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sdi tax

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Q: ANSWER SECTION

SDI tax (State Disability Insurance) is a mandatory California payroll tax that provides short-term disability and paid family leave benefits to workers. For 2025, California employees pay 1.1% of wages up to $153,164 , making the maximum annual contribution $1,684.80 . Your employer withholds this from each paycheck. If you become disabled or need family leave, you can claim benefits that replace 60-70% of your wages.

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SDI Tax: What It Is and How It Works in California (2025)

P009: /tax-answers/sdi-tax/

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H1

SDI Tax: What It Is and How It Works in California (2025)

ANSWER SECTION

SDI tax (State Disability Insurance) is a mandatory California payroll tax that provides short-term disability and paid family leave benefits to workers. For 2025, California employees pay 1.1% of wages up to $153,164, making the maximum annual contribution $1,684.80. Your employer withholds this from each paycheck. If you become disabled or need family leave, you can claim benefits that replace 60-70% of your wages.

H2: What Does SDI Tax Cover?

California SDI provides wage replacement through two programs:

State Disability Insurance (DI):

Replaces income when you cannot work due to illness, injury, or pregnancy
Covers non-work-related conditions only (work injuries fall under workers' compensation)
Pays 60-70% of your base wages
Maximum duration: 52 weeks
7-day waiting period before benefits start

Paid Family Leave (PFL):

Replaces income when caring for a seriously ill family member
Replaces income for bonding with a new child (birth, adoption, foster care)
Same 60-70% wage replacement as DI
Maximum duration: 8 weeks per year

Both programs are funded by your SDI payroll deductions — there are no additional costs when you file a claim.

H2: 2025 SDI Tax Rates and Limits

Employee contribution rate: 1.1% of wages Maximum taxable wages: $153,164 Maximum annual employee contribution: $1,684.80

2025 SDI Rate History:

2021: 1.2%
2022: 1.1%
2023: 0.9%
2024: 1.1%
2025: 1.1%

The rate fluctuates based on the health of the SDI fund and projected benefit claims.

Example calculations for 2025:

$50,000 salary: $50,000 × 1.1% = $550 annual SDI tax
$100,000 salary: $100,000 × 1.1% = $1,100 annual SDI tax
$153,164+ salary: $153,164 × 1.1% = $1,684.80 maximum

H2: How to File an SDI Claim

If you need disability or family leave benefits:

Step 1: File online Visit SDI Online at edd.ca.gov and create an account

Step 2: Submit Part A (Claimant Statement) Provide personal information and details about your disability or leave

Step 3: Have your doctor submit Part B (Medical Certificate) For disability claims, your doctor must certify your condition online or by mail

Step 4: Serve the 7-day waiting period No benefits paid for the first 7 days of disability

Step 5: Receive payment Benefits arrive via EDD Debit Card or direct deposit, typically within 14 days of claim approval

Important deadlines:

File within 49 days of disability/start of leave
Late claims may be denied

H2: SDI vs. Other California Payroll Deductions

California employees see multiple deductions on their paystubs:

Deduction	Rate (2025)	Purpose
Federal Income Tax	Varies	Federal tax withholding
Social Security	6.2% (up to $176,100)	Retirement benefits
Medicare	1.45% (no cap)	Health insurance for 65+
CA State Income Tax	1-13.3%	California taxes
CA SDI	1.1% (up to $153,164)	Disability + family leave
CASDI	Same as SDI	Alternative abbreviation

Note: Some paystubs show "CASDI" — this is the same as SDI (California State Disability Insurance).

H2: Related Tax Questions

For a detailed explanation of what SDI tax is and how it funds California's disability programs, see our guide on what is SDI tax with 2025 rate specifics.

To understand the federal payroll tax that appears alongside SDI on your California paystub, review our guide on what is Medicare tax covering the 1.45% federal Medicare contribution.

California workers should also understand whether California taxes Social Security benefits as state rules differ from federal taxation of Social Security income.

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sdi tax

SDI Tax: What It Is and How It Works in California (2025)

P009: /tax-answers/sdi-tax/

META DATA

SCHEMA

H1

ANSWER SECTION

H2: What Does SDI Tax Cover?

H2: 2025 SDI Tax Rates and Limits

H2: How to File an SDI Claim

H2: SDI vs. Other California Payroll Deductions

H2: Related Tax Questions

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