Money you receive to compensate for a physical injury is often treated differently from ordinary income, and much of a typical injury settlement may not be taxed the way a paycheck is. But settlements can include different types of compensation, and the treatment can depend on what each part is for.
For example, portions attributed to things like certain interest, or in some cases punitive damages, may be treated differently from compensation for the injury itself. Because those details matter, the way your particular settlement is structured drives the answer.
This is general information, not tax advice. For your situation, it is best to confirm with a tax professional, who can look at how your specific settlement is put together.