What Is SDI on a Pay Stub? CASDI Rate, Benefits, and Wage Rules
Written by the ePaystubs Editorial Team · Last updated: June 2026
SDI on a pay stub is the state disability insurance tax. In California, where most people see it, it is called CASDI, withheld at 1.3% of your wages in 2026 with no wage cap, and it funds short-term disability benefits and paid family leave. It is paid entirely by you, the employee, and your employer does not match it. SDI is not your state income tax, and it is not unemployment tax.
The short version: SDI is the state disability tax, mostly California's CASDI. It is 1.3% of all your wages in 2026 (no cap), you pay it, and it funds disability and paid family leave.
This is one of the codes you might find in the deductions area of a stub. For the full list of what each one means, see our guide on pay stub abbreviations. Here we focus on the state disability line.
What it stands for: State Disability Insurance (called CASDI in California).
What it funds: short-term disability and paid family leave.
Employee rate (California, 2026): 1.3% of all wages.
Wage cap: none in California (removed January 1, 2024).
Who pays: the employee.
What SDI and CASDI stand for
SDI stands for State Disability Insurance. In California it is called CASDI (California State Disability Insurance), and on a stub it can read CASDI, CASDI-E (the "E" means employee contribution), or just SDI. You may also see VPDI or VSDI, which means your employer uses an approved private plan instead of the state plan (more on that below). The label depends on the payroll system, but it is the same state disability contribution.
What SDI pays for
Your SDI contribution funds two California programs through a single deduction. There is no separate line for the second one.
- Disability Insurance (DI) pays you when you cannot work because of a non-work-related illness or injury, including pregnancy and childbirth recovery.
- Paid Family Leave (PFL) pays you when you take time off to bond with a new child or care for a seriously ill family member.
This is why people search for a missing "PFL" deduction and cannot find one. There is no separate PFL line, because your single SDI contribution funds both programs. SDI is also different from workers' compensation, which covers work-related injuries; SDI is for everything non-work-related that still keeps you off the job. SDI benefits themselves are generally not taxed by the IRS. At the end of the year, the SDI amount you paid usually appears in Box 14 of your W-2, which simply reports what was already withheld.
The California SDI rate for 2026
For 2026, the California SDI rate is 1.3% of your wages, and there is no wage cap, so it applies to all of your earnings. You pay it; your employer does not match it. The math is simple: your wages multiplied by 1.3%, which works out to about $13 for every $1,000 you earn. You can confirm the current rate with the California Employment Development Department.
| Item | 2026 figure |
|---|---|
| Employee SDI rate | 1.3% |
| Wage cap | None (removed January 1, 2024) |
| Who pays | Employee only |
| What it funds | Disability Insurance and Paid Family Leave |
Why your SDI might be higher than before
Two changes pushed SDI amounts up. First, the rate has risen over recent years, from 1.1% in 2022 to 1.3% in 2026. Second, and more noticeable for higher earners, California removed the wage cap in 2024, so SDI now applies to all of your wages rather than stopping at a ceiling. If you earn above the old limit, you now pay 1.3% on every dollar, which is why your SDI line may look larger than it used to. For most workers the change is small, but for high earners it is real.
SDI vs state income tax (SIT)
SDI and state income tax are both "state" lines, but they are not the same. SDI funds disability and paid family leave benefits that you may claim later. State income tax, sometimes shown as CA PIT, is the income tax your employer withholds and sends to the state for general funds like schools and roads. For more on that line, see our guide on state income tax withholding (SIT).
