Annual Report - Financial Statements
T. Rowe Price
Tax-Free 
Income Fund

February 28, 1997

Portfolio Highlights

SECTOR DIVERSIFICATION

                             Percent of   Percent of
                             Net Assets   Net Assets
                                8/31/96      2/28/97
_____________________________________________________

Hospital Revenue                     14%          14%

Nuclear Revenue                      11           12

Housing Finance Revenue               7           10

Dedicated Tax Revenue                10            9

Prerefunded Bonds                     6            8

General Obligation - State            8            8

General Obligation - Local            6            7

Electric Revenue                      8            5

Lease Revenue                         6            5

Water and Sewer Revenue               6            5

Escrowed to Maturity                  5            5

Educational Revenue                   4            4

Ground Transportation Revenue         3            3

All Others                            6            5

Other Assets Less Liabilities         -            -
_____________________________________________________

Total                               100%         100%

T. Rowe Price Tax-Free Income Fund

For a share outstanding throughout each period

Financial Highlights
                    Year                                 Ended
2/28/97          2/29/96 2/28/95 2/28/94  2/28/93

NET ASSET VALUE

Beginning of 
    period       $  9.66  $ 9.25  $ 9.66  $  9.84 $ 9.09

Investment 
  activities
  Net investment 
     income         0.52    0.52    0.53     0.54   0.56
  Net realized 
     and unrealized 
     gain (loss)   (0.07)   0.41   (0.37)       -   0.75

  Total from
  investment 
     activities     0.45    0.93    0.16     0.54   1.31

Distributions           
  Net investment 
     income        (0.52)  (0.52)  (0.53)   (0.54) (0.56)
  Net realized 
     gain              -       -   (0.04)   (0.18)     -
  
  Total distri-
     butions       (0.52)  (0.52)  (0.57)   (0.72) (0.56)

NET ASSET VALUE

End of period    $  9.59  $ 9.66  $ 9.25  $  9.66 $  9.84

Ratios/Supplemental Data

Total return       4.81%  10.31%   1.90%    5.50%  14.88%

Ratio of expenses 
  to average net 
  assets           0.57%   0.58%   0.59%    0.59%   0.61%

Ratio of net 
  investment
  income to 
  average
  net assets       5.41%   5.49%   5.80%    5.40%   5.98%

Portfolio 
  turnover 
  rate             40.7%   48.7%   49.3%    71.2%   76.7%

Net assets, end 
  of period
  (in millions)  $ 1,337  $1,376  $1,329  $ 1,453 $ 1,442

The accompanying notes are an integral part of these financial
statements.

T. Rowe Price Tax-Free Income Fund
February 28, 1997

Statement of Net Assets

                                  Par        Value
                                   In thousands

ALABAMA  2.2%

Alabama, GO

  Zero Coupon, 9/1/03          $ 10,000  $   7,124
     
  Zero Coupon, 3/1/04            10,000      6,853

  Zero Coupon, 9/1/04             5,500      3,635

Alabama Water Pollution Control Auth.
  6.75%, 8/15/17 
  (AMBAC Insured)                 2,750      3,049

Alexander City Special 
  Care Fac. Fin. Auth., 
  Russell Hosp. Corp.
     6.00%, 12/1/22               3,250      3,132

Baldwin County, Eastern 
  Shore Health Care Auth.
  Thomas Hosp., 6.75%, 4/1/21     1,900      1,960

Mobile, 
  Capital Improvement Warrants, GO
     Zero Coupon, 8/15/16 
     (MBIA Insured)               4,330      1,274
     
     Zero Coupon, 8/15/17 
     (MBIA Insured)               4,435      1,216

Mobile IDB, Mobile Energy 
  Services, 6.95%, 1/1/20         1,500      1,592

Total Alabama (Cost  $27,150)               29,835

ALASKA  1.1%

Alaska Housing Fin. Corp.
  5.85%, 12/1/14 
  (MBIA Insured)                  3,405      3,429
     
  5.875%, 12/1/24 
  (MBIA Insured)                 11,000     10,932

Total Alaska (Cost  $14,045)                14,361

ARIZONA  0.8%

Maricopa County, PCR, Public 
  Service Co. of New Mexico
     6.30%, 12/1/26               1,500      1,514

