Australia private health insurance rebate: income tiers

This guide explains the Australian Government rebate on private health insurance, the income tiers and percentages for 1 July 2026 to 31 March 2027, and the two claiming methods.

Source: Australian Taxation Office, Income thresholds and rates for the private health insurance rebateChecked 7 October 2026·2 min read

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The rebate and the levy are separate Income tiers and percentages for 1 July 2026 to 31 March 2027 Rebate rates by age of the oldest person covered How to claim Medicare levy surcharge is separate

Rebate period: 1 July 2026 to 31 March 2027Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Singles: Base tier income threshold: $105,000 or less (under 65: 24.118%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Singles: Tier 1 income threshold: $105,001 to $123,000 (under 65: 16.079%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Singles: Tier 2 income threshold: $123,001 to $164,000 (under 65: 8.038%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Singles: Tier 3 income threshold: $164,001 or more (under 65: 0%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Families: Base tier income threshold: $210,000 or less (under 65: 24.118%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Families: Tier 1 income threshold: $210,001 to $246,000 (under 65: 16.079%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Families: Tier 2 income threshold: $246,001 to $328,000 (under 65: 8.038%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Families: Tier 3 income threshold: $328,001 or more (under 65: 0%)Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Age-based rate: under 65: Base tier 24.118%; Tier 1 16.079%; Tier 2 8.038%; Tier 3 0%Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Age-based rate: 65 to 69: Base tier 28.139%; Tier 1 20.098%; Tier 2 12.058%; Tier 3 0%Australian Taxation Office: Income thresholds and rates for the private health insurance rebate
Age-based rate: 70 or older: Base tier 32.158%; Tier 1 24.118%; Tier 2 16.079%; Tier 3 0%Australian Taxation Office: Income thresholds and rates for the private health insurance rebate

The rebate and the levy are separate

The Australian Government rebate on private health insurance helps cover the cost of private health insurance premiums. The rebate is separate from the Medicare levy and surcharge, which are different charges. Australian Taxation Office: Income thresholds and rates for the private health insurance rebate (opens in a new tab).

This guide does not calculate or determine personal entitlement.

Income tiers and percentages for 1 July 2026 to 31 March 2027

The Australian Taxation Office lists four income tiers. For singles, the Base tier is $105,000 or less (under 65: 24.118%); Tier 1 is $105,001 to $123,000 (under 65: 16.079%); Tier 2 is $123,001 to $164,000 (under 65: 8.038%); and Tier 3 is $164,001 or more (under 65: 0%). For families, the tiers double: Base tier is $210,000 or less (under 65: 24.118%); Tier 1 is $210,001 to $246,000 (under 65: 16.079%); Tier 2 is $246,001 to $328,000 (under 65: 8.038%); and Tier 3 is $328,001 or more (under 65: 0%). For families with children, the income thresholds are increased by $1,500 for each child after the first. The age-based rates for ages 65-69 and 70 or older are shown in the next section. Australian Taxation Office: Income thresholds and rates for the private health insurance rebate (opens in a new tab).

Rebate rates by age of the oldest person covered

The rebate entitlement is based on the age of the oldest person covered by the policy. Under 65: Base tier 24.118%, Tier 1 16.079%, Tier 2 8.038%, Tier 3 0%. Ages 65 to 69: Base tier 28.139%, Tier 1 20.098%, Tier 2 12.058%, Tier 3 0%. Ages 70 or older: Base tier 32.158%, Tier 1 24.118%, Tier 2 16.079%, Tier 3 0%. The rebate does not apply to the Lifetime Health Cover loading component of a hospital cover premium. Australian Taxation Office: Income thresholds and rates for the private health insurance rebate (opens in a new tab).

How to claim

The rebate can be received as a reduction of the premium through the health insurer or as a refundable tax offset in the annual tax return. Australian Taxation Office: Income thresholds and rates for the private health insurance rebate (opens in a new tab).

Medicare levy surcharge is separate

The Medicare levy surcharge is a separate charge that applies to individuals and families without appropriate private hospital insurance when income exceeds the relevant threshold. The medicare-levy-and-surcharge guide explains the levy and surcharge separately. Australian Taxation Office: Income thresholds and rates for the private health insurance rebate (opens in a new tab).

This general explanation provides no personal eligibility decision, rebate estimate or recommendation. A tax professional can confirm individual entitlement.