I am nothing close to a tax expert and I would not give anyone specific tax advice, but I can tell you that there is no tax payable on a personal injury award in Ontario. This is true for slip and falls, car accidents, no fault benefits and all other personal injury awards.
This applies to all parts of the personal injury award including:
- General damage for pain and suffering
- Past loss of income
- Future lost wages
- Lost profits
- Medical and rehab expenses
- Housekeeping and home maintenance
- Loss of economic opportunity and loss of marketability
- Compensation for loss of care guidance and companionship
- Pre/Post judgement interest
- Costs / Expenses
There are, however, settlements that can be taxable such as compensation in a claim for long term or short term disability.
Something to keep in mind:
Although the money from a personal injury award is not taxable, if you invest the money, any interest earned will be taxable.