California State Disability Insurance (SDI) Rate 2026 Explained
Updated November 2026 · 4 min read · Source: California EDD
2025 vs. 2026 CA SDI Rates
The California Employment Development Department (EDD) adjusts the SDI rate annually on January 1st to fund short-term disability insurance and Paid Family Leave (PFL) benefits:
| Calendar Year | SDI Rate | Taxable Wage Cap |
|---|---|---|
| 2025 | 1.2% | No Cap (Unlimited) |
| 2026 | 1.3% | No Cap (Unlimited) |
What Changed Under SB 951?
Prior to 2024, California SDI had an annual wage ceiling — once your year-to-date wages crossed that cap, SDI deductions stopped for the rest of the year. Senate Bill 951 permanently eliminated the taxable wage limit to expand Paid Family Leave and disability wage-replacement benefits.
As a result, CA SDI now functions like Medicare: a flat percentage applied to every W-2 dollar you earn, with no maximum annual withholding.
How Much SDI Comes Out of Your Paycheck in 2026?
Important payroll detail: 401(k) contributions do not reduce SDI wages. SDI is withheld from your gross W-2 wages before traditional 401(k) deferrals.
| Annual Gross Salary | Annual SDI (2026 @ 1.3%) | Biweekly Paycheck SDI |
|---|---|---|
| $75,000 | $975.00 | $37.50 |
| $100,000 | $1,300.00 | $50.00 |
| $150,000 | $1,950.00 | $75.00 |
| $250,000 | $3,250.00 | $125.00 |
See Your Full California Paycheck Breakdown
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