Deposit Interest Retention Tax is deducted at 33% by Irish banks, building societies, and credit unions before interest reaches your account, but several groups are exempt. If you want to know who is exempt from DIRT tax in Ireland, the categories are: people aged 65 or over whose income falls under the exemption limit, permanently incapacitated individuals, non-residents who meet all the required conditions, registered charities, and companies or pension schemes already taxed on the interest through corporation tax.1Revenue Irish Tax and Customs. Deposit Interest
People Aged 65 or Over on Modest Incomes
Being 65 alone is not enough. You qualify only if your total income for the year stays below the age exemption limit. For 2026, that limit is €18,000 for a single person, widow, widower, or surviving civil partner, and €36,000 for a married couple or civil partners where at least one spouse is 65 or over.2Revenue Commissioners. Form DE1 2026 – Application to Have Deposit Interest Paid Without Deduction of DIRT
Total income means gross income from all sources, including the State Pension and the deposit interest itself.3Revenue Irish Tax and Customs. Who Is Exempt From DIRT? If your income rises above the limit during the year, you must tell your bank straight away, and the account switches back to a DIRT-bearing account from the date the bank is notified.
To claim the exemption, complete Form DE1 and give it to your financial institution, not to Revenue. The form asks for your name, address, PPS Number, date of birth, and the IBAN and BIC of the account, and includes an undertaking to notify the bank if you stop meeting the conditions.4Irish Statute Book. Taxes Consolidation Act 1997, Section 263A – Declarations to a Relevant Deposit Taker Relating to Deposits of Certain Persons
Permanently Incapacitated Individuals
Permanent incapacity qualifies you for the exemption at any age. A spouse or civil partner acting on your behalf, or a trustee of a special trust set up for you, can also claim it.5Revenue Commissioners. Form DE2 2026 – Application to Have Deposit Interest Paid Without Deduction of DIRT
The form is Form DE2, and it goes to Revenue rather than to your bank. This trips people up, because the over-65 form (DE1) goes the other way. Medical evidence supporting the claim will usually be required.6Citizens Information. Deposit Interest Retention Tax
Non-Residents
If you live outside Ireland for tax purposes, you can receive Irish deposit interest gross, but you have to meet all four of Revenue’s conditions:
- You are not resident in Ireland. Residency is triggered by 183 days or more here in a tax year, or 280 days or more across the current and previous tax year combined.7Revenue Irish Tax and Customs. How to Know if You Are Resident for Tax Purposes
- You have signed a non-resident declaration for the bank, giving your name, principal place of residence, and country of residence.8Irish Statute Book. Taxes Consolidation Act 1997, Section 263 – Declarations Relating to Deposits of Non-Residents
- You do not otherwise pay tax in Ireland.
- You do not hold the account jointly with an Irish resident. One resident co-holder kills the exemption for the whole account.3Revenue Irish Tax and Customs. Who Is Exempt From DIRT?
The declaration also includes an undertaking that you will tell the bank if you become resident in Ireland.
Charities, Companies, and Pension Schemes
Registered charities can hold deposit accounts free of DIRT, provided the interest is applied only to charitable purposes. The charity gives the bank a written declaration confirming its recognition by the Revenue Commissioners and identifying each person or entity entitled to the exemption.9Irish Statute Book. Taxes Consolidation Act 1997, Section 266 – Deposits of Charities
Companies within the charge to corporation tax, and pension schemes, are also exempt because their interest income is taxed elsewhere in the system. For a company, the auditor certifies the declaration and confirms the interest will go into taxable profits. For a pension scheme, the declaration comes from the scheme administrator or trustee, depending on the type of scheme.10Irish Statute Book. Taxes Consolidation Act 1997, Section 265 – Deposits of Companies and Pension Schemes
Reclaiming DIRT You Should Not Have Paid
If DIRT was deducted when you were entitled to the exemption, you can claim it back from Revenue on a Form 54 Claims sent to your local Revenue office.11Revenue Irish Tax and Customs. Can You Claim a DIRT Refund? Older account holders who did not realise they qualified are the group most likely to have money sitting unclaimed. The refund window under the Taxes Consolidation Act runs back several years from the end of the relevant tax year, so an overpayment from a while ago is still worth checking.12Irish Statute Book. Taxes Consolidation Act 1997, Section 865 – Repayment of Tax
What DIRT Covers and What It Doesn’t
Being liable for DIRT is not the same as being exempt from declaring the interest. If you file an income tax return, you still list the deposit interest as income even after the 33% has been taken.6Citizens Information. Deposit Interest Retention Tax DIRT settles your income tax and Universal Social Charge on that interest, so USC is not applied on top.13Citizens Information. Universal Social Charge (USC) PRSI can be a separate matter: depending on your overall income and PRSI class, PRSI may still be due on the interest. And if you are exempt from DIRT entirely, the gross interest remains income for tax purposes and belongs on your annual return.