California Just Became More Expensive for High Earners

A California tax expansion will benefit workers with lower incomes, but high earners will pay the price.

Metal sign that says TAXING CALIFORNIA
(Image credit: Getty Images)

Some high earners in the Golden State can expect to pay more California tax this year. That’s because the state has eliminated the wage cap on its 1.1% employee payroll tax for State Disability Insurance (SDI).  

Gov. Gavin Newsom says the tax expansion will “ensure more low-wage workers, many of them women and people of color, can access the time off they’ve earned while still providing for their family.”  

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.