Yes, the interest on a CD is taxable, but when you report it depends on whether it is a short-term CD, or a long-term CD.
For CD terms of one year or less, you will have to pay taxes on interest when it's received. That means if you start your 12 month CD in 2023, the interest is reported when it matures in 2024.
For CD terms longer than one year, you will have to pay taxes on interest earned each tax year during the CD term.
In either case, your bank, or broker will let you know how much to report by issuing a 1099-INT for the CD interest.
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