What is DIRT in Ireland?

DIRT (Deposit Interest Retention Tax) is a tax of 33% automatically deducted by banks and financial institutions from interest earned on deposit accounts, savings accounts, and certain other accounts. The tax is deducted at source — meaning you receive your interest net of tax. You don't need to file a tax return for DIRT unless you're exempt or need to claim a refund.

Who is exempt from DIRT in Ireland?

Individuals aged 65 or over with total income under certain limits can claim exemption from DIRT on deposit interest income up to €1,280 per year (single) or €2,560 (married/civil partners). Non-residents of Ireland can also be exempt by filing form DE1. Certain charities, pension funds, and approved retirement funds are also exempt.

What is the Saver's Credit (first €1 deposit accounts)?

Since 2025, deposit accounts held by individuals aged 18-25 are exempt from DIRT on the first €1 of interest earned per year. While the amount is small, it's designed as a "Saver's Credit" to encourage young people to save. The exemption applies automatically — your bank won't deduct DIRT on interest up to €1. Interest above €1 is taxed at the standard 33% DIRT rate.

Can I get a DIRT refund if I'm a non-resident?

Yes — if you're not resident in Ireland for tax purposes, you can claim an exemption from DIRT by completing form DE1 (Declaration of Non-Residence) and submitting it to your bank or financial institution. Once approved, your interest will be paid gross (without DIRT deducted). If DIRT was already deducted, you can claim a refund from Revenue.

Do I pay DIRT on savings account interest every year?

Yes — DIRT is deducted annually (or when interest is credited to your account). It's not a one-time tax. Each year, your bank calculates the interest earned on your savings, deducts 33% DIRT, and credits the net amount to your account. You can't avoid DIRT by leaving interest to roll up — it's deducted when credited, regardless of whether you withdraw it.

DIRT Guide · 2026

DIRT Tax Ireland 2026: Deposit Interest Retention Tax Explained

DIRT (Deposit Interest Retention Tax) is a 33% tax automatically deducted by Irish banks on interest earned from savings and deposit accounts. While most savers can't avoid DIRT, certain exemptions exist — for over-65s (up to €1,280/€2,560 tax-free interest), non-residents (form DE1), and young savers under the Saver's Credit. Use our DIRT Calculator to see how much tax you're paying on your savings.

Current DIRT Rate 2026

The standard DIRT rate is 33% on all deposit interest earned. This rate has been consistent since 2013. Here's a quick comparison:

Year	DIRT Rate	Notes
2026	33%	Current rate
2013	33%	Increased from 30%
2009	25-28%	Tiered system

How DIRT Is Calculated

Your bank calculates the gross interest on your savings, deducts 33% DIRT, and credits the net amount. Here's how it looks with different savings amounts:

Savings	Interest Rate	Gross Interest	DIRT (33%)	Net Interest
€1,000	1%	€10	€3	€7
€5,000	2%	€100	€33	€67
€10,000	3%	€300	€99	€201
€50,000	3%	€1,500	€495	€1,005

DIRT Exemptions & Reliefs

👴 Over-65 Exemption

If you're aged 65 or over, you can earn deposit interest of up to €1,280 per year (single person) or €2,560 (married/civil partnership) completely DIRT-free. Your total income must be below certain limits to qualify. You apply to your bank using Revenue's form DE1-OV65.

🌍 Non-Resident Exemption

If you're not resident in Ireland for tax purposes, you can earn deposit interest without DIRT deduction. Submit form DE1 (Declaration of Non-Residence) to your bank. Once approved, interest is paid gross. If DIRT was already deducted, you can claim a refund from Revenue via form DIRT 1.

🧑‍🎓 Saver's Credit (Aged 18-25)

Since 2025, deposit account holders aged 18-25 are exempt from DIRT on the first €1 of interest per year. While the amount is small, it's designed to encourage young savers. The exemption is automatic — no form needed. Interest above €1 is taxed at the standard 33% rate.

🏦 Exempt Institutions

Certain accounts held by charities, approved pension funds, PRSAs, and Approved Retirement Funds (ARFs) are exempt from DIRT. The institution must notify the bank of its exempt status. If you're managing such a fund, check with your bank that DIRT isn't being incorrectly deducted.

Real Example: Savings of €5,000 at 3%

Ciarán has €5,000 in a savings account at 3% AERin 2026. He's under 65 and taxed at the standard DIRT rate.

Item	Amount
Savings balance	€5,000
Gross interest @ 3%	€150.00
DIRT deducted @ 33%	-€49.50
Net interest credited	€100.50

Effective return after DIRT: 2.01% — Ciarán loses almost one-third of his interest to DIRT. If he had the €1,280 over-65 exemption, the first €1,280 of interest earned from a much larger deposit would be DIRT-free.

DIRT Over Multiple Years

DIRT is deducted annually, so it compounds against you. Here's how €10,000 grows over 5 years at 3% with DIRT deducted each year:

Year	Starting Balance	Gross Interest	DIRT	Ending Balance
2026	€10,000	€300	€99	€10,201
2027	€10,201	€306	€101	€10,406
2028	€10,406	€312	€103	€10,615
2029	€10,615	€318	€105	€10,828
2030	€10,828	€325	€107	€11,046

* 3% AER assumed. Without DIRT, €10,000 would grow to €11,593 over 5 years — DIRT reduces this to around €11,000.

Frequently Asked Questions

Is DIRT the same as income tax on savings?

DIRT is a final liability tax — it's deducted at source and satisfies your tax obligation on deposit interest. You don't need to declare deposit interest on your income tax return unless you're a higher-rate taxpayer who may owe additional tax (though this is rare since DIRT is 33%, which equals the higher rate of income tax). For most people, DIRT is the final tax.Calculate your DIRT →

Can I claim back DIRT if my total income is below the tax threshold?

Yes — if your total income (including gross deposit interest) is below your standard rate cut-off point and tax credits, you can claim a refund of DIRT. This is most common for students, low-income individuals, and retirees with small pensions. File a Form 12 or Form 11 to claim your refund. Revenue will refund the DIRT deducted above your tax liability.Calculate your DIRT →

Does DIRT apply to credit union accounts?

Yes — credit unions deduct DIRT on dividends and interest paid on members' savings accounts at the same 33% rate as banks. The credit union withholds DIRT before crediting the dividend to your account. The same exemptions (over-65, non-resident, Saver's Credit) apply to credit union accounts as well.Calculate your DIRT →

What about DIRT on joint accounts?

For joint accounts, DIRT is deducted at source at 33%. The over-65 exemption applies per person — so if a married couple aged 67 and 65 have a joint account, they can each use their €1,280 exemption (€2,560 total) against the interest earned. The bank needs each person to submit a separate DE1-OV65 form.Calculate your DIRT →

Do I pay DIRT on foreign bank accounts?

If you're Irish-resident and hold a foreign bank account, you are liable to Irish DIRT on the interest (if not already taxed abroad). Many countries have automatic exchange of information (CRS) with Ireland. You must declare the interest on your Irish tax return (Form 12 or 11) and pay DIRT at 33%. You may be able to claim a foreign tax credit if tax was already deducted in the source country.Calculate your DIRT →

DIRT Tax Ireland 2026: Deposit Interest Retention Tax Explained

Year

DIRT Rate

Notes

2026

33%

Current rate

2013

33%

Increased from 30%

2009

25-28%

Tiered system