UNITED STATES

SECURITIES AND EXCHANGE            COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF            REGISTERED**

**MANAGEMENT INVESTMENT            COMPANY**

**_______________________________**

Investment Company Act file number            811-3657

DWS State Tax-Free Income Series

(Exact name of registrant as specified in            charter)

 

222            South Riverside Plaza

Chicago, IL 60606

(Address of principal executive offices)                        (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154

(Name and address of agent for            service)

Registrant's telephone number, including area            code:(212) 454-7190

Date of fiscal year end:08/31

Date of reporting            period:11/30/07

 

ITEM 1.            SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of November 30, 2007 (Unaudited)** |
|----------------------|-----------------------------------------|

             

 

**DWS            New York Tax-Free Income Fund**

 

 

|                                                                                                                                                                                                     | **Principal****Amount ($)**         |      | **Value                            ($)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------|------------------------------------------|
|                                                                                                                                                                                                          |
|                                                                                                                                                                                                     | **Municipal Bonds and Notes 90.3%** |      |
| **New York 82.9%**                                                                                                                                                                                       |                                |
| Albany County, NY, Airport Revenue:                                                                                                                                                                      |                                |
|                                                                                                                                                                                                     | AMT, 5.375%, 12/15/2017 (a)         |      | 1,000,000                                |   | 1,020,950 |
|                                                                                                                                                                                                     | AMT, 5.5%, 12/15/2019 (a)           |      | 1,000,000                                |   | 1,021,040 |
| Albany, NY, Other General Obligation, 7.0%, 1/15/2008                            (a)                                                                                                                     |                                | 10,000    |                                     | 10,030 |
| Brookhaven, NY, Hospital & Healthcare Revenue,                            Industrial Development Authority, Memorial Hospital Medical Center,                            Series A, 8.25%, 11/15/2030 |                                | 2,000,000 |                                     | 2,276,540 |
| Buffalo, NY, Core City General Obligation, Series A,                            5.375%, 2/1/2016 (a)                                                                                                     |                                | 1,020,000 |                                     | 1,081,883 |
| Buffalo, NY, Other General Obligation, School                            Improvement, Series D, 5.5%, 12/15/2015 (a)                                                                                     |                                | 1,000,000 |                                     | 1,081,020 |
| Chautauqua County, NY, County General                            Obligation:                                                                                                                             |                                |
|                                                                                                                                                                                                          |                                     |           |                                          |  |  |  |  |

 

 

 

