Are Insurance Settlements Taxable In Texas. This is also true if you are the beneficiary of a payout after a loved one was killed in a workplace accident. The cash value gains are not subject to any taxation unless the policy is surrendered or transferred to another owner — a scenario referred to as a life insurance settlement.
This means if your settlement or judgment is taxable, it will only be federally. The same applies to any financial settlement covering related property damages separate from your car. When you do need to pay texas on a personal injury settlement.