The government charge a tax on the interest you receive on savings. This tax is known as Deposit Interest Retention Tax or DIRT for short.
Back in 2002 the rate of DIRT was 20%. It was then increased over the following years up to 41% in Jan 2014 in an attempt to try and encourage people to spend rather than save money.
In Budget 2017 there was the first reduction in DIRT since it was introduced – and from Jan 1st 2017 it was cut to 39%. The plan is to drop it by 2% each year for 4 years until it is back down to 33%. So in 2018 it will be 37%
History of DIRT Rates in Ireland
- 41% from 1st January 2014 to 31st December 2016
- 33% from 1st January 2013 to the 31st December 2013
- 30% from the period 1st January 2012 to the 31st December 2012
- 27% from 1st January 2011 to the 31st December 2011
- 25% from 8th April 2009 to the 31st December 2010
- 23% from 1st January 2009 to the 7th April 2009
- 20% from 1st Janury 2002 to the 31st December 2008.