|                                                                                                                                                                               | ETM, 7.3%, 4/1/2008 (a)                  |      | 575,000    |      | 582,521    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|-----------|------------|-----------|------------|
|                                                                                                                                                                               | ETM, 7.3%, 4/1/2009 (a)                  |      | 575,000    |      | 605,441    |
| Erie County, NY, County General Obligation, Public                            Improvement, 6.125%, 1/15/2012 (a)                                                                   |                                     | 590,000   |       | 656,723   |
| Erie County, NY, Public Improvements, Series A, 5.0%,                            12/1/2017 (a)                                                                                     |                                     | 2,615,000 |       | 2,862,065 |
| Haverstraw-Stony Point, NY, Centeral School District,                            5.0%, 10/15/2021 (a)                                                                              |                                     | 4,500,000 |       | 4,896,495 |
| Liberty, NY, Development Corp. Revenue, Goldman Sachs                            Headquarters:                                                                                     |                                     |
|                                                                                                                                                                               | 5.25%, 10/1/2035                         |      | 10,000,000 |      | 10,630,600 |
|                                                                                                                                                                               | 5.5%, 10/1/2037                          |      | 2,500,000  |      | 2,778,000  |
| Long Island, NY, Electric System Revenue, Power                            Authority:                                                                                              |                                     |
|                                                                                                                                                                               | Zero Coupon, 6/1/2012 (a)                |      | 10,000,000 |      | 8,549,800  |
|                                                                                                                                                                               | Zero Coupon, 6/1/2014 (a)                |      | 2,115,000  |      | 1,665,309  |
|                                                                                                                                                                               | Series C, 5.5%, 9/1/2021                 |      | 1,250,000  |      | 1,393,987  |
| Metropolitan Transportation Authority, NY, Revenue,                            Series A, 5.0%, 11/15/2022 (a)                                                                      |                                     | 1,575,000 |       | 1,694,590 |
| Monroe County, NY, General Obligation, Public                            Improvement:                                                                                              |                                     |
|                                                                                                                                                                               | 6.0%, 3/1/2013 (a)                       |      | 1,050,000  |      | 1,181,428  |
|                                                                                                                                                                               | 6.0%, 3/1/2014 (a)                       |      | 1,040,000  |      | 1,187,202  |
|                                                                                                                                                                               | 6.0%, 3/1/2015 (a)                       |      | 1,250,000  |      | 1,450,737  |
|                                                                                                                                                                               | 6.0%, 3/1/2017 (a)                       |      | 1,410,000  |      | 1,626,548  |
|                                                                                                                                                                               | 6.0%, 3/1/2018 (a)                       |      | 1,130,000  |      | 1,337,818  |
| Montgomery, NY, School District General Obligation,                            Valley Central School District, 7.15%, 6/15/2008 (a)                                                |                                     | 625,000   |       | 637,575   |
| Nassau County, NY, Sewer & Storm Water Finance                            Authority System Revenue, Series B, 5.0%, 10/1/2023 (a)                                              |                                     | 500,000   |       | 523,980   |
| New York, County General Obligation Lease, Dormitory                            Authority, Westchester County Court Facilities, 5.25%,                            8/1/2014         |                                     | 2,555,000 |       | 2,638,012 |
| New York, Higher Education Revenue, Dormitory                            Authority:                                                                                                |                                     |
|                                                                                                                                                                               | Series C, Prerefunded, 7.375%, 5/15/2010 |      | 215,000    |      | 227,670    |
|                                                                                                                                                                               | Series C, 7.375%, 5/15/2010              |      | 430,000    |      | 454,231    |
|                                                                                                                                                                               | Series B, Prerefunded, 7.5%, 5/15/2011   |      | 325,000    |      | 350,565    |
|                                                                                                                                                                               | Series B, 7.5%, 5/15/2011                |      | 385,000    |      | 422,853    |
| New York, Higher Education Revenue, Dormitory                            Authority, Colgate University:                                                                            |                                     |
|                                                                                                                                                                               | 6.0%, 7/1/2016 (a)                       |      | 900,000    |      | 1,018,368  |
|                                                                                                                                                                               | 6.0%, 7/1/2021 (a)                       |      | 850,000    |      | 1,001,810  |
| New York, Higher Education Revenue, Dormitory                            Authority, Fordham University, 7.2%, 7/1/2015 (a)                                                         |                                     | 45,000    |       | 45,139    |
| New York, Higher Education Revenue, Dormitory                            Authority, Green Chimneys School, Series A, 5.5%, 7/1/2018                            (a)                 |                                     | 1,375,000 |       | 1,428,845 |
| New York, Higher Education Revenue, Dormitory                            Authority, New York University:                                                                           |                                     |
|                                                                                                                                                                               | Series 2, 5.5%, 7/1/2016 (a)             |      | 1,000,000  |      | 1,072,750  |
|                                                                                                                                                                               | Series A, 5.75%, 7/1/2027 (a)            |      | 3,000,000  |      | 3,543,180  |
| New York, Higher Education Revenue, Dormitory                            Authority, Pace University:                                                                               |                                     |
|                                                                                                                                                                               | 6.5%, 7/1/2009 (a)                       |      | 5,000      |      | 5,246      |
|                                                                                                                                                                               | 6.5%, 7/1/2011 (a)                       |      | 760,000    |      | 841,996    |
|                                                                                                                                                                               | 6.5%, 7/1/2012 (a)                       |      | 500,000    |      | 566,085    |
| New York, Higher Education Revenue, Dormitory                            Authority, Yeshiva University, 5.375%, 7/1/2016 (a)                                                       |                                     | 1,000,000 |       | 1,068,210 |
| New York, Higher Education Revenue, Urban Development                            Corp., Syracuse University, Center for Science and                            Technology:         |                                     |
|                                                                                                                                                                               | 5.5%, 1/1/2015                           |      | 4,500,000  |      | 4,893,075  |
|                                                                                                                                                                               | 5.5%, 1/1/2017                           |      | 4,890,000  |      | 5,395,039  |
| New York, Hospital & Healthcare Revenue,                            Dormitory Authority, Mt. Sinai School of Medicine, Series B, 5.7%,                            7/1/2011 (a) |                                     | 1,545,000 |       | 1,600,110 |
| New York, Hospital & Healthcare Revenue,                            Dormitory Authority, Sloan Kettering Institute, Series C, 5.5%,                            7/1/2023 (a)    |                                     | 3,000,000 |       | 3,371,100 |
| New York, Housing Finance Agency, State University                            Construction, Series A, ETM, 8.0%, 5/1/2011                                                          |                                     | 160,000   |       | 173,901   |
| New York, Metropolitan Transportation Authority                            Revenue, Series F, 5.25%, 11/15/2027 (a)                                                                |                                     | 1,200,000 |       | 1,309,356 |
| New York, Sales & Special Tax Revenue, Local                            Government Assistance Corp.:                                                                           |                                     |
|                                                                                                                                                                                    |                                          |           |            |           |            |  |

 

 

