AU Pay & Tax

Medicare levy

Medicare levy explained

The calculator applies a simple 2% Medicare levy to taxable income when the tax-free threshold is claimed.

Key points

  • Standard rate is 2% of taxable income.
  • Low-income reductions and exemptions are not modelled here.
  • We only apply the levy when the tax-free threshold toggle is on.

Where to calculate it

Use the main calculator to see Medicare alongside PAYG withholding.

Go to the Australian Pay & Tax Calculator