Salt River Agricultural 
  Improvement and Power 
  Dist. Electric System, 
  6.50%, 1/1/22                   8,000      8,547

Total Arizona (Cost  $9,194)                10,061

ARKANSAS  0.5%

Little Rock Health Fac. 
  Board, Baptist Medical Center
     6.85%, 11/1/08               2,495      2,821

North Little Rock, Electric, 
  6.50%, 7/1/15 
  (MBIA Insured)                  4,000      4,538

Total Arkansas (Cost  $6,476)                7,359

CALIFORNIA  8.3%

California, GO
     5.375%, 6/1/26 
     (FGIC Insured)            $  5,000  $   4,791
     
     RAN, 4.50%, 6/30/97         14,300     14,343

Foothill / Eastern 
  Transportation Corridor 
  Agency California Toll Road
     Zero Coupon, 1/1/15          5,000      1,662

     Zero Coupon, 1/1/17         20,000      5,797

     Zero Coupon, 1/1/19          1,000        254

     Zero Coupon, 1/1/26          5,000        810

Los Angeles City
  GO, 5.80%, 9/1/09 
  (FGIC Insured)                  2,400      2,499
  
  GO, 6.00%, 9/1/14 
  (MBIA Insured)                  5,000      5,213
  
  Wastewater, 7.15%, 
  6/1/20 (Prerefunded 
  6/1/00!)                       10,500     11,645

Los Angeles County
  Marina del Rey, COP
     6.25%, 7/1/03                4,000      4,198

     6.50%, 7/1/08                3,250      3,380

  Public Works Fin. Auth.
     5.50%, 10/1/18 
     (FSA Insured)                2,000      1,975

Los Angeles County Metropolitan Transportation Auth.
  Sales Tax
     7.40%, 7/1/15                5,530      5,985
     
     6.25%, 7/1/13 
     (MBIA Insured)               8,965      9,516

Los Angeles Harbor Dept.
  7.60%, 10/1/18 
  (Escrowed to Maturity)          3,200      4,014

Port of Oakland, 7.30%, 
  11/1/09 (BIGI Insured)
  (Prerefunded 5/1/97!)           1,650      1,694

Sacramento Fin. Auth., 
  5.375%, 11/1/14 (AMBAC 
  Insured)                        4,000      3,988

San Bernardino, Sisters of 
  Charity Health Care System
     7.00%, 7/1/21 
     (Prerefunded 7/1/01!)        3,000      3,361

San Francisco Building Auth.
  San Francisco Civic Center Complex
     5.25%, 12/1/21 
     (AMBAC Insured)              5,000      4,722

  San Francisco City and 
  County Airport
     6.30%, 5/1/11 
     (AMBAC Insured)              2,000      2,144
     
     5.25%, 5/1/14 
     (FGIC Insured)               2,035      1,988

San Mateo County Transit Dist.
     5.25%, 6/1/16 
     (MBIA Insured)            $  6,000  $   5,809
     
     5.25%, 6/1/17 
     (MBIA Insured)               2,000      1,934

Southern California Public Power Auth.
     6.75%, 7/1/11                4,050      4,565

     5.15%, 7/1/15 
     (AMBAC Insured)              5,000      4,727

Total California 
  (Cost  $104,037)                         111,014

COLORADO  1.5%

Boulder County, Longmont United Hosp.
     8.20%, 12/1/20 
     (Prerefunded 12/1/00!)       2,000      2,277

Denver City and County Airport
     5.50%, 11/15/25 
     (MBIA Insured)               9,800      9,417

Jefferson County School 
Dist., GO 
  6.00%, 12/15/12 
  (AMBAC Insured)                 8,000      8,355

Total Colorado (Cost  $19,100)              20,049

CONNECTICUT  1.1%

Connecticut, State 
Special Tax, 7.125%, 6/1/10       7,350      8,732

Connecticut HEFA, Yale-
New Haven Hosp.
     7.10%, 7/1/25 
     (MBIA Insured)
     (Prerefunded 7/1/00!)        5,825      6,427