 

|                                                                                                                                                                                                   | Series E, 5.25%, 4/1/2016 (a)    |       | 1,185,000 |       | 1,304,495 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------|-----------|------------|-----------|
|                                                                                                                                                                                                   | Series C, 5.5%, 4/1/2017         |       | 6,000,000 |       | 6,691,620 |
| New York, Sales & Special Tax Revenue,                            Metropolitan Transportation Authority, Series A, Prerefunded, 5.25%,                            4/1/2016 (a)                     |                             | 2,000,000  |      | 2,224,560  |
| New York, Sales Tax Asset Receivable                            Corp.:                                                                                                                                 |                             |
|                                                                                                                                                                                                   | Series A, 5.0%, 10/15/2026 (a)   |       | 5,000,000 |       | 5,244,100 |
|                                                                                                                                                                                                   | Series A, 5.0%, 10/15/2029 (a)   |       | 5,000,000 |       | 5,219,800 |
| New York, Seneca Nation Indians, Capital Improvements                            Authority Revenue, Special Obligation, Series A, 144A, 5.25%,                            12/1/2016                    |                             | 2,500,000  |      | 2,533,100  |
| New York, State Agency General Obligation Lease,                            Dormitory Authority, City University System:                                                                               |                             |
|                                                                                                                                                                                                   | Series A, 5.625%, 7/1/2016 (a)   |       | 1,100,000 |       | 1,218,745 |
|                                                                                                                                                                                                   | Series A, 5.75%, 7/1/2009 (a)    |       | 1,000,000 |       | 1,020,140 |
|                                                                                                                                                                                                   | Series A, 5.75%, 7/1/2013 (a)    |       | 4,100,000 |       | 4,424,351 |
|                                                                                                                                                                                                   | 5.75%, 7/1/2018 (a)              |       | 2,250,000 |       | 2,556,000 |
| New York, State Agency General Obligation Lease,                            Dormitory Authority, State University Educational Facilities,                            Prerefunded, 5.25%, 5/15/2018 (a) |                             | 3,000,000  |      | 3,174,540  |
| New York, State Agency Revenue Lease, Urban                            Development Corp., Correctional Facilities:                                                                                     |                             |
|                                                                                                                                                                                                   | Series B, 5.25%, 1/1/2013 (a)    |       | 1,700,000 |       | 1,753,006 |
|                                                                                                                                                                                                   | Series A, 5.5%, 1/1/2014 (a)     |       | 2,000,000 |       | 2,169,340 |
| New York, State Dormitory Authority                            Revenue:                                                                                                                                |                             |
|                                                                                                                                                                                                   | Series A-1, 5.0%, 8/15/2025 (a)  |       | 2,175,000 |       | 2,253,148 |
|                                                                                                                                                                                                   | Series A, 5.25%, 2/15/2014 (a)   |       | 4,280,000 |       | 4,667,040 |
| New York, State Dormitory Authority Revenue, Columbia                            University, Series B, 5.0%, 7/1/2015                                                                                  |                             | 5,790,000  |      | 6,394,534  |
| New York, State Dormitory Authority Revenue, Mental                            Health Services Facilities Improvement, Series D, 5.0%, 8/15/2018                            (a)                        |                             | 3,120,000  |      | 3,317,340  |
| New York, State Dormitory Authority Revenue,                            Montefiore Hospital, 5.0%, 8/1/2023 (a)                                                                                        |                             | 3,000,000  |      | 3,132,900  |
| New York, State Dormitory Authority Revenue, New York                            University, Series A, 5.0%, 7/1/2022 (a)                                                                              |                             | 2,000,000  |      | 2,142,240  |
| New York, State Dormitory Authority Revenue, NYU                            Hospital Center, Series B, 5.25%, 7/1/2024 (b)                                                                             |                             | 1,000,000  |      | 968,750    |
| New York, State Dormitory Authority Revenue, State                            Personal Income Tax:                                                                                                     |                             |
|                                                                                                                                                                                                   | Series A, 5.0%, 3/15/2021        |       | 5,000,000 |       | 5,390,600 |
|                                                                                                                                                                                                   | Series A, 5.375%, 3/15/2020      |       | 3,000,000 |       | 3,303,030 |
| New York, State General Obligation Lease, Dormitory                            Authority, City University System:                                                                                      |                             |
|                                                                                                                                                                                                   | Series A, 5.75%, 7/1/2018 (a)    |       | 2,000,000 |       | 2,252,620 |
|                                                                                                                                                                                                   | Series D, ETM, 7.0%, 7/1/2009    |       | 645,000   |       | 668,284   |
| New York, State General Obligation Lease, Dormitory                            Authority, Judicial Facilities, ETM, 7.375%, 7/1/2016 (a)                                                               |                             | 85,000     |      | 99,583     |
| New York, State General Obligation Lease, Dormitory                            Authority, State University Educational Facilities:                                                                     |                             |
|                                                                                                                                                                                                   | Series B, 5.375%, 7/1/2019       |       | 1,980,000 |       | 2,064,704 |
|                                                                                                                                                                                                   | 5.875%, 5/15/2017 (a)            |       | 2,325,000 |       | 2,695,442 |
| New York, State General Obligation Lease, Urban                            Development Corp., State Facilities, 5.6%, 4/1/2015                                                                         |                             | 2,260,000  |      | 2,500,057  |
| New York, State General Obligation, Tobacco                            Settlement Financing Corp., Series A-1, 5.5%, 6/1/2019                                                                          |                             | 6,000,000  |      | 6,429,900  |
| New York, State Housing Finance Agency Revenue, 100                            Maiden Lane, Series A, 3.6% *, 5/15/2037                                                                                |                             | 600,000    |      | 600,000    |
| New York, State Housing Finance Agency, State                            Personal Income Tax Revenue, Economic Development & Housing, Series                            A, 5.0%, 9/15/2030 (a)     |                             | 4,000,000  |      | 4,144,280  |
| New York, State Thruway Authority Highway &                            Bridge Trust Fund, Series B, 5.0%, 4/1/2021 (a)                                                                             |                             | 10,000,000 |      | 10,624,300 |
| New York, State Urban Development Corp. Revenue,                            Personal Income Tax:                                                                                                       |                             |
|                                                                                                                                                                                                   | Series A-1, 5.0%, 12/15/2021 (a) |       | 5,000,000 |       | 5,302,350 |
|                                                                                                                                                                                                   | Series B, 5.0%, 3/15/2023        |       | 45,000    |       | 48,047    |
| New York, Tobacco Settlement Financing Corp., Series                            B-1C, 5.5%, 6/1/2019                                                                                                   |                             | 5,000,000  |      | 5,358,250  |
| New York, Transportation/Tolls Revenue, General                            Improvements, Triborough Bridge and Tunnel Authority:                                                                       |                             |
|                                                                                                                                                                                                        |                                  |            |           |            |           |  |

