Do I Pay Taxes On My Workers’ Compensation Benefits? No, workers’ compensation benefits are not taxed. Likewise, any related workers’ compensation settlement is not taxed. Related Who Pays for Medical Bills After a Car Accident? June 10th, 2025 In "Car Accident" Maximizing Your Workers’ Comp Benefits May 5th, 2025 In "Workers’ Compensation" Workers’ Compensation Quiz: True or False? February 25th, 2025 In "Workers’ Compensation"