US: California SDI Contribution Rate Set for 2026 (1.3%)
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California EDD confirms the 2026 State Disability Insurance (SDI, which also funds Paid Family Leave) employee withholding rate. Wage cap remains removed.
Effective Date
- January 1, 2026
Published
- (EDD web pages updated October 2025)
Impact
- Increase SDI withholding to 1.3% of all covered wages for 2026 payrolls.
Payroll action
- Update state tax tables; validate no SDI wage limit; update employee cost projections and accruals.