The California state disability insurance tax changes for the worse in 2024. Starting in 2024, all California wages paid will be subject to the SDI tax. In the past, SDI tax had a maximum cap.

For 2024, the SDI withholding rate for 2024 increases to 1.1% (which is a 22.2% rate increase compared to 0.9% in 2023)

SO TAXPAYERS ARE HIT WITH A DOUBLE WHAMMY! As a reminder this tax is paid by employees and deducted from their paycheck.

For 2023 taxpayers got a break as the SDI tax rate dropped. The 2023 SDI rate was 0.9% with a maximum wage base of $153,164 and maximum amount an employee paid is $1,378.48.