Retirement is a time of life enjoyed by millions -- with little or no work to do for income and much more time available to spend on our interests, such as family, hobbies, and traveling. It's not all rainbows and roses, though -- it's also a time when we have to survive on whatever income streams we've managed to build while working and on Social Security. And every year, Uncle Sam has his palm outstretched, collecting taxes.

Thus, as you plan for, enter, and live in retirement, it's smart to have a handle on how much your Social Security income may be taxed. The good news is that fully 38 states -- plus the District of Columbia -- do not tax Social Security income. But 12 states do. Even then, though, the news isn't all bad.

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Source Fool.com