Back to homeIs the Disability Compensation taxable?Updated by MINDEF 26d agoLump sum disability compensation is not taxable. It also does not have CPF deductibles.Was this answer helpful?NoYesYour opinion matters! Be the first to vote.Related questionsAre the Celebratory Gifts taxable?Are NSF allowances taxable?Why are the Long Service Award, IPPT award and commuted leave pay taxable?Are the NS LifeSG Credits subject to income tax?Need more help?Get in touch