Are payouts from personal injury taxable?

yes,

but you can make deductions on your tax form for court fees. make sure to itemise the deductions and show clearly the amount you take away for the legal fees.
This is because the money received is seen as a gain and the fees such as court and other
legal fees are taken as a loss.

Compensatory damages are not taxed because it is the money you would have made if it not for
the accident.

 Punitive damages are taxable because they are seen a gain in income.

so depending on what category your personal injury claim sits under, is the main factor in
whether you will pay tax or not on this
amount.
so remember

Compensatory damages are not taxable
Punitive damages  are taxable