Medicare levy reduction for low-income earners

The amount of Medicare levy you pay is reduced if your taxable income is below a certain threshold. In some cases, you may not have to pay the levy at all.

In 2021–22, you do not have to pay the Medicare levy if your taxable income is equal to or less than $23,365 ($36,925 for seniors and pensioners entitled to the seniors and pensioners tax offset (SAPTO)).

Your Medicare levy will be reduced if your taxable income is between $23,365 and $29,207 (between $36,925 and $46,157 for seniors and pensioners entitled to SAPTO). We work out the reduction for you when you lodge your tax return.

You may still qualify for a reduction based on your family taxable income.

If you do not qualify for a reduction in the Medicare levy, you may still qualify for a Medicare levy exemption.

You can use the Medicare levy calculator to work out your Medicare levy payable.