Quick Answer
California's SDI rate for 2026 is 0.9% of wages up to $176,069 (the wage cap). For most workers, this means a maximum annual deduction of $1,584.62, or about $61 per biweekly paycheck for high earners.
Best Answer
Sarah Chen, Payroll Tax Analyst
Workers who want to understand how much SDI costs and how it's calculated on their paycheck
How much is California SDI in 2026?
California's State Disability Insurance (SDI) rate for 2026 is 0.9% of your wages, up to a maximum wage base of $176,069. This means you'll pay SDI on every dollar you earn up to that cap, but nothing beyond it.
The maximum you can pay in SDI for 2026 is $1,584.62 ($176,069 × 0.9%). For most workers earning under the cap, you'll see this deducted from every paycheck throughout the year.
Example: SDI deduction by salary level
Here's how SDI affects different income levels in California:
How SDI works on your paycheck
SDI is deducted from your gross pay before federal income taxes are calculated, but it's not pre-tax like 401(k) contributions. You pay SDI on the same wages subject to Social Security tax.
Key factors that affect your SDI:
Example calculation: $75,000 salary
If you earn $75,000 annually in California:
What SDI covers
Your SDI contributions provide short-term disability benefits if you can't work due to illness or injury (not work-related), pregnancy, or bonding with a new child. Benefits typically replace about 60-70% of your wages for up to 52 weeks.
What you should do
Check your pay stub to verify the SDI deduction matches 0.9% of your gross wages. If you're a high earner, track when you hit the $176,069 wage cap — SDI deductions should stop at that point. Use our paycheck calculator to see exactly how SDI affects your take-home pay.
Key takeaway: California SDI costs 0.9% of wages up to $176,069 in 2026, with a maximum annual cost of $1,584.62 for high earners.
Key Takeaway: California SDI costs 0.9% of wages up to $176,069 in 2026, with a maximum annual cost of $1,584.62 for high earners.
SDI deduction amounts by salary level for 2026
| Annual Salary | Annual SDI | Monthly SDI | Biweekly SDI |
|---|---|---|---|
| $30,000 | $270 | $22.50 | $10.38 |
| $50,000 | $450 | $37.50 | $17.31 |
| $75,000 | $675 | $56.25 | $25.96 |
| $100,000 | $900 | $75.00 | $34.62 |
| $176,069+ | $1,584.62 | $132.05 | $60.94 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
New workers who are seeing SDI on their first California paycheck and want to understand what it is
What is this SDI deduction on my paycheck?
If this is your first job in California, you might be wondering what "SDI" or "CA SDI" means on your pay stub. SDI stands for State Disability Insurance, and it's automatically deducted from almost every California employee's paycheck.
How much will I pay as a new worker?
For 2026, you'll pay 0.9% of your gross wages in SDI. On an entry-level salary, this is usually a small amount:
Why am I paying this?
SDI is like insurance — you pay a little each paycheck so you're covered if you get sick, injured (outside of work), or need time off for pregnancy/bonding with a new baby. It provides partial income replacement when you can't work.
Is this the same as Social Security Disability?
No, this is different from federal Social Security Disability. California SDI is:
Can I opt out?
Most employees cannot opt out of SDI. However, some specific groups are exempt, like certain government employees or people covered by approved private disability plans.
Key takeaway: SDI is mandatory insurance costing 0.9% of your wages — think of it as protection that costs most entry-level workers $10-20 per paycheck.
Key Takeaway: SDI is mandatory insurance costing 0.9% of your wages — think of it as protection that costs most entry-level workers $10-20 per paycheck.
Sources
- California EDD SDI Information — Official California Employment Development Department disability insurance rates and information
- IRS Publication 15 — Employer's Tax Guide including state tax withholding requirements
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.