📊 DIRT Tax 2025: Quick Facts
- DIRT rate: 33% on deposit interest
- Deducted by: Your bank automatically
- Who's exempt: Over-65s with income under €18,000 (single) or €36,000 (married)
- Can you claim back: Yes, if you qualify for exemption
- Claim period: Current year + 4 years backdated
Deposit Interest Retention Tax (DIRT) is the tax automatically deducted by Irish banks on interest earned from savings accounts, deposit accounts, and certain other investments. At 33%, it's one of the higher tax rates in Ireland—but many people don't realise they may be entitled to claim it back.
At MyTaxRebate.ie, our specialists review your full tax situation to identify all refunds you're entitled to, including DIRT exemptions. If you've been paying DIRT but qualify for exemption, you could claim back several years' worth of deductions.
Think you might be exempt from DIRT? Let us check for free
Start My Free Tax Review →What is DIRT?
DIRT stands for Deposit Interest Retention Tax. It's a tax on the interest you earn from:
- Savings accounts – regular or demand savings
- Deposit accounts – fixed-term deposits
- Credit union shares – dividends on shares
- Certain bonds – government and corporate bonds held through Irish financial institutions
Your bank or financial institution deducts DIRT automatically before paying you the interest. So if you earn €100 in interest, you only receive €67—the bank sends the other €33 directly to Revenue.
Current DIRT Rate (2025)
The DIRT rate for 2025 is 33%. This rate has been consistent for several years after being reduced from 41% in previous years.
| Year | DIRT Rate |
|---|---|
| 2025 | 33% |
| 2024 | 33% |
| 2023 | 33% |
| 2022 | 33% |
Who is Exempt from DIRT?
Certain individuals can claim exemption from DIRT or claim back DIRT that has been deducted:
Over-65s with Low Income
You're exempt from DIRT if you are:
- Aged 65 or over, and
- Your total income (including the interest) is below:
- €18,000 for a single person
- €36,000 for a married couple/civil partners
Permanently Incapacitated Individuals
If you're permanently incapacitated and your total income is below the thresholds above, you may also qualify for DIRT exemption regardless of age.
Charities and Non-Profits
Registered charities and certain qualifying organisations are exempt from DIRT on their deposit interest.
💡 Important
The exemption is based on your total income, not just your PAYE income. This includes pensions, rental income, social welfare payments, and the deposit interest itself.
How to Claim DIRT Back
If you qualify for DIRT exemption but your bank has already deducted it, you can claim the tax back. Here's how:
Option 1: Let MyTaxRebate.ie Handle It
Our specialists can review your eligibility and handle the entire claim process. We check:
- Whether you meet the age and income requirements
- How much DIRT has been deducted over the past 4 years
- Any other tax reliefs you may have missed
Option 2: Claim Directly with Revenue
You can also claim through your Revenue myAccount by:
- Completing Form 54D (DIRT refund claim form)
- Getting a DIRT certificate from your bank showing interest paid and DIRT deducted
- Submitting to Revenue with supporting documentation
Prevent Future DIRT Deductions
Once you confirm your exemption, you can complete Form DE1 and give it to your bank. This tells them not to deduct DIRT from your interest in future years.
DIRT vs Income Tax
An important distinction: DIRT is a final tax. This means:
- You don't declare deposit interest on your annual tax return (unless you're filing a Form 11)
- DIRT at 33% is the only tax due on this income
- You don't pay additional USC or PRSI on deposit interest
This actually makes DIRT favourable compared to other investment income, which may be subject to income tax at 40% plus USC.
Example: How Much Could You Claim Back?
Let's say you're 68 years old with a total income of €15,000 (including your pension). You have €50,000 in a savings account earning 3% interest (€1,500/year).
| Item | Amount |
|---|---|
| Annual interest earned | €1,500 |
| DIRT deducted (33%) | €495 |
| × 4 years backdated | ×4 |
| Potential refund | €1,980 |
Since your total income (€15,000 + €1,500 = €16,500) is below €18,000, you're exempt from DIRT and entitled to claim back the full €1,980.
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Frequently Asked Questions
Is DIRT charged on all bank accounts?
DIRT applies to interest-bearing accounts. Current accounts that don't pay interest are not subject to DIRT. However, even minimal interest on a current account would be subject to the tax.
Do I need to declare DIRT on my tax return?
Generally no. DIRT is a final tax for most PAYE workers. However, self-employed individuals filing Form 11 must declare all income including deposit interest.
Can working-age people avoid DIRT?
The age exemption only applies to those 65+. Working-age people generally cannot avoid DIRT, though certain pension and long-term savings accounts may have different tax treatment.
How far back can I claim DIRT?
You can claim DIRT back for the current year plus the previous 4 tax years. If you've been paying DIRT incorrectly for longer, you can only recover the most recent 4 years.
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Our specialists check for DIRT exemption plus all other reliefs including rent credit, medical expenses, and more.
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