Probably not at the federal level, and definitely not at the state level, since the Texas constitution prohibits an income tax. According to the U.S. Internal Revenue Service, awards and settlements you receive for personal injury are not considered income and are not taxable in most cases. One exception to this is if you recover punitive damages. Because punitive damages are not damages relating to your injury and resultant expense, but rather are damages designed to punish the defendant for particularly reckless behavior, the federal government can subject them to income tax. Still, it’s always good to double-check with a tax preparer or accountant before you file.