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 Do I owe taxes on my Workers’ Compensation (WC) or Personal Injury (PI) Settlement? February 22nd, 2024 In "Car Accident" Recorded Statements: Do I Have to Comply? March 20th, 2024 In "Car Accident" I am working illegally. Can I file for Workers’ Compensation? Can I get fired? January 22nd, 2024 In "Workers’ Compensation"