 

 

 

|                                                                                                                                                                                                 | Series B, 5.0%, 11/15/2021                                             |       | 6,000,000 |       | 6,283,800 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|------------|-----------|------------|-----------|
|                                                                                                                                                                                                 | Series A, 5.25%, 1/1/2018                                              |       | 2,000,000 |       | 2,116,880 |
| New York, Transportation/Tolls Revenue, Metropolitan                            Transportation Authority:                                                                                            |                                                                   |
|                                                                                                                                                                                                 | Series Q, ETM, 5.125%, 7/1/2012 (a)                                    |       | 5,000,000 |       | 5,056,600 |
|                                                                                                                                                                                                 | Series C, Prerefunded, 5.125%, 7/1/2013                            (a) |       | 4,000,000 |       | 4,311,476 |
| New York, Transportation/Tolls Revenue, Triborough                            Bridge and Tunnel Authority, Series Y, 6.125%, 1/1/2021                                                                |                                                                   | 7,205,000  |      | 8,763,514  |
| New York, Urban Development Corp. Revenue, Community                            Enhancement Facilities, Prerefunded, 5.125%, 4/1/2016 (a)                                                            |                                                                   | 2,525,000  |      | 2,612,340  |
| New York, Water & Sewer Revenue, Environmental                            Facilities Corp., Riverbank State Park, 6.25%, 4/1/2012 (a)                                                            |                                                                   | 3,695,000  |      | 3,983,986  |
| New York, Water & Sewer Revenue, Environmental                            Facilities Corp., State Clean Water & Drinking Revolving                            Funds:                         |                                                                   |
|                                                                                                                                                                                                 | Series B, 5.25%, 5/15/2015                                             |       | 3,120,000 |       | 3,312,005 |
|                                                                                                                                                                                                 | Series C, 5.25%, 6/15/2015                                             |       | 5,330,000 |       | 5,665,470 |
|                                                                                                                                                                                                 | Series B, 5.25%, 6/15/2016                                             |       | 6,000,000 |       | 6,442,500 |
| New York, Water & Sewer Revenue, Environmental                            Facilities Corp., State Water Pollution Control, Series E, 6.5%,                            6/15/2014                  |                                                                   | 90,000     |      | 90,225     |
| New York & New Jersey, Port Authority, One                            Hundred Forty-Sixth, AMT, 5.0%, 12/1/2021 (a)                                                                              |                                                                   | 5,930,000  |      | 6,219,087  |
| New York City, NY, Housing Development Corp. Revenue,                            NYC Housing Authority Project, Series A, 5.0%, 7/1/2025 (a)                                                         |                                                                   | 2,100,000  |      | 2,188,011  |
| New York City, NY, Industrial Development Agency                            Revenue, Liberty-7, World Trade Center, Series A, 6.25%,                            3/1/2015                             |                                                                   | 2,000,000  |      | 2,078,620  |
| New York City, NY, Industrial Development Agency,                            Special Facility Revenue, American Airlines, JFK International Airport,                            AMT, 7.75%, 8/1/2031 |                                                                   | 3,500,000  |      | 3,861,200  |
| New York City, NY, Transitional Finance Authority                            Revenue, Future Tax Secured, Series C, 5.0%, 5/1/2017                                                                   |                                                                   | 4,000,000  |      | 4,124,280  |
| New York, NY, Airport Revenue, Industrial Development                            Agency, Japan Air Lines, AMT, 6.0%, 11/1/2015 (a)                                                                   |                                                                   | 595,000    |      | 601,236    |
| New York, NY, Core City General Obligation, Series D,                            5.25%, 2/1/2021 (a)                                                                                                 |                                                                   | 4,000,000  |      | 4,278,400  |
| New York, NY, Core City General Obligation,                            Transitional Finance Authority, Series B, 5.5%, 2/1/2017                                                                      |                                                                   | 480,000    |      | 514,037    |
