Quick answer
- Revenue states that DIRT is currently deducted at 33% from total deposit interest paid to Irish-resident individuals.
- DIRT applies to the interest, not to the underlying savings balance.
- Deposit interest must be included on the appropriate Income Tax Return using the gross interest before DIRT.
- Age, income, incapacity, residence or the source of the account can change the treatment, so use the relevant Revenue route.
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On this page
What DIRT taxes — and what it does not
Deposit Interest Retention Tax is deducted from deposit interest paid or credited to relevant accounts. It does not take 33% of the savings balance. For an Irish-resident individual with €10,000 earning 3% gross interest for a full year, the simplified calculation is:
| Step | Calculation | Amount |
|---|---|---|
| Gross interest | €10,000 × 3% | €300.00 |
| DIRT at 33% | €300 × 33% | €99.00 |
| Net interest | €300 − €99 | €201.00 |
| Ending balance | €10,000 + €201 | €10,201.00 |
A real account may calculate or credit interest daily, monthly or annually, and the balance may change during the year.
Gross rate, AER and after-DIRT return
| Figure | What it tells you |
|---|---|
| Gross rate | The interest rate before tax. |
| AER | An annualised comparison that reflects compounding. |
| Gross interest | The euro interest before DIRT. |
| After-DIRT interest | The planning amount retained after applying the relevant DIRT assumption. |
Do not simply multiply an AER by 67% to model a multi-year account and assume perfect accuracy. Interest-crediting dates, changing balances and compounding on net interest can create a different result. The Savings Goal Calculator simulates monthly planning values and labels them as estimates.
How deposit interest is declared
Revenue says deposit interest should be included on the Income Tax Return using the gross interest before DIRT. A self-assessed taxpayer includes it on Form 11. A PAYE taxpayer with taxable non-PAYE income below €5,000 can use the myAccount Income Tax Return route; at €5,000 or more, Revenue says self-assessment registration and Form 11 are required.
- Keep the annual interest certificate or statement.
- Record gross interest and DIRT separately.
- Use the return route that matches your tax status and non-PAYE income.
- Keep evidence for the return and any refund or exemption claim.
Who may be exempt or due a refund?
Revenue lists specific conditions under which interest can be received without DIRT after the required declaration. These include a person aged 65 or over whose total income, including interest, is below the annual exemption limit, and a person who is permanently incapacitated because of a physical or mental disability. Certain protected-payment cases are also listed by Revenue.
A refund may arise where DIRT was already deducted but the person later satisfies a Revenue refund condition. Eligibility is not automatic from age alone; income and declaration requirements matter. Use Revenue’s current form and instructions rather than relying on an old account setting.
Foreign accounts and non-residence need a separate check
Irish financial institutions normally deduct DIRT from relevant Irish deposit interest. Interest from an account in another EU Member State must be declared and is subject to the current DIRT rate; Revenue warns that a higher 40% rate can apply if it is not returned on time. Non-EU deposit income can have different treatment depending on residence, domicile and marginal rate.
A non-resident account holder may be able to prevent deduction or claim a refund in specified circumstances after completing the required declaration. Do not apply the standard Irish-account shortcut to a foreign account without checking the current Revenue page.
Frequently asked questions
What is the DIRT rate in Ireland in 2026?
Revenue states that the current DIRT rate is 33% on total deposit interest paid to Irish-resident individuals.
Is DIRT charged on my full savings balance?
No. DIRT is charged on relevant deposit interest, not the underlying capital balance.
Do I declare interest before or after DIRT?
Revenue says to enter the gross interest payment before DIRT on the appropriate Income Tax Return.
Does my bank deduct DIRT automatically?
Irish financial institutions generally deduct DIRT from relevant interest paid or credited to Irish-resident accounts. Foreign accounts and exempt statuses require separate handling.
Are people over 65 automatically exempt from DIRT?
No. Revenue also applies an annual income condition and requires a declaration. Check the current exemption limit and process.
Can a permanently incapacitated person be exempt?
Revenue lists permanent physical or mental incapacity as an exemption category, subject to the required declaration and conditions.
Can I claim back DIRT already deducted?
Possibly, if a Revenue refund condition applies. Examples include qualifying after age 65, incapacity or deduction before an approved exemption took effect.
How is interest from an EU savings account taxed?
Revenue says it must be declared and the current DIRT rate applies; late disclosure can trigger a higher rate. Check the current foreign-deposit guidance.
Is DIRT the same as Deposit Guarantee Scheme protection?
No. DIRT is a tax on interest. The DGS is a separate protection scheme for eligible deposits if a participating institution fails.
Sources & references
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