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State disability and paid family leave insurance: who pays in 2026

Thirteen states and DC require employers to fund, collect for or insure a disability or paid family and medical leave program in 2026. In most, employees carry some or all of the cost through payroll deductions; Washington, Massachusetts, Colorado, Minnesota and Oregon also set minimum employer shares, and DC and New Jersey's disability tax charge employers directly. Maryland collects its first contributions on January 1, 2027, at an initial 0.9% of wages.

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Contents7 sections

Key takeaways

  • Five states run statutory temporary disability insurance for off-the-job illness or injury: California, New York, New Jersey, Rhode Island and Hawaii⁠1.
  • California's SDI rate is 1.3% of all wages in 2026 with no wage cap, and employers withhold it from employees rather than paying it themselves⁠1⁠9.
  • Where employers must contribute, the minimum share is set by statute: at least 60% of the medical portion in Massachusetts, at least 50% in Minnesota, all of DC's 0.75%⁠1⁠5.
  • Maryland's contributions begin January 1, 2027 and benefits begin by January 3, 2028; the initial rate is 0.9% of wages, capped by law at 1.2%⁠3.
  • Private plans can replace the state program in Delaware, Maryland, Colorado and Maine, and in New Jersey⁠1⁠2⁠3⁠6⁠7.

Quick facts

Disability states5: CA, NY, NJ, RI, HI⁠1
Paid leave programs13 states and DC have a disability or paid leave program⁠1
California SDI, 20261.3% of all wages, employee-paid⁠1
Maryland startContributions Jan 1, 2027; benefits by Jan 3, 2028 ⁠3
Maine benefitsPayable for leave on or after May 1, 2026 ⁠1

Two kinds of program, often combined

Statutory disability insurance pays cash benefits to a worker who cannot work because of a non-work illness, injury or pregnancy. It is separate from workers’ compensation, which covers work-related injuries. Five states have it: California, New York, New Jersey, Rhode Island and Hawaii⁠1. All but Hawaii pair it with a family-leave benefit. In California the 1.3% SDI contribution also funds Paid Family Leave⁠1. In New Jersey it is Family Leave Insurance⁠1, in Rhode Island Temporary Caregiver Insurance, and in New York a separate Paid Family Leave rider⁠1. Hawaii has no state paid family leave insurance program⁠1.

Paid family and medical leave (PFML) programs are newer. They pay wage replacement for the worker’s own serious health condition, for caring for a relative or for bonding with a child. Colorado, Connecticut, DC, Delaware, Maine, Massachusetts, Minnesota, Oregon and Washington run them⁠1. Delaware and Minnesota cover both medical and family leave, so they behave like disability programs as well⁠1.

For an employer the practical difference is who runs the money. In California, Rhode Island, Connecticut, Colorado, Oregon and Washington a state agency collects contributions and pays benefits. In New York and Hawaii you must buy an insured plan or get approval to self-insure⁠1⁠8. New Jersey is a hybrid: contributions go to the state plan unless the employer has an approved private plan⁠1⁠2.

2026 contributions and who pays

The table is built from our state pages, which cite each program’s own 2026 rate notice. Read the last column before the rate: a 0.88% contribution can cost an employer anything from nothing to the full amount.