| New York, NY, Core City General Obligation,                            Transitional Finance Authority, Future Tax Secured, Series C, 5.375%,                            2/1/2017                     |                                                                   | 1,500,000  |      | 1,600,305  |
| New York, NY, General Obligation:                                                                                                                                                                    |                                                                   |
|                                                                                                                                                                                                 | Series I, 5.0%, 8/1/2021                                               |       | 2,500,000 |       | 2,598,175 |
|                                                                                                                                                                                                 | Series D, 5.0%, 11/1/2023                                              |       | 5,000,000 |       | 5,178,600 |
|                                                                                                                                                                                                 | Series H, Prerefunded, 5.125%, 8/1/2018                            (a) |       | 335,000   |       | 342,363   |
|                                                                                                                                                                                                 | Series H, 5.125%, 8/1/2018 (a)                                         |       | 3,070,000 |       | 3,134,838 |
|                                                                                                                                                                                                 | Series C-1, 5.25%, 8/15/2018                                           |       | 3,525,000 |       | 3,794,698 |
| New York, NY, Hospital & Healthcare Revenue,                            Industrial Development Agency, British Airways PLC Project, AMT,                            7.625%, 12/1/2032            |                                                                   | 2,000,000  |      | 2,123,780  |
| New York, NY, Project Revenue, Industrial Development                            Agency, YMCA Greater Project:                                                                                       |                                                                   |
|                                                                                                                                                                                                 | 5.8%, 8/1/2016                                                         |       | 965,000   |       | 995,735   |
|                                                                                                                                                                                                 | 5.85%, 8/1/2008                                                        |       | 600,000   |       | 609,282   |
| New York, NY, Transportation/Tolls Revenue, Thruway                            Authority, Series A, 5.0%, 3/15/2021 (a)                                                                              |                                                                   | 2,000,000  |      | 2,106,600  |
| New York, NY, Water & Sewer Revenue, Municipal                            Water Finance Authority, Series D, Zero Coupon, 6/15/2017                                                              |                                                                   | 5,000,000  |      | 3,429,700  |
| Niagara County, NY, General Obligation, 7.1%,                            2/15/2011 (a)                                                                                                               |                                                                   | 500,000    |      | 557,620    |
| Niagara County, NY, Industrial Development Revenue,                            Industrial Development Agency, Series D, 5.55%, 11/15/2024                                                            |                                                                   | 3,760,000  |      | 3,799,593  |
| Niagara Falls, NY, Other General Obligation, Water                            Treatment Plant, AMT, 7.25%, 11/1/2011 (a)                                                                             |                                                                   | 215,000    |      | 245,339    |
| Niagara Falls, NY, Transportation/Tolls Revenue,                            Bridge Commission, 5.25%, 10/1/2015 (a) (c)                                                                              |                                                                   | 10,720,000 |      | 11,515,424 |
| North Babylon, NY, School District General                            Obligation, Unified Free School District, 5.25%, 1/15/2016                            (a)                                      |                                                                   | 1,605,000  |      | 1,694,703  |
| Oneida-Herkimer, NY, Resource Recovery Revenue, Solid                            Waste Management Authority:                                                                                         |                                                                   |
|                                                                                                                                                                                                 | 5.5%, 4/1/2013 (a)                                                     |       | 500,000   |       | 544,960   |
|                                                                                                                                                                                                      |                                                                        |            |           |            |           |  |

 

 

 