SDI vs state unemployment (SUI)
SDI is also separate from state unemployment. SDI pays you when you cannot work because of an illness or injury. State unemployment insurance (SUI) pays you when you lose your job. For more on that line, see our guide on state unemployment insurance (SUI).
| Line | What it funds | Who usually pays (California) |
|---|---|---|
| SDI / CASDI | Disability and paid family leave | Employee |
| SUI / SUTA | Unemployment benefits | Employer (mostly) |
| SIT / CA PIT | State income tax | Employee |
What VPDI or VSDI means
Some California employers use an approved private plan, called a Voluntary Plan, instead of the state plan. When they do, your stub shows VPDI, VSDI, or VDI rather than SDI, and your contribution goes to that plan instead of the state fund. A Voluntary Plan has to be approved by the state and must provide benefits at least as good as the state plan, plus at least one better feature. You cannot personally opt out of disability coverage, but the form it takes depends on your employer. Separately, many government workers are covered by a different program called Non-Industrial Disability Insurance (NDI) rather than regular SDI, which is one reason some public employees do not see an SDI line.
Which states have SDI?
SDI is not a federal tax, and only a handful of states have a disability program. Outside California it is often called TDI, for Temporary Disability Insurance.
- California
- Hawaii
- New Jersey
- New York
- Rhode Island
- Puerto Rico
The rate, the wage rules, and the benefit amounts are set by each state, so they differ from one to the next. For the rules where you work, check your state's tax agency or the matching ePaystubs state page, such as the California paystub page.
A sample SDI line on a pay stub
Here is a short fictional example showing how CASDI might appear on a California stub. The numbers are made up to illustrate the layout only.
Fictional example, for illustration only
Gross pay$2,000.00
Federal income tax-$210.00
State income tax (CA PIT)-$60.00
CASDI (SDI), 1.3%-$26.00
Net pay$1,704.00
The CASDI line here is 1.3% of the $2,000 gross, which is $26. It sits separately from the state income tax line, because the two are different deductions. If you want to produce a clean stub that lays out the lines clearly, you can create a pay stub that shows them in order. Any stub you create should reflect real, accurate pay.
A quick checklist
When you see SDI or CASDI on a stub, a short scan covers the basics.
- The label is SDI, CASDI, CASDI-E, or VPDI/VSDI
- The amount is about 1.3% of your gross pay (California, 2026, no cap)
- You pay it; your employer does not match it
- It funds disability and paid family leave
- It is not income tax (SIT) or unemployment (SUI)
Once you know SDI is the state disability tax, the line is easy to place: in California it is 1.3% of your pay with no cap, you pay it yourself, and it funds the disability and paid family leave benefits you may need down the road.
Frequently asked questions
What does SDI mean on a pay stub?
SDI means State Disability Insurance, the state disability tax. In California it shows as SDI or CASDI.
What is CASDI?
CASDI is California's name for the SDI tax, short for California State Disability Insurance. It funds disability and paid family leave benefits.
What is the SDI rate in California for 2026?
The California SDI rate is 1.3% of your wages for 2026, paid entirely by the employee.
Is there a wage cap on SDI?
No. California removed the SDI wage cap on January 1, 2024, so all of your wages are subject to it. Older articles that mention a cap are out of date.
Is SDI the same as state income tax?
No. SDI funds disability and paid family leave. State income tax (SIT or CA PIT) is income tax that goes to the state for general funds.
Where is my Paid Family Leave (PFL) deduction?
There is no separate PFL line. Your single SDI contribution funds both disability insurance and paid family leave.
What is VPDI or VSDI?
It means your employer uses an approved private Voluntary Plan instead of the state plan. Your contribution goes to that plan, which must match or beat the state benefits.
Can I opt out of SDI?
No. SDI is mandatory for covered California employees, though your employer may use an approved voluntary plan, and some government workers are covered by a separate program called NDI.
Which states have SDI?
California, Hawaii, New Jersey, New York, and Rhode Island, plus Puerto Rico. It is often called TDI outside California.
Related Pay Stub Codes
- What Is SIT or SWT on a Pay Stub?
- What Is SUI or SUTA on a Pay Stub?
- Pay Stub Abbreviations: Full List of Codes and Meanings
This article is for general information only and is not legal, tax, or payroll advice. Rules and payroll labels can vary by employer, payroll provider, and state, and disability insurance rates can change each year, so check your state agency, such as the California EDD, or a qualified professional for your situation.