State disability and paid family and medical leave programs: 2026 contributions
CaliforniaState Disability Insurance (SDI), including Paid Family LeaveBoth1.3% of all wages in 2026, no wage cap since Jan. 1, 2024No employer contribution; employers must withhold SDI from employees' wages and remit it to the EDD.
ColoradoColorado Family and Medical Leave Insurance (FAMLI)Paid leave0.88% of wages in 2026 for employers with 10+ employees; 0.44% for 9 or fewer.With 10 or more employees (counted over 20+ workweeks in the prior year) you remit the full 0.88%, and may deduct up to 0.44% from employee wages; with nine or fewer, the 0.44% employee share is what is remitted. An approved private plan can replace FAMLI.
ConnecticutCT Paid LeavePaid leave0.5% of wages in 2026Employees fund the program. The employer deducts 0.5% from pay and remits it to the CT Paid Leave Authority; contributions stop when the employee reaches the Social Security contribution limit with that employer.
DelawareDelaware Paid Leave (Healthy Delaware Families Act)Both0.8% of wages in 2025 and 2026 for employers with 25+ Delaware employees: 0.40% medical, 0.08% family caregiving, 0.32% parental. Employers with 10-24 pay only the 0.32% parental rate. From 2027 the Department of Labor sets the rates; the combined rate is held to 1.00%.The employer remits contributions every quarter. It may deduct up to 50% of each contribution from the employee's wages, and may pay the whole amount itself. Approved private plans can stand in for the state program.
District of ColumbiaDC Universal Paid Leave (Paid Family Leave)Paid leave0.75% of each covered employee's wagesThe statute requires the covered employer to contribute the 0.75% to the District. Covered employees are those who spend more than 50% of work time in DC, or are based in DC with the remainder elsewhere. Covered employers are those required to pay DC unemployment insurance; the United States and the District are excluded.
HawaiiTemporary Disability Insurance (TDI)DisabilityNo state rate; the employer buys an insured plan or gets approval to self-insure. Employees may be charged up to 0.5% of weekly wages, capped at $7.50 a week in 2026 (wage base $1,500.21).Pays the full cost, or at least half with the employee paying the rest up to the 0.5% cap. The employer pays anything above the cap.
MaineMaine Paid Family and Medical Leave (PFML)Paid leave1.0% of wages (15+ Maine employees) or 0.5% (fewer than 15), up to the Social Security wage base15+ employees: remit the full premium and may deduct up to half from employees. Under 15: remit half the premium; guidance says the 0.5% may be deducted in whole or in part from employees.
MassachusettsPaid Family and Medical Leave (PFML)Paid leave0.88% of eligible wages in 2026 for employers with 25 or more covered individuals (0.70% medical, 0.18% family); 0.46% for employers with fewer than 25.With 25 or more covered individuals, the employer must pay at least 60% of the medical portion (0.42% of wages) and may withhold up to 40% of it (0.28%) plus up to 100% of the family portion (0.18%) from employees. Under 25 covered individuals, there is no employer share and the 0.46% can be withheld in full.
MinnesotaMinnesota Paid Leave (family and medical leave)Both0.88% of wages for 2026 and 2027 (family 0.27%, medical 0.61%), on wages up to the Social Security wage base ($184,500 in 2026); 0.66% for qualifying small employersEmployers pay at least 50% and may deduct up to 0.44% of wages from employees. Small employers (30 or fewer employees with an average wage at or below 150% of the state average) pay the 0.66% rate and can still deduct up to 0.44%, so the employer pays at least 0.22%.
New JerseyTemporary Disability Insurance (TDI) and Family Leave Insurance (FLI)BothTDI: employers 0.10% to 0.75% on the first $44,800 per employee ($44.80 to $336.00), employees 0.19% on the first $171,100; FLI: employees 0.23% on the first $171,100 (2026).Employers pay TDI contributions at an experience-based rate in the 0.10% to 0.75% range and withhold the employee's TDI and FLI shares; employers make no FLI contribution.
New YorkDisability Benefits Law (DBL)DisabilityEmployee contribution up to 0.5% of wages, capped at $0.60 a week; employer premium set by carrierThe employer must provide coverage through an authorized carrier, NYSIF or self-insurance. It may, but need not, collect the employee contribution, and pays the rest.
New YorkPaid Family Leave (PFL)Paid leave0.432% of gross wages in 2026, maximum $411.91 a year, paid by the employee if the employer deducts it.Coverage is typically a rider on the DBL policy; the employer may fund it through employee payroll deductions rather than pay the premium itself.
OregonPaid Leave OregonPaid leave1% of gross wages up to $184,500 (2026)Employers with 25+ employees on average pay 40% of the 1% (0.4%) and employees 60%; employers with fewer than 25 pay no employer share.
Rhode IslandTemporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI)Both1.1% of wages up to $100,000 per employee in 2026 (maximum $1,100, our calculation)Employees pay through payroll deduction; there is no employer-paid share. You withhold and remit the tax.
WashingtonWashington Paid Family and Medical LeavePaid leave1.13% of wages in 2026, up to the Social Security wage cap ($184,500)Employers pay 28.57% of the premium and employees 71.43%, which is about 0.32% and 0.81% of wages by our calculation. Employers with fewer than 50 employees (as classified by ESD for 2025) owe no employer share but must still collect the employee share or pay it for them.

Rates as published by each program for 2026. Program links go to the official page.

What the table shows:

  • Employee-funded. California (1.3%, no wage cap since January 1, 2024), Rhode Island (1.1% of wages up to $100,000) and Connecticut (0.5%) put the whole contribution on the employee. You withhold and remit it and carry no employer share⁠1⁠9.
  • Employer-funded. DC charges the employer the full 0.75% of each covered employee’s wages⁠1. New Jersey charges employers an experience-rated TDI contribution of 0.10% to 0.75% on the first $44,800 per employee in 2026 and withholds the employee’s TDI and FLI shares, with no employer FLI contribution⁠1.
  • Statutory minimum employer share. Minnesota requires employers to pay at least 50% of the premium⁠5. Oregon employers with 25 or more employees pay 40% of the 1% rate⁠1. Washington employers pay 28.57% of a 1.13% premium unless they have fewer than 50 employees⁠1.
  • Size thresholds. Colorado (10 employees), Massachusetts (25 covered individuals), Maine (15) and Delaware (25) charge different rates or shares below the line⁠1.
  • Insured or approved plan, rate set by carrier. New York employers pay a carrier premium. The employee contribution to DBL is capped at 0.5% of wages and $0.60 a week, and you may choose not to collect it⁠1⁠8. Hawaii employees can be charged up to 0.5% of weekly wages, capped at $7.50 a week in 2026⁠1.
Our calculation, one $2,000,000 taxable payroll in three states
Program Total at 2026 or initial rate Employer minimum Employee maximum
Massachusetts PFML (25+ covered individuals, 0.88%) $17,600 $8,400 (60% of the 0.70% medical portion) $9,200
Colorado FAMLI (10+ employees, 0.88%) $17,600 $8,800 $8,800 (up to 0.44%)
Maryland FAMLI (15+ employees, initial 0.9%, from 2027) $18,000 $9,000 $9,000

Scroll the table sideways to see every column.

