Is money received from a structured settlement tax ...

The lump sum you receive from a structured settlement buyer will have the same tax treatment as your structured settlement annuity. In other words, if your structured settlement payments were tax free then the lump sum you would receive from the sale would be tax free as well.

Most structured settlement annuities qualify for tax free treatment under section 130 of the Internal Revenue Code. The U.S Government has taken several steps to protect tort victims and other parties from unfair taxes that resulted from personal injury settlements.

The above answer is not quite correct.  Payments received from a structured settlement are income tax free. The basis for the tax treatment are two specific exemptions under the Internal Revenue Code: (A) damages for physical injury or physical sickness within the meaning of IRC 104(a)(2) or (B) claims for workers compensation. IRC 130 only comes into play if there is a so-called "qualified assignment" where a defendant's payment obligation is assigned to a 3rd party. Although this multi step process is the predominant methodology there are still instances where IRC 130 never even comes into play.

More on the basics of tax free structured settlements