What is the DIRT rate in Ireland for 2024 and how does it work?

Deposit Interest Retention Tax (DIRT) is a withholding tax on interest earned on deposits held in Irish financial institutions. Your bank deducts DIRT before paying you interest, so you normally receive interest net of DIRT already.

DIRT rate for 2024:

The DIRT rate is 33% for 2024 — the same rate as Capital Gains Tax and CAT. This rate has been stable since 2020. DIRT replaces income tax and PRSI on deposit interest — you do not pay additional income tax or USC on the gross interest, but you also cannot offset the DIRT against other income.

Example: Your savings account earns €1,000 interest in 2024. Your bank deducts €330 DIRT and credits your account with €670. You have no further Irish tax obligation on that interest.

Is DIRT a final liability? For most Irish residents, yes — DIRT is a final liability and the interest does not need to be declared on a tax return. However, if you are not subject to income tax (e.g., your total income is below the exemption threshold), you can claim a DIRT refund from Revenue.

Exemptions from DIRT:

• Individuals aged 65 or over whose total income is below the income tax exemption limits (€18,000 single / €36,000 married for 2024) can apply to receive deposit interest gross (without DIRT deducted), or claim a DIRT refund.
• Permanently incapacitated individuals are also exempt.
• Deposits held in ARFs, pension schemes, and certain other approved products are exempt.

Foreign deposit accounts: If you hold deposits in foreign banks, the interest is not subject to DIRT but must be declared as income on your Irish tax return and taxed at your marginal income tax rate, plus USC and PRSI.