DIRT (Deposit Interest Retention Tax): the tax on savings interest

Banks, credit unions and An Post deduct 33% tax from interest before paying it. No USC is due, PRSI sometimes is, and the interest goes on your return.

Deposit Interest Retention Tax (DIRT) is income tax on the interest your savings earn. The bank, building society, credit union or An Post takes it from each interest payment and pays it to Revenue. So what you see credited is the interest after tax.

The rate

DIRT is 33% of the interest, whatever your income. It applies to ordinary deposit and savings accounts, fixed-term accounts, interest linked to an index and bonus interest. Credit union deposit interest and share account dividends are also subject to DIRT (Citizens Information).

An example

€20,000 in a fixed-term account at 2.5% a year for 3 years, with interest credited once a year and left in the account:

In the first year the account earns €500.00 and DIRT takes €165.00. Because tax comes out each time interest is credited, only the interest after DIRT goes on earning.

A final tax, with two exceptions

For most people DIRT is the end of it: there is no more income tax to pay on the interest, and no USC. But:

• PRSI may be due on the interest in some circumstances. For example, it may be due if you are a chargeable person (someone who files their own tax return).
• If you file a tax return, the interest goes on it, as the full amount before DIRT. DIRT-taxed interest doesn't on its own mean you have to file one.

Declaring deposit interest

Are you a PAYE worker filing a return, with income outside PAYE (deposit interest included) under €5,000? Use Form 12 in myAccount. Choose ‘Review your tax for the previous 4 years’ and request a Statement of Liability (Revenue's end-of-year summary) for the year. Then under Non-PAYE Income select ‘Deposit Interest Received’. If it is €5,000 or more, register for self-assessment and file Form 11. Irish deposit interest and credit union dividends go under ‘Irish Other Income’ (Tax and Duty Manual 08-04-12).

Your bank must give you a statement of the interest before tax and the DIRT taken if you ask for it. It also reports interest over €300 to Revenue each year, so the figures should match.

Who doesn't pay it

Some people can have interest paid without DIRT or claim it back. They include people aged 65 or over on low incomes and people who are permanently incapacitated. Non-residents can too. See DIRT exemptions and refunds. First-time buyers can also get DIRT back under Help to Buy.

To see the interest and DIRT on your own savings, year by year, use the DIRT calculator.

Work it out

• DIRT on savings interest →
• Savings interest after DIRT →
• Savings account, ETF or shares? →

Sources

• Revenue: Deposit interest: DIRT is a final liability, no USC on deposit interest (checked 16/10/2026)
• Revenue: What DIRT rate is applicable? (33% on deposit interest) (checked 25/10/2026)
• Revenue: How do you declare deposit interest? (checked 16/10/2026)
• Revenue: Who is exempt from DIRT? (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.