SDI Tax California: 2025 Rate and Who Pays State Disability Insurance

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H1

SDI Tax California: 2025 Rate and Coverage

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ANSWER SECTION

California SDI tax is a mandatory 1.2% payroll tax on employee wages up to $153,164 (for 2025), funding the State Disability Insurance program. CA SDI provides short-term disability benefits (60-70% of wages, up to $1,636 per week in 2025) to California workers who cannot work due to non-work-related illness, injury, or pregnancy. All California employees pay SDI through paycheck withholding, and the program covers approximately 18 million workers in the state.

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H2: 2025 California SDI Tax Rate and Limits

Current Rates (2025):

Component	Rate	Wage Cap	Maximum Annual Tax
SDI (Disability)	1.1%	$153,164	$1,684.80
PFL (Paid Family Leave)	1.1%*	$153,164	Included above
Total CA SDI	1.2%	$153,164	$1,837.97

*Note: PFL is now integrated into the overall SDI rate structure

Historical CA SDI Rates:

Year	Rate	Wage Cap
2025	1.2%	$153,164
2024	1.1%	$153,164
2023	0.9%	$153,164
2022	1.1%	$145,600
2021	1.2%	$128,298

Who Pays:

• Employees only - withheld from paychecks
• Employers do NOT pay or match CA SDI
• Self-employed can elect coverage voluntarily

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H2: What CA SDI Covers

Benefit Types:

1. Disability Insurance (DI):

• Non-work-related illness or injury
• Surgery recovery
• Pregnancy disability (before birth)
• Mental health conditions
• Maximum benefit: 52 weeks

2. Paid Family Leave (PFL):

• Bonding with new child (birth, adoption, foster)
• Caring for seriously ill family member
• Military family leave
• Maximum benefit: 8 weeks

2025 Benefit Amounts:

Wage Range	Benefit Percentage	Maximum Weekly
Lower wages	70%	Up to $1,636
Higher wages	60%	Up to $1,636

Minimum Weekly Benefit: $50

Example Calculation:

• Quarterly earnings: $15,000
• Weekly benefit base: $15,000 ÷ 13 = $1,154
• If eligible for 60%: $692/week
• If eligible for 70%: $808/week

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H2: Who Must Pay CA SDI

Covered Employees:

Must Pay SDI:

• Full-time employees
• Part-time employees
• Temporary employees
• Seasonal workers
• Most California workers regardless of employer size

Exemptions (Rare):

• Some religious organization employees
• Certain non-profit employees
• Interstate railroad workers (federal program)
• Some government employees (have separate programs)

Self-Employed:

• Not automatically covered
• Can elect coverage through Disability Insurance Elective Coverage (DIEC)
• Must apply through EDD
• Pay rate same as employees

Independent Contractors:

• Not covered by CA SDI
• Must pay into program voluntarily or rely on private disability insurance
• Misclassified employees may be eligible

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H2: How to File a CA SDI Claim

Step-by-Step Process:

Step 1: Qualify for Benefits

• Unable to work due to non-work condition
• Under care of licensed physician/practitioner
• Have wages in base period
• Meet minimum earnings requirements

Step 2: File Online

• Visit: edd.ca.gov/Disability
• Create SDI Online account
• Submit claim application
• Upload medical certification

Step 3: Medical Certification

• Doctor completes medical certificate
• Can be submitted electronically
• Must show inability to perform regular work
• Valid for specific period

Step 4: Serve Waiting Period

• First 7 days are unpaid waiting period
• Only one waiting period per claim year
• Benefits start on day 8 if eligible

Step 5: Receive Benefits

• EDD Debit Card mailed to you
• Benefits deposited every 2 weeks
• Must certify continued eligibility
• Report any work or income

Timeline:

• Processing: 14-21 days typical
• First payment: 3-4 weeks after filing
• Retroactive to first day of disability (after waiting period)

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H2: CA SDI Tax Treatment

Federal Tax:

SDI Contributions:

• Not deductible on federal return
• Cannot be claimed as itemized deduction

SDI Benefits Received:

• Taxable federally as ordinary income
• Report on federal return
• EDD sends 1099-G if benefits exceed $10

California Tax:

SDI Contributions:

• Not deductible on California return

SDI Benefits Received:

• NOT taxable in California
• Do not report on California Form 540
• This is the "California advantage"

Example:

• You receive $10,000 in CA SDI benefits
• Federal: Report as income, pay tax at your federal bracket
• California: Excluded from income, no state tax

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H2: Related Tax Questions

For information on SDI programs in all states, see our guide on SDI tax with state-by-state comparison.

Learn about the definition and meaning of SDI tax in our guide on what is SDI tax covering how it works.

Understand the general concept of SDI withholding in our guide on SDI tax meaning with paycheck deduction explanations.

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