|                                                                                                                                                                            | 5.5%, 4/1/2014 (a)                                                                                                                                                                                                                          |            | 1,000,000 |       | 1,099,900 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------|------------|-----------|
| Orange County, NY, Senior Care Revenue, Industrial                            Development Agency, The Glen Arden Project:                                                       |                                                                                                                                                                                                                                        |
|                                                                                                                                                                            | 5.625%, 1/1/2018                                                                                                                                                                                                                            |            | 2,000,000 |       | 2,002,260 |
|                                                                                                                                                                            | 5.7%, 1/1/2028                                                                                                                                                                                                                              |            | 3,250,000 |       | 3,127,702 |
| Shenendehowa, NY, School District General Obligation,                            Central School District, Clifton Park:                                                         |                                                                                                                                                                                                                                        |
|                                                                                                                                                                            | 6.85%, 6/15/2008 (a)                                                                                                                                                                                                                        |            | 350,000   |       | 356,668   |
|                                                                                                                                                                            | 6.85%, 6/15/2009 (a)                                                                                                                                                                                                                        |            | 350,000   |       | 369,369   |
| Troy, NY, Sales & Special Tax Revenue, Municipal                            Assistance Corp., Series B, Zero Coupon, 1/15/2008 (a)                                          |                                                                                                                                                                                                                                        | 750,000         |      | 746,901    |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **320,549,201**                                                                                                                                                                                                                             |
| **Puerto Rico 7.4%**                                                                                                                                                            |                                                                                                                                                                                                                                        |
| Commonwealth of Puerto Rico, Government Development                            Bank, Series B, 5.0%, 12/1/2015                                                                  |                                                                                                                                                                                                                                        | 1,470,000       |      | 1,546,881  |
| Commonwealth of Puerto Rico, Highway &                            Transportation Authority Revenue:                                                                         |                                                                                                                                                                                                                                        |
|                                                                                                                                                                            | Series K, 5.0%, 7/1/2017                                                                                                                                                                                                                    |            | 2,000,000 |       | 2,079,220 |
|                                                                                                                                                                            | Series AA, 5.5%, 7/1/2016 (a)                                                                                                                                                                                                               |            | 2,410,000 |       | 2,667,653 |
| Commonwealth of Puerto Rico, Public Improvement,                            Series A, 5.5%, 7/1/2017 (a)                                                                        |                                                                                                                                                                                                                                        | 6,000,000       |      | 6,657,600  |
| Puerto Rico, Electric Power Authority Revenue, 6.0%,                            7/1/2012 (a)                                                                                    |                                                                                                                                                                                                                                        | 4,020,000       |      | 4,457,537  |
| Puerto Rico, Municipal Finance Agency, Series A,                            5.25%, 8/1/2024                                                                                     |                                                                                                                                                                                                                                        | 2,500,000       |      | 2,560,825  |
| Puerto Rico, Sales & Special Tax Revenue, Highway                            & Transportation Authority, Series Z, 6.0%, 7/1/2018 (a)                                   |                                                                                                                                                                                                                                        | 2,750,000       |      | 3,235,073  |
| Puerto Rico, State General Obligation, Public                            Improvements, 5.5%, 7/1/2013 (a)                                                                       |                                                                                                                                                                                                                                        | 5,000,000       |      | 5,430,550  |
|                                                                                                                                                                                 |
|                                                                                                                                                                            | **28,635,339**                                                                                                                                                                                                                              |
|                                                                                                                                                                                 |
| **Total Municipal Bonds and Notes**(Cost $330,558,217)                                                                                                                          |                                                                                                                                                                                                                                        | **349,184,540** |
|                                                                                                                                                                            | **Municipal Inverse Floating Rate Notes                            24.2%**                                                                                                                                                                  |            |
| **New York 19.9%**                                                                                                                                                              |                                                                                                                                                                                                                                        |
| Long Island, NY, Power Authority, Electric System                            Revenue, Series D, 5.0%, 9/1/2023 (a) (d)                                                          |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,629,250 |
|                                                                                                                                                                            | *Trust:                            Long Island, NY, Power Authority, Electric System Revenue, Series,                            1914, 144A, 8.57%, 9/1/2023, Leverage Factor at purchase date: 4 to                            1*          |            |      |       |      |
| New York, Metropolitan Transportation Authority                            Revenue, Series A, 5.5%, 11/15/2017 (a) (d)                                                          |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,893,500 |
|                                                                                                                                                                            | *Trust: New York, Municipal Securities Trust                            Certificates, Series 7001-B, 144A, 7.14%,*

*11/15/2017, Leverage Factor at purchase date: 2 to                            1*                                       |            |      |       |      |
| New York, State Dormitory Authority Revenues, Mental                            Health Services, Series B, 6.0%, 8/15/2016 (a) (d)                                              |                                                                                                                                                                                                                                        | 2,220,000       |      | 2,524,884  |
|                                                                                                                                                                            | *Trust:                            New York, State Dormitory Authority Revenues Residual Certificates,                            Series 310, 144A, 8.105%, 8/15/2016, Leverage Factor at purchase date:                            2 to 1* |            |      |       |      |
| New York, State Thruway Authority, Highway and Bridge                            Trust Fund, Series B, 5.0%, 4/1/2019 (a) (d)                                                   |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,701,150 |
|                                                                                                                                                                            | *Trust: New York, State Thruway Authority, Highway                            and Bridge Trust Fund, Series*

*1071-1, 144A, 6.12%, 4/1/2019, Leverage Factor at                            purchase date: 2 to1*                           |            |      |       |      |
| New York State Urban Development Corp. Revenue, State                            Personal Income Tax, Series B, 5.0%, 3/15/2023 (d)                                             |                                                                                                                                                                                                                                        | 9,900,000       |      | 10,570,289 |
|                                                                                                                                                                            | *Trust: New York, UBS Municipal (CRVS), Various                            States, Series 07-1037, 144A, 9.68%*

*3/15/2023, Leverage Factor at purchase date: 5 to                            1*                                           |            |      |       |      |
| New York & New Jersey Port Authority, One Hundred                            Forty-Seventh, AMT, 5.0%, 10/15/2027 (a) (d)                                                   |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,224,850 |
|                                                                                                                                                                            | *Trust: New York & New Jersey Port Authority,                            Series 2232, 144A, AMT, 15.71%,*

*10/15/2027, Leverage                            Factor at purchase date: 10 to 1*                                           |            |      |       |      |
| New York City, NY, Transitional Finance Authority                            Revenue, Series B, 5.0%, 11/1/2023 (d)                                                             |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,709,200 |
|                                                                                                                                                                            | *Trust: New York City, NY, DFA Municipal Trust,                            Various States, Series 3000, 144A,*

*9.76%, 11/1/2023, Leverage Factor at purchase                            date: 5 to 1*                                     |            |      |       |      |
| New York City, NY, Municipal Water Finance Authority,                            Water & Sewer System Revenue, Series D, 5.5%, 6/15/2016 (a)                            (d) |                                                                                                                                                                                                                                        | 10,000,000      |      | 10,776,750 |
|                                                                                                                                                                            | *Trust: New York City, NY, Municipal Water Finance                            Authority, Water & Sewer*

*Revenue, RITES-PA 838, 144A, 6.96%, 6/15/2016,                            Leverage Factor at purchase date:2*

*to 1*         |            |      |       |      |
|                                                                                                                                                                                 |                                                                                                                                                                                                                                             |                 |           |            |           |  |  |  |  |

 

 

 

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                            | **77,029,873** |
| **Puerto Rico 4.3%**                                                                                            |   |
| Commonwealth of Puerto Rico, Public Improvement,                            Series A, 5.5%, 7/1/2020 (a) (d)    |   | 6,750,000 |   | 7,618,455 |
|                                                                                                            | *Trust:                            Commonwealth of Puerto Rico, General Obligation, RITES-PA 944R-B,144A,                            7.11%, 7/1/2020, Leverage Factor at purchase date: 2 to                            1* |   |   |   |   |
| Puerto Rico, Electric Power Authority Revenue, Series                            UU, 4.025%**, 7/1/2029 (a) (d) |   | 10,000,000 |   | 9,153,900 |
|                                                                                                            | *Trust: Puerto Rico, Electric Power Authority                            Revenue, Series 1830, 144A, 4.545%,*

*7/1/2029, Leverage Factor at purchase date: 5 to                            1* |   |   |   |   |
|                                                                                                                 |
|                                                                                                            | **16,772,355** |
|                                                                                                                 |
| **Total Municipal Inverse Floating Rate                            Notes**(Cost $92,211,940)                    |   | **93,802,228** |
|                                                                                                            | **Government & Agency Obligations                            0.0%** |   |
| US Treasury Bill, 3.7%***, 1/17/2008 (Cost                            $85,593)                                  |   | 86,000 |   | **85,679** |
|                                                                                                            | **%                            of****Net Assets** |   | **Value                            ($)** |
|                                                                                                                 |
| **Total Investment Portfolio**(Cost $422,855,750)                                                               | 114.5 |   | **443,072,447** |
| **Other Assets and Liabilities, Net**                                                                           | (14.5) |   | **(56,216,298)** |
|                                                                                                                 |
|                                                                                                                 |  |  |  |  |  |  |  |  |  |

 

|                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Net Assets**                                                                                                                                                                                                                                                                                                                                                       | 100.0 |   | **386,856,149** |
|                                                                                                                                                                                                                                                                                                                                                                 | *For information on the Fund's policies regarding                            the valuation of investments and other significant accounting policies,                            please refer to the Fund's most recent semi-annual or annual financial                            statements.* |
| ***                                                                                                                                                                                                                                                                                                                                                                  | *Variable rate demand notes are securities whose                            interest rates are reset periodically at market levels. These                            securities are often payable on demand and are shown at their current                            rates as of November 30, 2007.* |
| ****                                                                                                                                                                                                                                                                                                                                                                 | *Floating rate notes are securities whose yields                            vary with a designated market index or market rate, such as the                            coupon-equivalent of the US Treasury bill rate. These securities are                            shown at their current rate as of November 30, 2007.* |
| *****                                                                                                                                                                                                                                                                                                                                                                | *Annualized yield at time of purchase; not a coupon                            rate.* |
| *(a)*                                                                                                                                                                                                                                                                                                                                                                | *Bond is insured by one of these                            companies:* |
| * *                                                                                                                                                                                                                                                                                                                                                             |  |  |  |  |  |
| ***Insurance Coverage***                                                                                                                                                                                                                                                                                                                                             | *** ******As a % of Total******Investment                            Portfolio*** |  |
|                                                                                                                                                                                                                                                                                                                                                                 | *Ambac Financial Group, Inc.* | *15.6* |
|                                                                                                                                                                                                                                                                                                                                                                 | *Financial Guaranty Insurance Company* | *14.4* |
|                                                                                                                                                                                                                                                                                                                                                                 | *Financial Security Assurance, Inc.* | *13.1* |
|                                                                                                                                                                                                                                                                                                                                                                 | *MBIA Corporation* | *17.5* |
| *(b)*                                                                                                                                                                                                                                                                                                                                                                | *When-issued security.* |
| *(c)*                                                                                                                                                                                                                                                                                                                                                                | *At November 30, 2007, this security has been                            pledged, in whole or in part, to cover collateral for open interest                            rate swaps.* |
| *(d)*                                                                                                                                                                                                                                                                                                                                                                | *Security forms part of the below tender option                            bond trust. Principal amount and value shown take into account the                            leverage factor.* |
| *144A: Security exempt from registration under Rule                            144A of the Securities Act of 1933. These securities may be resold in                            transactions exempt from registration, normally to qualified                            institutional buyers.*                                                                       |
| *AMT: Subject to alternative minimum                            tax.*                                                                                                                                                                                                                                                                                                |
| *CRVS: Custodial Residual and Variable                            Securities*                                                                                                                                                                                                                                                                                        |
| *ETM: Bonds bearing the description ETM (escrow to                            maturity) are collateralized usually by US Treasury securities which                            are held in escrow and used to pay principal and interest on bonds so                            designated.*                                                                          |
| *Prerefunded: Bonds which are prerefunded are                            collateralized usually by US Treasury securities which are held in                            escrow and are used to pay principal and interest on tax-exempt issues                            and to retire the bonds in full at the earliest refunding                            date.* |
| *RITES: Residual Interest Tax Exempt                            Security*                                                                                                                                                                                                                                                                                            |
| *At November 30, 2007, open interest rate swaps                            were as follows:*                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |  |

 

 

 

| **Effective/****Expiration****Dates** |          | **Notional****Amount ($)** |   | **Cash                            Flows Paid****by the Fund** |   | **Cash                            Flows Received by the Fund** |              | **Unrealized****Depreciation ($)** |
|---------------------------------------|---------------|----------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------------|-------------------|------------------------------------|
|                                  |
| 5/19/2008

11/18/2023                 |          |  

5,400,0001         |   | Fixed — 5.261%                                          |   | Floating — LIBOR                                         |  

(255,661) |                               |
| 5/30/2008

5/30/2025                  |          |  

4,700,0002         |   | Fixed — 4.947%                                          |   | Floating — LIBOR                                         |  

(39,583)  |                               |
| 4/1/2008

9/29/2027                   |          |  

4,400,0002         |   | Fixed — 5.555%                                          |   | Floating — LIBOR                                         |  

(362,232) |                               |
| **Total net unrealized depreciation** | **(657,476)** |                       |

 

| *Counterparties:*                                                                 |
|-----------------------------------------------------------------------------------|
| *1*                                                                               | *Goldman Sachs & Co.* |
| *2*                                                                               | *JPMorgan Chase* |
| *LIBOR: Represents the London InterBank Offered                            Rate.* |

 

 

| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (a)                                     The Chief                            Executive and Financial Officers concluded that the Registrant’s                            Disclosure Controls and Procedures are effective based on the                            evaluation of the Disclosure Controls and Procedures as of a date                            within 90 days of the filing date of this report.                                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (b)                                     There have been                            no changes in the registrant’s internal control over financial                            reporting that occurred during the registrant’s last half-year                            (the registrant’s second fiscal half-year in the case of the                            annual report) that has materially affected, or is reasonably likely to                            materially affect, the registrant’s internal controls over                            financial reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | Certification pursuant to Rule 30a-2(a) under the                            Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and                            attached hereto as Exhibit 99.CERT.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and            the Investment Company Act of 1940, the registrant has duly caused this report to be            signed on its behalf by the undersigned, thereunto duly authorized.

 

| Registrant: | DWS New York Tax-Free Income Fund, a series of DWS State                            Tax-Free Income Series |
|-------------|------------------------------------------------------------------------------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | January 16, 2008 |
|-------|------------------|

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and            the Investment Company Act of 1940, this report has been signed below by the following            persons on behalf of the registrant and in the capacities and on the dates            indicated.

 

| Registrant: | DWS New York Tax-Free Income Fund, a series of DWS State                            Tax-Free Income Series |
|-------------|------------------------------------------------------------------------------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | January 16, 2008 |
|-------|------------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

| Date: | January 16, 2008 |
|-------|------------------|