State disability insurance rates by state, 2026.

State disability insurance rates for 2026

Disability insurance, called SDI in California and TDI elsewhere, pays a share of wages when an employee cannot work because of a non-work illness or injury. Five states collect for it through payroll. The table lists the employee deduction each state published for 2026 and the most it can reach in a year; the yearly maximums for New Jersey, New York, Rhode Island and Hawaii are our arithmetic from the published rate and wage base.

How each state calculates the deduction

California: one rate, no ceiling

The Employment Development Department sets the 2026 SDI withholding rate at 1.3 percent. Until 2023 SDI stopped at a taxable wage limit. Senate Bill 951 removed it, and since January 1, 2024 all wages are subject to SDI. The formula is therefore simply gross wages times 0.013, with no maximum, which is the point most payroll templates still get wrong.

New Jersey: two deductions on one wage base

Workers pay Temporary Disability Insurance (TDI) at 0.19% and Family Leave Insurance (FLI) at 0.23% in 2026. Both apply to the same worker wage base of $171,100, up from $165,400 in 2025. The $44,800 base on the state page is the separate, much lower employer TDI base, so do not use it for employee withholding.

New York: a tiny weekly cap and a larger family leave line

Under the Disability Benefits Law an employee contribution is one-half of one percent of wages, but no more than sixty cents a week. Because 0.5% of a weekly wage passes sixty cents at only $120, almost every employee simply pays $0.60 a week, $31.20 over 52 weeks. Paid Family Leave is separate: 0.432% of gross wages per pay period in 2026, with a $411.91 annual maximum. Employees earning less than the New York State Average Weekly Wage of $1,833.63 pay less than the cap.

Rhode Island: one rate for two programs

The Department of Labor and Training set the 2026 TDI rate at 1.1 percent on a $100,000 wage base, down from 1.3 percent on $89,200 in 2025. The maximum employee contribution fell from $1,159.60 to $1,100. The same contribution funds Temporary Caregiver Insurance, so Rhode Island does not show a second line.

Hawaii: a ceiling, not a fixed rate

Hawaii's Disability Compensation Division sets a maximum weekly wage base of $1,500.21 for 2026 and lets an employer withhold one-half of the premium cost, but not more than 0.5% of the weekly wage and not more than $7.50. If the employer's premium is cheaper than the ceiling the deduction is lower, so the calculator above shows the largest amount that can legally be taken, not a guaranteed figure.

Worked example: two salaries, same year

These figures are hypothetical employees paid every two weeks, calculated with the 2026 constants above. Each cap is applied across the whole year and the paycheck column is the annual amount divided by 26.

At $85,000 New Jersey and New York both take less than 0.5% of pay because of the low New York DBL cap, while California is the heaviest at $1,105 because it has no ceiling. At $200,000 the caps bite: New Jersey stops at $718.62, New York at $443.11, Rhode Island at $1,100 and Hawaii at $390, while California keeps growing to $2,600. California is the costliest of the five at every salary, because 1.3% is the highest rate and nothing stops it.

Common mistakes

• Treating California SDI as capped. It was capped until the end of 2023 and many older guides still show a limit.
• Using New Jersey's $44,800 employer TDI base for workers. Workers use $171,100.
• Withholding the New York DBL amount as 0.5% of pay with no weekly cap, or forgetting that PFL is a different deduction with its own annual maximum.
• Reading Hawaii's 0.5% as a rate. It is the ceiling, and the real deduction depends on the premium and the half-cost rule.
• Applying the Rhode Island 1.1% twice, once for TDI and once for TCI. It is one contribution.
• Using 2025 numbers in January payroll. Rates and wage bases changed in all five states between 2025 and 2026.

Who this is for, and what it does not cover

This page is for payroll administrators, bookkeepers and small employers setting up withholding in one of the five states, and for employees checking a pay stub. It covers employee payroll deductions for the 2026 calendar year only.

It does not cover benefit eligibility or amounts beyond the headline maximums, employer-side premiums and experience rating, approved private plans that can replace the state plan, income tax withholding, or the paid family and medical leave programs in other states, which are on the paid family and medical leave rates page. State agencies change these figures every year, so confirm against the sources below before filing.