Total Connecticut 
(Cost  $13,248)                             15,159

DELAWARE  0.3%

Delaware HFA, Beebe 
Medical Center, 6.75%, 6/1/14     3,500      3,617

Total Delaware (Cost  $3,423)                3,617

DISTRICT OF COLUMBIA  0.4%

Dist. of Columbia
  American Univ.
     VRDN (Currently 3.35%)       1,655      1,655
     5.625%, 10/1/26 
     (AMBAC Insured)              3,530      3,404

Total District of Columbia 
  (Cost  $5,050)                             5,059

FLORIDA  3.1%

Broward County Resource Recovery
  Broward Waste Energy, 
  L.P. North
     7.95%, 12/1/08            $ 10,640  $  11,676

  Broward Waste Energy, 
  L.P. South
     7.95%, 12/1/08                 870        954
Dade County
  Capital Appreciation
     Zero Coupon, 2/1/09 
     (MBIA Insured)              12,185      6,545
     
     Zero Coupon, 2/1/13 
     (MBIA Insured)               9,000      3,764

Florida Board of Ed.
  Public Ed. Capital Outlay, GO
     7.25%, 6/1/23                6,210      6,805
     
     7.25%, 6/1/23 
     (Prerefunded 6/1/00!)           35         39

Jacksonville Transportation 
Auth., GO
     7.375%, 7/1/20 
     (Prerefunded 7/1/00!)        8,750      9,748

Port St. Lucie
  Capital Appreciation
     Zero Coupon, 9/1/16 
     (FGIC Insured)               5,000      1,575
     
     Zero Coupon, 9/1/26 
     (FGIC Insured)               5,000        835

Total Florida (Cost  $38,600)               41,941

GEORGIA  7.5%

Burke County Dev. Auth., 
PCR, Georgia Power Co.
     VRDN (Currently 3.45%)       1,600      1,600

Chatham County Hosp. Auth., 
Memorial Medical Center
     5.25%, 1/1/16 
     (AMBAC Insured)             10,205      9,746

Coweta County Residential 
Care Fac. for the Elderly Auth.
  Wesley Woods of Newnan-
  Peachtree City
     8.20%, 10/1/16               1,350      1,365

     8.25%, 10/1/26               1,800      1,821

Fulton-Dekalb Hosp. Auth.
  Grady Memorial Hosp.
     6.80%, 1/1/07 (AMBAC 
     Insured)(Escrowed to 
     Maturity)                    5,530      6,346
     
     6.80%, 1/1/08 
     (AMBAC Insured)
     (Escrowed to Maturity)       5,905      6,790

Fulton-Dekalb Hosp. Auth.
  Grady Memorial Hosp.
     6.85%, 1/1/09 
     (AMBAC Insured)
     (Escrowed to Maturity)    $  6,310  $   7,285

     6.85%, 1/1/10 
     (AMBAC Insured)
     (Escrowed to Maturity)       6,745      7,782

Gwinnett County School Dist., GO
     6.40%, 2/1/11                1,905      2,131

     6.40%, 2/1/12                1,255      1,406

Henry County School 
Dist., GO, 6.45%, 8/1/11          2,100      2,353

Metropolitan Atlanta Rapid Transit Auth.
  Sales Tax
     6.55%, 7/1/20 
     (Prerefunded 7/1/01!)        5,500      6,053
     
     6.90%, 7/1/16 
     (MBIA Insured) 
     (Prerefunded 7/1/04!)        5,655      6,540

Municipal Electric Auth. 
of Georgia
     8.125%, 1/1/17               5,680      5,978
     
     6.40%, 1/1/07 
     (AMBAC Insured)              7,500      8,326
     
     7.25%, 1/1/24 
     (AMBAC Insured)              6,500      8,022
     
     5.70%, 1/1/19 
     (FGIC Insured)               5,100      5,228
     
     6.125%, 1/1/14 
     (FGIC Insured)               5,500      5,725

Paulding County, Water and Sewer
     6.00%, 12/1/13 
     (MBIA Insured)               5,000      5,397

Total Georgia (Cost  $91,544)               99,894

IDAHO  0.1%

Idaho HFA, St Lukes Regional 
Med. Center
     VRDN (Currently 3.45%)         500        500

