, compare the surcharge row. The standard levy still follows its own income rules within this calculator’s profile.

## Common questions

## Read the official guidance

- [ATO: Medicare levy reductions for low income earners](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners)
- [ATO: Paying the Medicare levy surcharge](https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/paying-the-medicare-levy-surcharge)
- [ATO: Tax calculation and non-refundable offsets](https://www.ato.gov.au/api/public/content/0-d300e446-ea4e-4046-a021-0dd9072e26ab)

For exact rule sections and effective dates, see the [source register](https://taxcalctool.com/sources/) .

## Your next question

- [Medicare levy surcharge calculator: single residents](https://taxcalctool.com/australia/medicare-levy-surcharge/)
- [Low income tax offset calculator (LITO)](https://taxcalctool.com/australia/low-income-tax-offset/)
- [Who can use this Australian tax calculator?](https://taxcalctool.com/supported-scenarios/)

[All Australian tax tools and guides](https://taxcalctool.com/australia/)