EDDPublished September 2, 2026
EDD 2026 Payroll Tax Rates: SDI 1.3%, ETT 0.1%, and New Withholding Schedules
What changed
EDD posted 2026 payroll tax rates: SDI withholding 1.3% on all wages, ETT 0.1% on the first $7,000 per employee, UI Schedule F+ (1.5%–6.2%, new employers 3.4%, $7,000 wage base), plus the 2026 Method A and Method B withholding schedules.
Who it applies to
All California employers who withhold State Disability Insurance (SDI) from employee wages.
What employers may need to do
- Withhold SDI at 1.3% on all 2026 wages (no taxable wage cap).
- Apply ETT at 0.1% on the first $7,000 of each employee's 2026 wages.
- Load the 2026 Method A or Method B California withholding schedules into payroll.
Official source
https://edd.ca.gov/en/payroll_taxes/rates_and_withholding/#collapse-7deb5fc1-5ae0-4ec7-8c7f-b03e26e9ad36Detected by RegWatch monitoring on August 5, 2026. Always confirm details against the official source above — this page is a summary, not legal advice.
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- CA LegislatureAB 1331: California Bans Workplace Surveillance in Bathrooms From January 1, 2027
- CA LegislatureAB 1883: Employers Can't Use AI to Read Employees' Emotions or Collect Neural Data From 2027
See how this may affect a client
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