State Disability Insurance Payroll Rates 2026 — All States SDI/TDI/PFL Tax Tables

Only five U.S. states (California, New York, New Jersey, Rhode Island, Hawaii) plus Puerto Rico maintain a state-administered Disability Insurance (SDI/TDI) program funded by payroll tax. An additional eight states and the District of Columbia have enacted Paid Family and Medical Leave (PFML) programs financed by employer-paid or employee-paid payroll contributions: Washington, Massachusetts, Connecticut, Oregon, Colorado, Maryland, Delaware, Minnesota, and the District of Columbia. The remaining 38 states have no state-mandated short-term disability or paid leave program — employees rely on private employer benefits, federal FMLA (unpaid), or none at all.

This guide presents the 2026 contribution rates and wage bases for every state that imposes a SDI, TDI, PFL, or PFML payroll tax, with notes on the employer-vs-employee split, the maximum benefit amount, and the leave duration entitlement. Verified against each state agency's published rate schedule for 2026.

Five Legacy SDI/TDI States (California, New York, New Jersey, Rhode Island, Hawaii)

California — State Disability Insurance (SDI) + Paid Family Leave (PFL)

California is the largest SDI program in the U.S. with approximately 16 million covered workers. SB 951 (effective 2024) removed the prior $153,164 wage base cap, meaning the 1.1% applies to all wages with no annual maximum. The same legislation increased the wage replacement rate from a sliding 60-70% to 70-90%.

New York — Disability Benefits Law (DBL) + Paid Family Leave (PFL)

NY DBL is the oldest state disability program in the U.S. (1949). PFL was added in 2018, ramping from 8 weeks at 50% wage replacement in 2018 to current 12 weeks at 67%. Employers may also pay the employee contribution voluntarily.

New Jersey — Temporary Disability Insurance (TDI) + Family Leave Insurance (FLI)

NJ has an unusual structure where the TDI employee rate has dropped to 0% in 2026 (was 0.14% in 2025) — meaning employers bear the full TDI cost. FLI remains employee-paid. The 2026 wage base alignment with the Social Security wage base ($176,100) is by NJ statute.

Rhode Island — Temporary Disability Insurance (TDI) + Temporary Caregiver Insurance (TCI)

Hawaii — Temporary Disability Insurance (TDI)

Eight New-Wave PFML States (2017-2026)

Since Washington enacted the first new-wave PFML program in 2017 (effective 2020), eight states plus the District of Columbia have followed. Each program has its own rate structure and benefit design.

Washington — Paid Family and Medical Leave (PFML)

Massachusetts — Paid Family and Medical Leave (PFML)

Connecticut — Paid Family and Medical Leave (CT Paid Leave)

Oregon — Paid Leave Oregon (PLO)

Colorado — Family and Medical Leave Insurance (FAMLI)

Maryland — Family and Medical Leave Insurance (Maryland FAMLI)

Delaware — Paid Family Leave (DE Healthy Delaware Families Act)

Minnesota — Paid Family and Medical Leave (MN PFML)

District of Columbia — Paid Family Leave (DCPFL)

The 38 States Without State Disability or PFML

Workers in the following states have no state-mandated short-term disability or paid family/medical leave program: Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming.

Workers in these states rely on: (a) private short-term disability insurance offered by employers (typically employer-paid or employee-paid voluntary at 50-67% wage replacement); (b) federal Family and Medical Leave Act (FMLA, unpaid up to 12 weeks for employers with 50+ employees); (c) employer-provided sick leave, vacation, or PTO; (d) Social Security Disability Insurance for long-term disabilities lasting 12+ months.

Several of these states have PFML legislation pending or proposed (Vermont, Maine, Illinois, Michigan, Pennsylvania, Virginia). The PFML movement has gained substantial momentum since 2020, and several additional states are likely to enact programs in 2026-2028.

Worked Example — California Employee Earning $100,000 in 2026

Worked Example — Massachusetts Employee Earning $80,000 in 2026

Common Compliance Errors

• Wage base alignment with SSA. Most new-wave PFML programs (WA, MA, CT, OR, CO, MD, DE, MN) have aligned their wage bases with the SSA Social Security wage base ($176,100 for 2026). Programs typically update the wage base annually — payroll systems must update each January.
• Employer-vs-employee split errors. Each state's split is unique. NJ TDI dropped to 0% employee in 2026; CA is 100% employee; DC is 100% employer; WA, MA, OR, CO, MD, DE, MN have hybrid splits with employer share for larger employers only.
• Small employer exemptions. Most new-wave programs exempt small employers from the employer share (typically employers under 25 or 50 employees) — but the employee share usually still applies.
• Self-employed elections. Most new-wave programs allow self-employed individuals to voluntarily elect coverage by paying both shares; CA SDI separately allows self-employed enrollment with separate rate calculations.
• Out-of-state employees. Wage source rules vary — typically the employee's primary work location state controls. Remote workers and multi-state workers create complex residency questions.
• Private plan substitution. Some states (NY, NJ, RI, MA, WA, OR, CO) allow employers to substitute a private plan that meets or exceeds the state benefit — relieving the employer of state contribution obligations.

Federal Tax Treatment of SDI/PFML Contributions and Benefits

Per IRS guidance:

• Employee SDI/PFML contributions are post-tax payroll deductions in most states; not pre-tax. Employees cannot deduct these as miscellaneous itemized expenses (TCJA suspension).
• SDI/TDI benefits received are taxable to the extent the contributions were employer-paid; non-taxable to the extent the contributions were employee-paid. For employee-paid CA SDI, the benefits are generally tax-free.
• PFML benefits received are generally taxable as ordinary income (per IRS PLR 202234012 and similar guidance — verify with a tax professional as 2026 guidance evolves).
• Federal income tax withholding from PFML benefits varies by state — some states withhold automatically; others require Form W-4P or equivalent election.

Frequently Asked Questions