Is a personal injury settlement taxable?

Personal injury settlements are not taxable, but there are a few exceptions. Personal injury settlements for damages other than physical injuries are taxable — this includes emotional injuries and punitive damage. Personal injury settlements that involve a breach of contract are also taxable. These rules apply to federal taxes and might be different in some states.

UPDATED: Feb 17, 2024Fact Checked

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Luke Fitzpatrick

Insurance Writer

Luke Fitzpatrick covers blockchain trends on Forbes. He has been published in Yahoo! News, Influencive and Tech In Asia. He is a guest lecturer at the University of Sydney, lecturing in Cross-Cultural Management and the Pre-MBA Program.

Insurance Writer

Brandon Frady

Licensed Insurance Agent

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...

Licensed Insurance Agent

UPDATED: Feb 17, 2024

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UPDATED: Feb 17, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

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