Deposit Interest Retention Tax (DIRT)

If you save an amount of money (a deposit), you may get paid an annual rate of interest on it by your bank or financial service provider.

The interest you get is taxable. The tax is called Deposit Interest Retention Tax (DIRT).

DIRT is charged at 33% on all interest payments. (In 2019, the rate was 35%.)

Credit union deposit interest and share dividends are subject to DIRT.

DIRT is deducted before the interest is paid to you. You are entitled to get a statement of the DIRT deducted if you ask for it.

If you have paid DIRT, you do not have to pay any further income tax or Universal Social Charge on the interest, but you must declare the interest as income if you are making an income tax return.

In some circumstances, you may have to pay PRSI on deposit interest.

DIRT does not apply to interest on deposits owned by:

• Companies that are liable to corporation tax
• Charities
• People not resident for tax in Ireland (see also 'non-resident accounts’ below)
• Revenue-approved pension schemes

You may qualify for a refund of DIRT or to have your deposit interest paid without a deduction of DIRT. If you qualify, you must apply for a refund or exemption.

People aged over 65

You can get your deposit interest paid without the deduction of DIRT, or you can claim a DIRT refund, if you are over 65 and:

• Your income is less than the low income exemption limits for people aged over 65 or
• Your tax credits for the year (including your spouse's) amount to more than the tax that would be due on your (and your spouse's) income for the year

Joint accounts can qualify if the account holders are spouses or civil partners.

First-time buyers

If you are a first-time buyer who either buys or self-builds a new residential property between 19 July 2016 and 31 December 2024, you may be entitled to claim a refund of income tax and DIRT you have paid over the previous 4 tax years. Find out more about the Help to Buy Scheme.

People with disabilities

You can get your deposit interest paid without the deduction of DIRT, or get a refund, if:

• You are permanently incapacitated from maintaining yourself and
• Your tax credits for the year (including your spouse's) amount to more than the tax that would be due on your (and your spouse's) income for the year

You can get more information on the DIRT exemption for permanently incapacitated individuals from Revenue.

Non-resident accounts

If you are not resident in Ireland for tax, you may get a refund of DIRT that has been deducted from your Irish deposit interest. To get a refund of DIRT, Ireland must have a double taxation agreement with the country you are resident in. DIRT will be refunded under the terms of that agreement. Fill in IC5 form (pdf) to apply for a refund of DIRT.

If you are not resident, and do not pay tax, in Ireland, you may get your Irish deposit interest paid without the deduction of DIRT. You do not have to be a resident of a country that has a double taxation agreement with Ireland to apply for a DIRT exemption. You should contact your financial institution to find out if you can be exempt from paying DIRT. You will have to complete a Non-Residence Declaration.

Complete Form 54 Claims (pdf) to apply for a refund of DIRT if you are:

• Aged over 65 or
• Permanently incapacitated or
• A guardian or trustee of someone who is permanently incapacitated

Send the completed form to your local Revenue office.

Exemption

You can apply to have your deposit interest paid without the deduction of DIRT:

• If you are aged over 65 years of age, you must complete form DE1 (pdf) and return it to your financial institution (not Revenue)
• If you are permanently incapacitated, or a trustee of a special trust for a permanently incapacitated person, you must complete form DE2 (pdf) and return it to Revenue