California SDI: State Disability Insurance Explained
Updated 30 March 2026
California State Disability Insurance (SDI) is a mandatory payroll deduction that funds two programs: short-term disability benefits and Paid Family Leave (PFL). In 2026, the SDI rate is 1.1% of taxable wages up to $153,164, meaning the maximum annual SDI deduction is $1,685. Unlike Social Security and Medicare (which are federal), SDI is a California-specific tax that appears as a separate line item on your paycheck. Most employees do not think about SDI until they need it, but it provides critical income replacement during medical leave or family bonding time.
2026 SDI Quick Facts
What SDI Covers
Disability Insurance (DI)
Replaces income when you cannot work due to a non-work-related illness, injury, or pregnancy. Covers:
- Surgery recovery (knee replacement, back surgery, etc.)
- Pregnancy and childbirth (typically 6-8 weeks)
- Serious illness (cancer treatment, heart conditions)
- Mental health conditions (with medical documentation)
Duration: up to 52 weeks. Waiting period: 7 days from disability onset.
Paid Family Leave (PFL)
Replaces income when you take time off to bond with a new child or care for a seriously ill family member. Covers:
- Bonding with a newborn, adopted, or foster child
- Caring for a seriously ill child, parent, spouse, or domestic partner
- Military family events (qualifying exigency)
Duration: up to 8 weeks within 12 months of the qualifying event.
Benefit Calculation
SDI benefits are calculated based on your highest-earning quarter in the 12-month base period before your claim. If you earned $20,000 in your highest quarter, your weekly benefit is approximately $923 (roughly 60-70% of your average weekly wage in that quarter). The exact percentage is 60% for higher earners and 70% for lower earners (those earning less than approximately one-third of the state average wage).
The maximum weekly benefit in 2026 is $1,620. To receive the maximum, your highest quarterly earnings must be approximately $30,375 or more. A worker earning $75,000 annually ($18,750 per quarter) would receive roughly $865 per week, or about 60% of their normal weekly pay ($1,442). This means a significant pay cut during leave, which is why many employers offer supplemental short-term disability insurance to bridge the gap.
How to File a Claim
Get medical certification
Your doctor must complete the medical certification portion of the claim form, confirming you are unable to work (for DI) or that you need to care for a family member (for PFL).
File online through myEDD
Create an account at myEDD (edd.ca.gov) and file your claim online. You can also file by mail using form DE 2501 (disability) or DE 2501F (paid family leave).
Wait for processing
The EDD processes most claims within 14 days of receiving a completed application. Complex cases may take longer. You can check status through myEDD.
Receive benefits
Benefits are paid biweekly via EDD debit card or direct deposit. The first payment covers the period after the 7-day waiting period.
How California Compares to Other States
Only six states (plus D.C. and Puerto Rico) have mandatory state disability insurance programs: California, Hawaii, New Jersey, New York, Rhode Island, and Washington. Most states rely entirely on employer-provided disability insurance or no coverage at all. California's program is among the most generous in benefit amount and duration.
| State | Employee Rate | Max Weekly Benefit | Max Duration |
|---|---|---|---|
| California | 1.1% | $1,620 | 52 weeks |
| New York | 0.5% (capped) | $170 | 26 weeks |
| New Jersey | 0.26% | $1,025 | 26 weeks |
| Rhode Island | 1.1% | $1,007 | 30 weeks |
| Hawaii | 0.5% | $765 | 26 weeks |
| Washington | 0.58% | $1,456 | 12 weeks (PFL) |
California's $1,620 maximum weekly benefit and 52-week maximum duration make it the most comprehensive state disability program in the country. New York's program, by contrast, caps benefits at just $170 per week, making it essentially supplemental rather than income-replacing. The 1.1% SDI rate is higher than most other states, but the benefit level reflects that investment.