Home do you pay tax on lawsuit settlements in canada do you pay tax on lawsuit settlements in canada by Maya Grady Published 3 years ago Updated 2 years ago Notably, any amount of a settlement payment for damages with respect to personal injury or death is exempt from tax. Popular Posts: 1. how did settlement affect the native americans 2. did kyle rittenhouse get a settlement 3. how do attorneys negotiate settlements 4. how does the vanguard settlement fund work 5. what is the optical disk settlement 6. can you insure a house before settlement 7. can you write off debt settlement on your taxes 8. what happens at settlement for the buyer 9. is alimony the same as divorce settlements 10. what are settlement statement fees fha