How should South Dakota residents interpret the result?

South Dakota is commonly described as not applying a broad state wage income tax, so the result is mainly about the federal deduction. Still, confirm any state-level details on the South Dakota tax agency website.

South Dakota Overtime Tax Calculator 2025 | Federal OBBBA Savings Estimate

Estimate your federal overtime premium deduction (and possible tax impact) under the 2025 proposal, with South Dakota-specific context and official sources.

South Dakota context:

This calculator estimates a potential federal overtime-related savings scenario under the 2025 proposal. State and local tax outcomes depend on South Dakota rules and your full household picture, so use the official sources below to validate what applies to you.

Model assumptions used in this calculator

Overtime “premium” is modeled as 0.5× your hourly rate per overtime hour (the time-and-a-half premium portion).
Annual cap: 2,500 (single) / $25,000 (married filing jointly).
Phase-out starts at MAGI 50,000 (single) / $300,000 (MFJ), reducing the deductible amount by 00 per ,000 over the threshold.
If MAGI is blank, it’s estimated from your weekly pay and overtime scenario.

How to Use This Estimate for Planning

Overtime can materially change take-home pay in South Dakota, especially for agriculture processing, services, and seasonal work. This tool focuses on the federal side of the proposal: it models a capped overtime “premium” amount and then applies an income phase-out based on filing status and estimated household income (MAGI). The output is an estimate meant to help you compare scenarios (for example: “What if I work 6 more OT hours per week?”), not a guarantee of your final tax filing result.

If you leave MAGI blank, the calculator estimates it from the entered weekly pay and overtime scenario. If you know your approximate household income, entering MAGI can reduce surprises because phase-out behavior is driven by that number. Either way, remember that real returns can differ based on deductions, credits, and how a final law is written and implemented.

What to confirm (and where)

South Dakota Department of Revenue: state income tax and withholding rules (if applicable), definitions, and current guidance.
IRS tools: whether a W-4 update makes sense after you model a scenario here.
Your pay stub: how overtime is computed and reported for your specific job (rules can vary by employer and pay type).

A practical workflow is: (1) model a few overtime scenarios here, (2) check official guidance, and (3) only then adjust withholding if you’re confident the change is appropriate. If you want to share your scenario with a spouse or coworker, use the Share/Copy buttons to include the exact inputs in the link.

What to double-check in South Dakota

South Dakota is often described as not imposing a broad-based tax on wage income. Your result here is a federal-only estimate, so it’s worth double-checking how your pay is taxed and withheld in practice.

Check the latest South Dakota guidance on the official tax agency site.
Re-check your federal withholding with the IRS Form W‑4 guidance if your overtime pattern changes.

More context: Guide: States with no broad wage income tax.

South Dakota FAQ

Quick answers to common questions about the federal overtime deduction estimate for South Dakota.

Does this estimate include South Dakota state income tax rules?

No. This tool estimates a federal deduction related to overtime premium pay. State rules can differ. For South Dakota-specific guidance, review the South Dakota tax agency website.

Where can I verify official information for South Dakota?

Use IRS resources for federal withholding and forms, and the South Dakota tax agency for state filing guidance and updates.

Will South Dakota automatically follow federal changes?

Not always. Some states conform to federal rules, while others decouple or adopt changes differently. Check official updates from the South Dakota tax agency.

Does South Dakota generally tax wage income at the state level?

Many summaries describe South Dakota as not levying a broad-based tax on wage income, but details can vary and change. Verify what applies to you on the South Dakota tax agency site and adjust federal withholding using IRS guidance if needed.

Before you rely on this estimate, check whether South Dakota conforms to federal deductions and how your payroll defines overtime earnings. If needed, validate withholding using IRS resources and review guidance from the South Dakota tax agency.

State-specific scenario for South Dakota

Scenario: in South Dakota, the payroll impact you see will mostly come from federal rules and how your employer withholds. If your paychecks look inconsistent, it’s often a withholding setting issue rather than the estimate itself. For official guidance, compare your inputs against the IRS Withholding Estimator and your official South Dakota tax agency.

How to use this estimate in South Dakota

Three common use cases to help you decide what to check next (federal estimate only; state rules can differ).

Use case 1: paycheck withholding sanity‑check

If your overtime changes often, use this result as a starting point and then sanity‑check your paycheck withholding with the IRS Withholding Estimator. To see what inputs drive the number, review Methodology.

Use case 2: moved, part‑year, or multi‑state work

If you work in another state, moved recently, or have a second job, state filing rules can still matter even if wage income is often described as untaxed locally. Start with the official South Dakota guidance, then use our state checklist. See how we use sources.

Use case 3: planning & documentation

For planning, keep the pay periods you modeled and your employer’s overtime definition. Read limitations and the disclaimer; if anything feels unclear, use Contact to suggest an official source.

Mini how-to by work situation in South Dakota

A federal-only estimate can still help planning. In South Dakota, wages are generally not subject to a broad state income tax, so your planning focus is often federal withholding—still verify any state or local rules that might apply on the official state page. Use official tools like the IRS Withholding Estimator, review Form W‑4, and check official South Dakota tax guidance.

Hourly / shift workers

If your overtime hours fluctuate week to week, use the IRS Withholding Estimator after a typical pay period so your federal withholding stays aligned with your current pattern. Then review your Form W‑4 choices and keep recent pay stubs handy when you compare results. Because South Dakota generally doesn’t tax wages broadly, the main moving parts are federal withholding—still confirm any state/local requirements. Official links: IRS estimator, Form W‑4, South Dakota tax guidance.

Salaried with overtime

For salaried roles with periodic overtime, the biggest lever is usually withholding accuracy rather than the label on your salary. Use the IRS estimator, then decide whether a W‑4 adjustment makes sense and confirm with payroll how supplemental/overtime pay is handled. Because South Dakota generally doesn’t tax wages broadly, the main moving parts are federal withholding—still confirm any state/local requirements. Official links: IRS estimator, Form W‑4, South Dakota tax guidance.

Multiple jobs or job change

If you have more than one job (or you changed jobs mid‑year), withholding can get out of sync quickly. Run the IRS estimator with combined income, then check whether each employer’s withholding settings are consistent with the estimator’s guidance. In South Dakota, there’s generally no broad state wage income tax, so focus on accurate federal withholding and still verify any state/local rules. Official links: IRS estimator, Form W‑4, South Dakota tax guidance.

Official state tax pointers

Use official pages to confirm residency rules, part-year situations, and paycheck withholding.

Use the estimate safely

Treat this as a federal estimate, then verify what actually changes for your paycheck and filing situation.

South Dakota Overtime Tax Calculator (2025)