Tax Increase Coming for Millions of Californians on Jan. 1

The change will increase SDI contributions and thus boost the tax rate for those making above $68,350

A man walks by housing units in Huntington Beach, Calif., on March 17, 2023. John Fredricks/The Epoch Times

A California law that aims to provide more generous short-term disability and family leave benefits will take effect on Jan. 1, increasing taxes for middle-class families and high-income earners.

Senate Bill 951, passed in 2022, removed the earnings limit and maximum contribution for the state’s disability insurance tax—better known as SDI withholdings—starting in 2024 to fund expanded benefit payouts set to begin in 2025.