Ireland DIRT Calculator: Deposit Interest Retention Tax
Work out the Irish DIRT (Deposit Interest Retention Tax) on your savings interest — the tax banks deduct at source from deposit interest — and see how much interest you keep after it.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | DIRT deducted | Gross interest plus DIRT figure |
|---|---|---|
| 33% of €1,000 (€330) | $330.00 | $1,330.00 |
| 33% of €500 | $165.00 | $665.00 |
| 33% of €2,500 | $825.00 | $3,325.00 |
| 41% of €1,000 (older rate) | $410.00 | $1,410.00 |
How This Calculator Works
Enter the gross interest your deposit earns and the DIRT rate (recently 33%). The calculator shows the DIRT deducted; subtract it from the gross interest to get what you actually receive. DIRT is withheld automatically by the bank or financial institution before paying you, so the interest credited to your account is already net of the tax.
The Formula
Percentage Add-On
Rate is the tax or tip percentage applied to the amount
Worked Example
At 33% on €1,000 of gross deposit interest, DIRT of €330 is deducted — leaving €670 net. DIRT (Deposit Interest Retention Tax) is a final tax the Irish bank or credit union withholds at source on interest paid to most resident savers. Because it's deducted automatically and is generally a final liability, most savers don't need to declare the interest separately. Certain people — such as those aged 65+ under an income limit, or the permanently incapacitated — may be exempt and can have interest paid gross.
Key Insight
DIRT is the standard way savings interest is taxed in Ireland, and a few points clarify how it works. It's a withholding tax: the bank, building society, credit union, or other deposit-taker deducts DIRT from your interest before crediting it, so the figure you see in your account is already net — there's normally nothing further to pay or file, since for most savers DIRT is a final tax. The rate has moved over the years (it was as high as 41% in the mid-2010s and has since come down to 33%), so use the rate for the year the interest was paid. Key exemptions this calculator doesn't model: individuals aged 65 or over may receive interest free of DIRT if their total income is below the relevant exemption limit, and permanently incapacitated individuals can also qualify — both typically by completing the appropriate declaration (e.g. form DE1) with their bank so interest is paid gross. First-time buyers have historically had a separate DIRT refund scheme on savings used toward a home, and companies are taxed differently (deposit interest is dealt with under corporation tax, not DIRT). One nuance: in some cases PRSI can also apply to deposit interest for certain individuals, which this calculator ignores. Note too that DIRT applies to Irish deposit interest; interest from foreign accounts is generally taxable but outside the DIRT-at-source system and must be declared. This calculator shows the DIRT deducted and lets you read off the net interest (gross minus DIRT); confirm the current rate, and if you're over 65 within the income limit or otherwise exempt, make the declaration so your interest is paid without DIRT rather than reclaiming it later.
33% DIRT plus 4% PRSI: the effective 37% on Irish deposit interest
DIRT (Deposit Interest Retention Tax) is currently 33% in Ireland — but it's only part of the total tax on interest income. For PAYE workers and self-employed earning at least €5,000/year, PRSI (Pay Related Social Insurance) at 4.1% (Class S 2026) ALSO applies to deposit interest. Combined: 37.1% effective tax on interest.
Concrete example: €10,000 deposit at 3% interest = €300 gross interest. DIRT retained by the bank: 33% × €300 = €99. PRSI owed via tax return: 4.1% × €300 = €12.30. Total tax: €111.30. Net interest kept: €188.70 = 1.89% effective after-tax yield on a 3% deposit.
Note that PRSI on deposit interest is not deducted automatically — it must be self-declared and paid through Form 11 (self-assessed taxpayers) or by amendment of PAYE returns. Many savers underpay PRSI by accident and face later assessments. The PRSI rate has risen recently (3% in 2024, 4% in 2025, 4.1% in 2026) and is scheduled to continue rising — making the DIRT trap progressively worse.
DIRT-free options: First-time buyers and 65+
DIRT-exempt savings exist for specific groups. First-time buyers under 35 saving for their first home through a designated Help-to-Buy account can have interest exempt from DIRT — but only on deposits up to specified limits and only if the savings are eventually used for a qualifying first-home purchase within a defined period.
Over-65s with annual income below €18,000 (single) or €36,000 (married) can elect DIRT-free interest by completing Form 54D Self Cert and providing it to their bank. This removes the 33% DIRT from interest paid out. The exemption is automatic only after the form is filed — banks don't proactively grant it. Many elderly savers overpay because they're unaware.
Permanently incapacitated individuals can also claim DIRT exemption similarly via certified declaration. The exemption is genuine refundable — DIRT already deducted in the current tax year can be claimed back via Form 54D for that year. Documentation requirements are straightforward but easily missed: an elderly couple with €100,000 of deposits at 3% are losing €989 of unnecessary DIRT/year if they haven't filed the form.
