DIRT Tax Calculator Ireland 2026

What Is DIRT and How Is It Calculated?

Deposit Interest Retention Tax (DIRT) is a withholding tax charged on interest earned in Irish bank and building society accounts. Introduced to ensure that deposit income is taxed at source, DIRT is deducted by your financial institution before interest is credited to your account. For 2026, DIRT is charged at a flat rate of 33% on all deposit interest, regardless of your other income or tax rate band. This means if your savings account earns €1,000 interest in a year, the bank retains €330 as DIRT and pays you only €670.

DIRT is not the same as income tax — it is a separate withholding tax with its own rate and rules. However, since 2020, DIRT and income tax on deposit interest have been aligned: if your marginal income tax rate is 40%, you do not owe additional tax on DIRT-deducted interest (since 33% DIRT plus 4% PRSI already brings the combined charge close to the top marginal rate). If your marginal rate is 20%, DIRT is more than your standard liability, but Revenue does not refund the difference for most taxpayers.

PRSI on Deposit Interest

Since 2014, deposit interest is also subject to PRSI at 4% for most taxpayers. Unlike DIRT, PRSI is not deducted at source — it must be declared and paid via self-assessment or through your annual tax return on Revenue myAccount. PRSI on unearned income applies to individuals under 70 who do not hold a full medical card and whose annual deposit interest exceeds €100. For 2026, the combined effective tax on deposit interest for a standard taxpayer (DIRT 33% + PRSI 4%) is 37%. This calculator shows both figures so you know your full liability.

First-Time Buyer DIRT Exemption

First-time buyers can reclaim DIRT deducted from a dedicated savings account used to fund their first home purchase. The exemption covers interest earned in the 4 years before completion, provided the account was held with a qualifying institution and the property becomes your principal private residence. Couples buying together can each claim the exemption on separate accounts. The refund is claimed through Revenue after you complete the purchase — this calculator flags whether you may qualify so you can plan ahead.

Senior and Low-Income DIRT Exemptions

Individuals aged 65 or over (or whose spouse is aged 65+) can apply for a DIRT exemption if their total annual income is below the Age Exemption Limit — €18,000 for a single person or €36,000 for a married couple in 2026. The exemption is granted in advance by completing Form DE1 through Revenue; once approved, your bank pays interest gross. Similarly, individuals who are permanently incapacitated may also qualify for a DIRT exemption. Standard PAYE workers overpaying DIRT can claim refunds via myAccount on Revenue.ie.