California SDI is a payroll tax that funds short-term disability and family leave benefits
State Disability Insurance (SDI) is a California payroll tax deducted from your wages. The money goes into a state fund that pays benefits if you cannot work because of a non-work injury or illness, or if you need time off to care for a newborn, newly adopted child, or seriously ill family member. You do not pay this tax in any other state.
Your employer withholds SDI from your paycheck — it appears as a line item on your pay stub. The tax rate changes each year. For 2024, the rate is 1.0% of your wages, up to a maximum taxable wage base set by the state. This means if you earn $153,164 in a year (the 2024 maximum), you pay SDI tax only on that amount, not on anything above it.
SDI is separate from Social Security, Medicare, and federal income tax withholding. It is also separate from Paid Family Leave (PFL), though both programs are administered by the same California agency and both deductions may appear on your pay stub.
Key Takeaways
- SDI is a mandatory California payroll tax that funds benefits when you cannot work due to illness, injury, or pregnancy.
- Your employer deducts SDI from your paycheck at a rate that changes yearly — currently 1.0% of wages up to a state-set maximum.
- SDI benefits replace a portion of your wages for up to 26 weeks if you meet the program's requirements.
- You can file an SDI claim with the California Employment Development Department (EDD) online, by phone, or by mail.
- SDI does not cover work-related injuries — those are handled by workers' compensation insurance instead.
Who pays SDI tax and who does not
Most California employees pay SDI tax on their wages. Your employer is required to withhold it unless you fall into a specific exemption. Federal employees, railroad employees covered by federal railroad retirement, and certain other groups do not pay California SDI.
Self-employed people in California can choose to pay into SDI voluntarily, but it is not required. If you are self-employed and choose to participate, you pay both the employee and employer portion of the tax.
Some workers are exempt even though they live in California. If you work for the federal government, you are covered by federal disability insurance instead. If you are a railroad employee under the Railroad Retirement Act, you are also exempt. State employees and certain local government employees may have their own disability programs and do not pay SDI.
What SDI benefits cover and how much you receive
SDI benefits replace part of your regular wages when you cannot work. The benefit amount is based on your average weekly wage over a 12-month period before your claim begins. The state calculates this and sets a maximum weekly benefit amount, which changes each year — in 2024 it is $1,540 per week.
You receive 60% to 70% of your average weekly wage, depending on your income level. The exact percentage is set by state law and does not change. If you earn very little, you may receive a higher percentage; if you earn more, the percentage is lower but the dollar amount is capped at the state maximum.
SDI covers non-work illnesses and injuries, pregnancy and childbirth recovery, and time off to bond with a newborn or newly adopted child. It does not cover work-related injuries — those are the responsibility of your employer's workers' compensation insurance. It also does not cover job loss, strikes, or voluntary time off.
How long SDI benefits last
SDI benefits can last up to 26 weeks in a 12-month period. This is the total amount of time you can receive SDI in any rolling 12-month window, regardless of how many separate claims you file during that time.
If you take time off for pregnancy and recovery from childbirth, that time counts toward your 26-week limit. If you then become ill later in the same 12-month period, your remaining SDI weeks are reduced by the weeks you already used. The 12-month period is based on when your first claim begins, not the calendar year.
Some people confuse SDI with Paid Family Leave. PFL is a separate program that also pays benefits for bonding with a new child or caring for a family member, and it has its own 12-week limit. You can use both SDI and PFL in the same 12-month period, but the total time off is limited by both programs' rules.
How to file an SDI claim
You file an SDI claim with the California Employment Development Department (EDD). You can file online through the EDD website, by phone at 1-800-480-3287, or by mail. The online method is usually fastest — you can start a claim when ready and upload documents right away.
To file, you will need your Social Security number, driver's license or ID number, and information about your employer. If you are claiming due to illness or injury, you will also need a medical certification from your doctor. The form is called a Claim for Disability Insurance Benefits, and the EDD provides it or generates it during the online filing process.
After you file, the EDD reviews your claim and sends you a notice of information. This notice tells you whether you are found to be disabled under SDI rules, how much your weekly benefit is, and when payments begin. If the EDD denies your claim, the notice explains why and how to appeal.
The difference between SDI and workers' compensation
SDI and workers' compensation are two separate programs that cover different situations. SDI covers illnesses and injuries that happen outside of work — a car accident, the flu, a broken leg from a fall at home. Workers' compensation covers injuries and illnesses that happen because of your job.
If you are injured at work, you file a workers' compensation claim with your employer's insurance carrier, not with the EDD. Workers' compensation typically pays more than SDI and covers medical treatment as well as lost wages. You cannot receive both SDI and workers' compensation for the same injury at the same time.
If you are unsure whether your injury is work-related, tell your employer when ready. Your employer is required to provide you with workers' compensation claim forms. If your employer denies that the injury is work-related and you disagree, you can file a claim anyway — the insurance company will investigate.
SDI tax rates and wage limits by year
| Year | SDI Tax Rate | Maximum Taxable Wages |
|---|---|---|
| 2024 | 1.0% | $153,164 |
| 2023 | 1.0% | $153,164 |
| 2022 | 1.0% | $153,164 |
The tax rate and maximum wage base are set by the California Department of Industrial Relations and announced each year. The rate can change based on the balance in the SDI fund. If the fund has a surplus, the rate may decrease; if it has a deficit, the rate may increase. The maximum taxable wage base is adjusted annually for inflation.
Frequently Asked Questions
Can I get SDI if I am pregnant?
Yes. Pregnancy and recovery from childbirth are covered by SDI. You can file a claim starting four weeks before your due date, or you can wait until after you give birth. The benefit covers the period when you are unable to work due to pregnancy or recovery, typically six to eight weeks after delivery for a vaginal birth and eight to ten weeks for a cesarean birth.
What happens if my employer does not withhold SDI from my paycheck?
Your employer is required by law to withhold SDI. If they do not, contact the EDD or the California Department of Industrial Relations to report it. You may still be able to file an SDI claim even if you were not withheld — the EDD can investigate and may require your employer to pay back taxes.
Do I have to use SDI, or can I use my own paid time off instead?
That depends on your employer's policy. Some employers require you to use SDI first; others let you use your own paid leave. Check your employee handbook or ask your human resources department. You can also use both — some people use paid leave first and then file for SDI once their paid leave runs out.
How long does it take to receive my first SDI payment?
The EDD typically processes claims within two to three weeks. Once your claim is approved, payments are sent by debit card or direct deposit. The first payment may take an additional week or two to arrive after approval. If you file online, the process is usually faster than filing by mail or phone.
Can I work part-time while receiving SDI?
You can earn some income while on SDI, but your benefits are reduced. If you earn more than a certain amount per week, your SDI payment is reduced dollar-for-dollar. The EDD will tell you the earnings limit when your claim is approved. You must report any earnings to the EDD or you may have to repay benefits.