Can you deduct CA SDI tax? 1.19K viewsOctober 10, 2022Banking and Finance 0 Sam Smith11.38K March 29, 2021 0 Comments Spread the loveSpread the love 1 Answer ActiveVotedNewestOldest 0 Blogolu28.38K Posted March 31, 2021 0 Comments Spread the loveSince it is levied as a percentage of your wage income, the California SDI tax is deductible on your federal return. The amount you paid in SDI would be included in line 5, as long as you are deducting income and not sales taxes. Spread the love Login