Inputs: all wages under the Social Security wage cap, no private plan, employer deducting the maximum allowed⁠1⁠3. Massachusetts moves the employer share from the medical to the family portion from January 1, 2027⁠1. Payroll above the cap, or a small-employer rate, changes every figure.

Private plans

Several programs let an employer substitute an approved private plan. Colorado, Delaware, Maryland and Maine say so in their rules; New Jersey’s labor department lists private plan information for employers⁠1⁠2⁠3⁠6⁠7. A private plan must at least match the state plan’s benefits. In New Jersey, approved private plans must meet the basic provisions required of the State Plan⁠2. In Maryland, private plans set their own rates, but employees cannot be charged more than they would pay under the State Plan⁠3. Employers using a private plan still file wage reports in Maryland⁠3. In Maine an employer with an approved private plan does not remit contributions, but still reports wages quarterly⁠7.

The insured-plan states work the other way: in New York the DBL policy comes from an authorized carrier or NYSIF, or the employer self-insures, and Paid Family Leave is typically a rider on that policy⁠1⁠8. Hawaii requires an insured plan or approval to self-insure⁠1. In those two states the premium is a real insurance quote, priced by the carrier, and it is the only part of this page that behaves like ordinary commercial insurance pricing.

Programs starting or changing

Maryland. Contributions and payroll deductions begin January 1, 2027, with the first remittance due to the State after that; benefits begin by January 3, 2028⁠3. The state labor department’s page describes up to 12 weeks of leave and up to $1,000 a week⁠4. The initial rate is 0.9% of wages up to the Social Security cap. The October 2025 FAQ said an updated actuarial report could change it by May 1, 2026; the program’s later pages still show 0.9% for 2027, but check the department’s rate notice before you set payroll⁠3. Each November from 2027 the department announces the next year’s rate, which current law caps at 1.2%⁠3. Employers may withhold up to 50%, and those with fewer than 15 employees (counting those outside Maryland) remit only 50% and may withhold that⁠3.

Maine. Contributions began January 1, 2025 and benefits are payable for leave on or after May 1, 2026⁠1⁠7. The rate is 1.0% for employers with 15 or more Maine employees (up to half withheld from employees) and 0.5% for smaller ones⁠1.

Delaware. Contributions began in 2025 and benefits on January 1, 2026: up to 12 weeks of parental leave and 6 weeks of medical or caregiving leave in any 24 months, with a weekly maximum of $900 in 2026 and 2027⁠1. For employers with 25 or more Delaware employees, 2025 and 2026 contributions are 0.8% of wages (0.40% medical, 0.08% family caregiving, 0.32% parental); employers with 10 to 24 employees pay only the 0.32% parental rate⁠1⁠6. From 2027 the Department of Labor sets the rate, with the combined total held to 1.00%⁠1.

Minnesota. The 0.88% premium applies for 2026 and 2027 (0.27% family, 0.61% medical) on wages up to the Social Security base, $184,500 in 2026⁠1. Employers pay at least 50% and may deduct up to 0.44%⁠1⁠5. A small-employer rate of 0.66% applies to employers with 30 or fewer employees whose average wage is at or below 150% of the state average⁠1; the statute defines the test by comparing the employer’s average wage with 150% of the state’s average wage in covered employment⁠5.

Massachusetts. Chapter 101 of the Acts of 2026 shifts the employer’s share from the medical to the family portion beginning January 1, 2027⁠1.

What to check before payroll

  1. Count employees the way each program does

    Colorado counts over 20 or more workweeks in the prior year, Maryland counts employees inside and outside the state, and Washington uses ESD’s classification for 2025⁠1⁠3. A threshold error changes the rate for every employee.

  2. Find the wage cap

    Minnesota, Oregon and Washington cap at $184,500 in 2026, the Social Security base; Rhode Island caps at $100,000; New Jersey’s wage bases are $44,800 for employers’ TDI and $171,100 for employees’ TDI and FLI⁠1.

  3. Confirm the deduction is allowed

    In Minnesota deductions must be in equal proportion to premiums paid on each employee’s wages⁠5. New York lets you skip the DBL contribution altogether⁠1⁠8.

  4. Add multi-state staff

    DC covers employees who spend more than 50% of work time in DC, or are based there⁠1. Other states have their own sourcing tests; the state hubs link to each program.

Workers’ compensation, not these programs, covers injuries at work. For the state-by-state rules on that coverage see /requirements/ and the state pages.

Sources

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