Beyond deposit accounts: where DIRT applies and doesn't
DIRT applies to interest from: standard bank deposits and savings accounts, credit union dividends (treated as interest), Irish State Savings (Prize Bonds, Savings Certificates, Savings Bonds — note that the COUPON on State Savings is DIRT-exempt by design; only some products carry DIRT). DIRT does NOT apply to: capital gains from shares (separate CGT regime at 33%), dividends from shares (subject to income tax, USC, PRSI), pension fund interest, ISA-equivalent products (note Ireland has no ISA equivalent — this is one of the reasons Irish savers face higher tax than UK).
Foreign interest income (from non-Irish bank accounts): DIRT doesn't apply, but the same interest is taxed via income tax at marginal rate (20% or 40%) PLUS USC at 0-8% PLUS PRSI 4.1%. For higher-rate taxpayers, that's roughly 52% — substantially WORSE than DIRT-paying Irish bank interest. Moving deposits abroad is fiscally counterproductive for most Irish residents.
Strategic: for higher-rate taxpayers, hold deposits in Irish banks (DIRT 33% > 40% income tax + 4.1% PRSI + 0-8% USC). For lower-rate taxpayers with non-Irish deposits, the income tax regime may be better. For exempt elderly: file Form 54D for DIRT exemption. For long-horizon savings, consider pension contributions (€115k/year limit) or PRSAs — these get income tax relief at marginal rate, far more powerful than DIRT optimization.
After-tax interest yield on Irish deposits 2026
Effective net rate retained after DIRT 33% plus PRSI 4.1% (where applicable). PRSI exempt = the under-€5,000 income earners, and those with no other PRSI liability.
| Deposit | Gross 3% rate | DIRT 33% | PRSI 4.1% | Net interest kept |
|---|---|---|---|---|
| €10,000 | €300 | −€99 | −€12.30 | €188.70 (1.89% yield) |
| €50,000 | €1,500 | −€495 | −€61.50 | €943.50 (1.89% yield) |
| €100,000 | €3,000 | −€990 | −€123 | €1,887 (1.89% yield) |
| €100,000 (over-65 exempt) | €3,000 | €0 (Form 54D) | €0 if low income | €3,000 (3.00% yield) |
PRSI only applies to those with PRSI liability (most workers). Over-65s with income below thresholds, students with no PRSI obligation, and those exempt via Form 54D can save the 4.1% PRSI plus 33% DIRT entirely.
Frequently Asked Questions
How is DIRT calculated?
Multiply your gross deposit interest by the DIRT rate. At 33% on €1,000 of interest, DIRT is €330, leaving €670 net. The bank deducts it at source before paying you, so the interest credited to your account is already after DIRT.
What is DIRT?
Deposit Interest Retention Tax — a tax the Irish bank, credit union, or other deposit-taker withholds at source on interest paid to resident savers. It's deducted automatically before the interest reaches you and is generally a final tax, so most savers don't need to declare the interest separately.
What is the DIRT rate?
Recently 33%. The rate has changed over the years — it peaked at 41% in the mid-2010s before falling — so use the rate for the year your interest was paid. It applies to most deposit interest paid to Irish residents and is withheld by the financial institution.
Can I be exempt from DIRT?
Yes — individuals aged 65 or over with total income below the relevant exemption limit, and permanently incapacitated individuals, can have interest paid gross by completing the appropriate declaration (such as form DE1) with their bank. There have also been DIRT refund schemes for first-time buyers saving toward a home.
Do I need to declare interest after DIRT?
Usually not for Irish deposits — DIRT is generally a final tax deducted at source, so there's nothing more to pay. However, interest from foreign accounts is outside the DIRT system and must be declared, and in some cases PRSI can apply to deposit interest for certain individuals.
References & Authoritative Sources
- Revenue Commissioners — Deposit Interest Retention Tax (DIRT) — official guide · consulted May 31, 2026 · Irish tax authority — current 33% rate, exemption process, Form 54D
- Taxes Consolidation Act 1997 — Sections 256-261 — Statutory basis for DIRT · consulted May 31, 2026 · Primary statute — DIRT framework, exemption categories
- Department of Social Protection — PRSI on investment income — rates and obligations · consulted May 31, 2026 · Social welfare administrator — PRSI rates on deposit interest, self-assessment requirements
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Methodology & Review
DIRT is the tax rate applied to gross deposit interest; the total here is the gross interest plus the tax figure, so the tax (chargeAmount) and the net interest are easy to read off. It models the flat DIRT rate on interest and does not handle exemptions (over-65s, certain low-income savers) or any PRSI that may apply to deposit interest in some cases.
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