California SDI Tax 2026: Rate, Calculation & Paycheck Impact
The 2026 California State Disability Insurance (SDI) tax rate is 1.30%, an increase from 1.20% in 2025. With no wage cap in effect under SB 951, every dollar of California W-2 wages is subject to this 1.30% payroll deduction.
Key Takeaways
- The official California SDI tax rate for 2026 is 1.30% (compared to 1.20% in 2025).
- There is no taxable wage limit for California SDI in 2026; the tax applies to 100% of employee W-2 earnings.
- SDI is an employee-funded statutory tax that finances California Disability Insurance and Paid Family Leave (PFL).
- SDI is completely separate from California Personal Income Tax (PIT) and is not deductible on state tax returns.
- On a $100,000 annual salary, California SDI withholding equals exactly $1,300.00 per year ($50.00 biweekly).
Calculate your exact take-home pay with 2026 tax tables
Model pre-tax deductions, filing status, dependents, and state withholding.
What is California SDI and Who Pays It?
California State Disability Insurance (SDI) is a mandatory state-mandated wage replacement program administered by the California Employment Development Department (EDD). It provides partial wage replacement to eligible California workers who are unable to work due to a non-work-related illness, injury, pregnancy, or childbirth, as well as family caregiving through Paid Family Leave (PFL).
Unlike unemployment insurance, which is paid by employers, California SDI is 100% employee-funded. It is withheld automatically from every qualifying W-2 paycheck issued in California.
2026 Rate vs. 2025 Rate: Key Statutory Updates
Each December, the California EDD recalculates the statutory SDI contribution rate based on the financial health of the Disability Insurance Fund, projected benefit claims, and legislative mandates.
For calendar year 2026, the official SDI tax rate is 1.30%. This represents an increase from the 1.20% rate in effect for 2025.
| Tax Year | SDI Tax Rate | Taxable Wage Ceiling | Maximum Annual SDI Withholding |
|---|---|---|---|
| 2024 | 1.10% | No Limit (SB 951 eliminated cap) | Unlimited (1.10% of total wages) |
| 2025 | 1.20% | No Limit | Unlimited (1.20% of total wages) |
| 2026 | 1.30% | No Limit | Unlimited (1.30% of total wages) |
The Elimination of the Taxable Wage Ceiling (Senate Bill 951)
Prior to 2024, California capped the amount of wages subject to SDI taxes. For example, in 2023, the wage ceiling was $153,164, meaning any wages earned above that amount were exempt from SDI withholding.
Under California Senate Bill 951, signed into law to increase Paid Family Leave and Disability Insurance benefit replacement rates for lower- and middle-income workers, the wage ceiling was permanently repealed effective January 1, 2024. Consequently, in 2026, high earners pay 1.30% on all wages, with no upper limit.
How to Calculate California SDI on Your Paycheck
Calculating SDI is straightforward because it is a flat tax on gross subject wages without standard deduction offsets:
Formula: Paycheck Gross Wages × 0.0130 = SDI Withholding
- $1,500.00 biweekly paycheck × 1.30% = $19.50 SDI withheld
- $2,500.00 biweekly paycheck × 1.30% = $32.50 SDI withheld
- $3,846.15 biweekly paycheck ($100,000/yr) × 1.30% = $50.00 SDI withheld ($1,300/year)
- $7,692.31 biweekly paycheck ($200,000/yr) × 1.30% = $100.00 SDI withheld ($2,600/year)
Difference Between California SDI and California PIT
Many workers confuse SDI with California Personal Income Tax (PIT). They are governed by separate legal frameworks and serve distinct purposes:
California PIT is an income tax paid to the state general fund that depends on your annual taxable income, tax bracket, filing status, and deductions.
California SDI is an insurance premium paid directly into the Disability Insurance Fund. It does not depend on your filing status or itemized deductions. Regardless of whether you are single, married, or have five children, your SDI rate is exactly 1.30% of your earnings.
Official Citations & Regulatory Sources
PayCalcly tax calculations and guide methodologies are cross-referenced with official publication standards:
Related Calculators
Calculate your paycheck with accurate 2026 California SDI deductions.
See the impact of state disability and income taxes on your take-home pay.
Calculate net annual salary after all California and federal deductions.
Further Reading & Guides
California Paycheck Taxes Explained for 2026
California paycheck taxes consist of five distinct components: Federal Income Tax, Social Security, Medicare, California Personal Income Tax (PIT), and California State Disability Insurance (SDI at 1.30%). Explore how each tax is calculated under 2026 state and federal rules.
$75,000 Salary After Tax in California (2026)
On a $75,000 annual salary in California in 2026, a single employee with standard W-4 withholding takes home an estimated $57,397 per year, or $2,207.58 every two weeks, facing an effective total tax withholding rate of 23.47%.
$60,000 Salary After Tax in California (2026)
A $60,000 salary in California yields an estimated $47,638 in annual take-home pay for a single filer in 2026. On a biweekly schedule, you take home $1,832.23 per paycheck after an effective withholding rate of 20.60%.
How to Calculate Take-Home Pay From Your Salary
Take-home pay is the net cash remaining after subtracting pre-tax benefits, statutory payroll withholdings (federal income tax, Social Security, Medicare, and state taxes), and post-tax voluntary deductions from your gross pay. Learn the exact formula used by payroll systems.