California SDI Tax Rate 2025: Who Pays and How Much

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H1

California SDI Tax Rate: Who Pays and How Much

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ANSWER SECTION

The California State Disability Insurance (SDI) tax rate is 1.1% of wages in 2025, up to a maximum withholding of $1,620.60 per year. The rate increased from 1.0% in 2024 due to program funding needs. SDI provides short-term disability benefits and paid family leave to eligible California workers who are unable to work due to non-work-related illness, injury, or family care needs.

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H2: 2025 California SDI Tax Details

Current Rate and Limits:

Item	2025 Amount	2024 Amount
SDI Tax Rate	1.1%	1.0%
Maximum Wage Base	$147,367	$153,164
Maximum Annual Withholding	$1,620.60	$1,539.58

How It Appears on Your Paycheck:

• Listed as "CA SDI" or "CASDI"
• Withheld from gross wages each pay period
• Stops automatically once you reach the annual maximum

Calculation Example: Employee earning $75,000 annually:

• Annual wages: $75,000
• SDI rate: 1.1%
• Annual SDI tax: $75,000 × 1.1% = $825

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H2: What Does California SDI Cover?

SDI provides two main benefit programs:

1. Disability Insurance (DI):

• Short-term wage replacement for non-work disabilities
• Covers illness, injury, or pregnancy
• Benefits: 60-70% of wages (depending on income)
• Duration: Up to 52 weeks
• 7-day waiting period before benefits begin

2. Paid Family Leave (PFL):

• Wage replacement for family care
• Bonding with new child (birth, adoption, foster)
• Caring for seriously ill family member
• Benefits: 60-70% of wages
• Duration: Up to 8 weeks per year

Eligibility Requirements:

• Unable to do regular work for at least 8 consecutive days
• Employed or actively looking for work when disability began
• Lost wages due to disability
• Earned at least $300 in wages with SDI deductions
• Under care of licensed physician/practitioner

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H2: Who Is Exempt from California SDI?

Not Required to Pay SDI:

• Self-employed individuals (unless electing coverage)
• Certain religious exemptions
• Some non-profit employees
• Interstate Railroad employees (covered under federal system)
• Certain government employees (covered under separate plans)

Self-Employed Elective Coverage:

• Can elect coverage through Disability Insurance Elective Coverage (DIEC)
• Must apply within specific timeframes
• Provides same benefits as employee coverage

Out-of-State Workers:

• Only California wages subject to SDI
• Remote workers for CA companies may be subject to SDI
• Depends on state reciprocity agreements

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H2: SDI vs. Other California Payroll Taxes

California employees see several taxes on their paychecks:

Tax	Rate (2025)	Wage Cap	Purpose
CA SDI	1.1%	$147,367	Disability/Paid Family Leave
CA UI (Employer pays)	1.5% - 6.2%	$7,000	Unemployment Insurance
CA ETT (Employer pays)	0.1%	$7,000	Employment Training
Social Security	6.2%	$176,100	Federal retirement
Medicare	1.45%	No cap	Federal healthcare

Key Differences:

• SDI: Employee-paid, funds disability benefits
• UI: Employer-paid, funds unemployment benefits
• ETT: Employer-paid, funds job training

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H2: Claiming SDI Benefits

How to File a Claim:

1. Obtain medical certification from licensed physician
2. File online at sdi.edd.ca.gov or by mail (Form DE 2501)
3. Wait 14 days for processing
4. Receive debit card or direct deposit for payments

Benefit Amounts (2025):

• 60-70% of wages earned 5-18 months before claim
• Minimum: $50 per week
• Maximum: $1,620 per week

Taxation of Benefits:

• SDI benefits are not subject to California state tax
• May be subject to federal income tax (report on Form 1099-G)
• PFL benefits have same tax treatment

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H2: Related Tax Questions

For general SDI tax information across states, see our guide on SDI tax with the complete state-by-state breakdown.

Learn about the meaning of SDI on your paycheck in our guide on what is SDI tax with detailed explanations.

For information on whether California taxes Social Security benefits, see our guide on does California tax Social Security with state retirement tax analysis.

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