Savings
DIRT (tax on savings interest): exemptions, refunds and who gets interest tax-free
Last updated 16 October 2026
People 65 or over on incomes under €18,000 (€36,000 for a couple), and some others, can get interest tax-free or claim the tax back.
DIRT (the tax on savings interest) of 33% is taken from almost all deposit interest. A few groups can have interest paid in full, or get the DIRT back, by making a declaration.
Who qualifies, and which form
| You, or your spouse or civil partner, are | Form | Send it to |
|---|---|---|
| Aged 65 or over in the year, with total income below the exemption limit | Form DE1 | Your bank or credit union |
| Permanently incapacitated, with tax credits above the tax on your income | Form DE2 | Revenue |
| Saving a Mother and Baby Institutions Payment Scheme payment | Form DE3 | Revenue |
| Saving a CervicalCheck relevant payment | Form DE4 | Revenue |
For DE3 and DE4, the money on deposit must come only from that payment. Where you apply to Revenue, Revenue tells the bank. You need a separate form for each account, and a joint account qualifies only if it is held with your spouse or civil partner.
The income limits at 65
Total income for the year, yours and your spouse's, must be under €18,000 for a single person or €36,000 for a couple. Each of the first two dependent children adds €575.00, and each further child €830.00: a couple with three children has a limit of €37,980.00. Count the State Pension, other pensions, deposit interest before DIRT and dividends. Pension contributions you pay come off.
Take a couple aged 70 with income of €32,000 and €30,000 on deposit at 2%. Once the bank has their DE1, the year's interest of €600.00 is paid in full. That is €198.00 more than with DIRT taken.
Refunds
Claim DIRT back on Form 54 Claims, sent to Revenue, if:
- you turned 65, or became incapacitated, during the year;
- your income went over the limit only for a while, or only a little (marginal relief can then give a partial refund);
- it is your first exempt year and the bank deducted DIRT before your form arrived;
- DIRT was taken from interest on a Mother and Baby Institutions or CervicalCheck payment.
Over-65s whose income is above the limit but whose tax credits would cover the DIRT can't use DE1; they claim a refund each year instead. Claims must be made within four years: 2022 claims close on 31 December 2026.
If your circumstances change
Tell your bank (DE1) or Revenue (DE2 to DE4) straight away if things change. That includes your income going over the limit, or a spouse dying when you don't qualify on your own. It also includes someone else becoming an owner of the account. DIRT then applies again from that date.
Non-residents
Say you are not resident in Ireland, pay no Irish tax and have no joint account with an Irish resident. Then the bank can pay interest without DIRT once you make a non-resident declaration. If DIRT was already taken and you live in a country with a tax treaty with Ireland, claim a refund on Form IC5.
The forms are on Revenue's DIRT exemption page. To see what DIRT costs on your savings, use the DIRT calculator.
Work it out
Sources
- Revenue: Who is exempt from DIRT? (checked 25/10/2026)
- Revenue: Form DE1 2026: DIRT exemption for people aged 65 or over (€18,000 / €36,000) (checked 25/10/2026)
- Revenue: Exemption limits for people aged 65 or over (€18,000 single, €36,000 married) (checked 25/10/2026)
- Revenue: Deposit interest: DIRT is a final liability, no USC on deposit interest (checked 16/10/2026)
- Revenue: Four year rule: claims for 2022 must be made by 31 December 2026 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.