Is a personal injury settlement taxable?

Typically, the answer to "Is a personal injury settlement taxable?" is no. But there are exceptions. Pain and suffering, medical bills, and payments to cover property damage won't be taxed. But punitive damages, lost wages, accrued interest, breach of contract, and most attorney fees will be taxed. Read on to learn details.

UPDATED: Apr 2, 2024Fact Checked

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

David I. Fuchs

Personal Injury Attorney

For over 30 years, David I. Fuchs, Injury & Accident Lawyer, P.A., has protected the rights of accident victims throughout Florida. He has recovered hundreds of millions of dollars in compensation for clients through settlements and verdicts. His practice area focuses on negligent accidents involving cars, trucks, motorcycles, rideshare vehicles, cruise ships, and other personal injury cases.�...

Personal Injury Attorney

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Apr 2, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption