Deposit Interest Retention Tax
Financial service providers such as banks offer accounts where you can save a sum of money (a deposit) for which they will pay you an annual rate of interest in return, usually as a percentage of the deposit.
The interest you receive is subject to a tax called Deposit Interest Retention Tax (DIRT).
Since 2020, DIRT is charged at 33% on all interest payments. (In 2019, the rate was 35%.)
DIRT is deducted before the interest is paid to you. If you request it, you are entitled to get a statement of the amount of DIRT deducted from your interest. If you receive annual interest payments (or similar profit-type payments) of over €300, your bank, credit union or An Post must automatically report this to Revenue.
If you have paid DIRT you do not have to pay any further income tax or Universal Social Charge on the interest, but the interest is declared as income if you are making a tax return. However,in some circumstances, you may have to pay PRSI on deposit interest you have received.
DIRT does not apply to interest on deposits owned by:
- Companies that are liable to corporation tax
- People not resident for tax in Ireland (see also below)
- Revenue-approved pension schemes
Exemptions and refunds
Certain people may qualify for a refund of DIRT or may have their deposit interest paid without the deduction of DIRT. If you qualify, you must apply to have your interest paid without the deduction of DIRT - see 'How to apply' below.
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. You can read more about the Help to Buy incentive.
If you bought or self-built your home between 14 October 2014 and 31 December 2017, you may be entitled to claim a refund of DIRT if you were a first-time buyer. You can read more information on the First Time Buyer Relief on revenue.ie.
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 (including your spouse's or civil partner's income) is less than the low income exemption limits for people aged over 65 or
- Your tax liability (including your spouse's or civil partner's income) for the year is less than your tax credits (including your spouse's) for that year.
Joint accounts can qualify if the account holders are spouses or civil partners.
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
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. A non-resident person does 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.
Credit union share dividends and deposit interest paid to members are subject to DIRT.
Before 2014 certain types of credit union accounts were not subject to DIRT. A tax exemption applies to special term share credit union accounts opened in the period 1 January 2002 to 15 October 2013.
You can get more information from Revenue on the Taxation of Credit Union Dividends and Interest (pdf).
How to apply for a refund or exemption
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.
You can apply to have your deposit interest paid without the deduction of DIRT: