What was the maximum withholding amount for State Disability Insurance (SDI) in 2021?

Prepare for the California Real Estate Tax Law Test. Study with comprehensive flashcards and multiple-choice questions, complete with hints and explanations. Get ready to excel in your exam!

The maximum withholding amount for State Disability Insurance (SDI) in 2021 was set based on the taxable wage limit for SDI, which was $128,298. The SDI rate for employees was 1.2%. To find the maximum withholding amount, one would multiply the taxable wage limit by the SDI rate. This calculation results in a maximum withholding amount of $1,539.58. Knowing this figure helps individuals understand the limits of what can be deducted from their wages for disability insurance purposes, making it a crucial aspect of financial and tax planning for California residents.

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