Dáil Éireann Debate, Thursday - 19 February 2026
259. Deputy John Lahart asked the Tánaiste and Minister for Finance whether he will consider increasing the DIRT exemption thresholds and raising the income limits for liability, including the current €36,000 threshold for a married couple or civil partners (details supplied); and if he will make a statement on the matter. [13705/26]
View answerThe Deputy will be aware that Deposit Interest Retention Tax (DIRT) is a withholding tax that is deducted by Irish financial institutions on deposit interest paid or credited on the deposits of Irish residents.
Since 1 January 2020, the DIRT rate is 33%. DIRT is a final liability tax. This means that an individual has no further tax liability in respect of the deposit interest earned. The Deputy should note that the rate of DIRT and its structures was most recently examined as part of the Tax Strategy Group exercise in 2024. This paper is available on my Department’s website.
Deposit interest is specifically excluded from the Universal Social Charge. Individuals may however have a liability to Pay Related Social Insurance (PRSI) in certain circumstances.
There are various exemptions from the obligation to deduct DIRT on deposit interest paid or credited by financial institutions. For instance, interest is exempted from DIRT where an account is held by an individual, or their spouse or civil partner, aged 65 years or older, and their total income in a year (including interest earned) is below the relevant income tax annual age exemption limit.
The annual age exemption limits are €18,000 in the case of a single person and €36,000 in the case of a married couple or civil partnership. The relevant income thresholds may be increased further if the individual has a qualifying child. These exemption limits were considered as part of the Review of the Personal Tax System carried out by my Department in 2023. The review is also available on my Department’s website. Further information on the DIRT exemption, including how to claim it, is available on the Revenue website.
As with all taxes, DIRT is subject to ongoing review. This involves the consideration and assessment of the rate of DIRT and the relevant exemptions from DIRT as part of the annual Budget and Finance Bill process, as well as the wider tax policy context.
