Generally speaking personal injury settlements are not taxable, however there are important exceptions. You should consult with a CPA or a personal injury attorney concerning the tax consequences of your personal injury settlement.
Disclaimer: Information provided on this site is NOT formal legal advice. It is generic legal information. Under no circumstances should the information on this site be relied upon when deciding the proper course of a legal action. Always get a formal case evaluation from a licensed attorney if you think you might have a personal injury lawsuit.