California vs New York: paid leave cost compared, 2026
On 25 employees and $2,000,000 of annual payroll, California costs $26,000 in total premium and New York costs $8,640 — a difference of $17,360 a year. The employer’s own exposure differs by more, because the two states split the premium differently.
California
$26,000
total premium on 25 staff and $2,000,000 payroll
- Employer pays
- $0
- Employees pay
- $26,000
- Rate applied
- 1.3%
New York
$8,640
total premium on 25 staff and $2,000,000 payroll
- Employer pays
- $0
- Employees pay
- $8,640
- Rate applied
- 0.432%
Estimates only. Confirm current rates with your state agency before filing or budgeting.
Rules side by side
| California | New York | |
|---|---|---|
| Program | State Disability Insurance / Paid Family Leave | Paid Family Leave |
| Total contribution rate | 1.3% | 0.432% |
| Employer share | 0% | 0% |
| Employee share | 100% | 100% |
| Wage cap per employee | None | $95,349 |
| Small-employer relief | None | None |
| Private plan allowed | Yes | Yes |
| Maximum weekly benefit | $1,765 | $1,229 |
What actually differs
- Who funds it. California is entirely employee-funded, so the employer's cost is administrative only. New York is entirely employee-funded, so the employer's cost is administrative only. Comparing the headline rates alone will mislead you whenever the splits differ this much.
- Where the cost stops. California has no wage cap, so a high-earning team keeps accruing premium all year. New York stops at $95,349 per employee. The gap widens as average wages rise.
- Small-employer treatment. California offers none — the full rate applies from your first employee. New York offers none — the full rate applies from your first employee. If you are near either threshold, check which headcount basis applies before assuming you qualify.
Last verified August 19, 2026Source: Employment Development Department (EDD)
Last verified August 18, 2026Source: NYS Workers’ Compensation Board
Employing in both?
Add California and New York to the multi-state calculator and see the combined figure, with each state’s cap and small-employer rule applied separately.
Calculate both together