Is Workers Compensation Taxable?

No.

Workers compensation is NOT taxable.

As per page 19 of Pub 525, under header, “Workers Comp,” “Amounts you receive as workmanscomp for an occupational sickness or injury are fully exempt from tax if they are paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act.”

Link: https://www.irs.gov/pub/irs-pdf/p525.pdf