Idaho Housing Agency, 7.70%, 
7/1/17 (FHA Guaranteed)             640        674

Total Idaho (Cost  $1,140)                   1,174

ILLINOIS  3.1%

Chicago
  GO, 5.50%, 1/1/18 
  (AMBAC Insured)                 6,630      6,477
  
  GO, 6.25%, 1/1/15 
  (AMBAC Insured)                 1,000      1,088
  
  GO, 5.125%, 1/1/16 
  (FGIC Insured)                  6,200      5,811
  
  Water, 5.00%, 11/1/20 
  (FGIC Insured)                  4,890      4,442

Cook, Dupage, Kane, Lake, 
McHenry, and Will Counties
  Regional Transportation Auth.
     7.75%, 6/1/19 
     (FGIC Insured)            $  5,350  $   6,819

Illinois EFA, Art Institute of 
Chicago, VRDN 
(Currently 3.35%)                 1,800      1,800

Illinois HFA
  Glen Oak Medical Center, 
  7.00%, 11/15/19                 3,300      3,456
  
  Hinsdale Hosp., 9.00%, 
  11/15/15                        4,670      5,222

Illinois Regional 
Transportation Auth.
     6.70%, 11/1/21 
     (FGIC Insured)               5,000      5,752

Total Illinois (Cost  $39,371)              40,867

INDIANA  1.3%

Indiana HFFA, Clarion Health 
Partners, Inc., 5.50%, 2/15/16    9,205      8,869

Indiana State Office Building 
Commission Capitol Complex, 
Gov't. Center North
     5.25%, 7/1/15 
     (AMBAC Insured)              7,000      6,706

St. Joseph's County Hosp Auth., 
St. Joseph's Medical Center
     6.70%, 12/1/02 
     (MBIA Insured)               1,985      2,196

Total Indiana (Cost  $17,257)               17,771

KENTUCKY  1.4%

Carroll County, PCR, Kentucky 
  Utilities, 7.45%, 9/15/16      15,000     17,022

Kentucky Turnpike Auth., 
Economic Dev.
     7.25%, 5/15/10 
     (Prerefunded 5/15/00!)       1,000      1,101

Total Kentucky (Cost  $16,858)              18,123

LOUISIANA  1.5%

East Baton Rouge Mortgage Fin. Auth.
     7.375%, 3/1/10
     (Escrowed to Maturity)       2,800      3,222

Louisiana, GO, 6.00%, 8/1/02 
  (FGIC Insured)                  5,000      5,343

Louisiana Offshore Terminal 
  Auth., LOOP, 7.60%, 9/1/10     10,440     11,397

Total Louisiana (Cost  $18,533)             19,962

MAINE  0.2%

Maine Housing Auth., 6.10%, 
11/15/15 (AMBAC Insured)       $  3,000  $   3,071

Total Maine (Cost  $3,000)                   3,071

MARYLAND  5.4%

Baltimore City, Convention Center
     6.00%, 9/1/17 
     (FGIC Insured)               1,750      1,803

Baltimore County, Pickersgill 
Retirement Community
     7.70%, 1/1/21                2,000      2,104

Gaithersburg Economic Auth., 
Asbury Methodist Home
     7.85%, 1/1/20 
     (Prerefunded 1/1/00!)        3,000      3,332

Maryland CDA
  Single Family
     5.95%, 4/1/16                7,500      7,566

     5.95%, 7/1/23                5,000      5,025

     6.45%, 4/1/14                2,000      2,078

     7.25%, 4/1/19                2,500      2,630

     7.60%, 4/1/17                7,810      8,141

Maryland HHEFA
  Johns Hopkins Hosp., 
  Zero Coupon, 7/1/19             8,350      2,331
  
  Johns Hopkins Univ., 
  7.50%, 7/1/20                   9,475     10,051
  
  Kennedy Kreiger Institute, 
  6.75%, 7/1/22                   1,500      1,539
  
  Univ. of Maryland Medical System
  7.00%, 7/1/22 
  (FGIC Insured)                  1,500      1,794

Maryland Stadium Auth., Sports Fac.
  5.75%, 3/1/18 
  (AMBAC Insured)                 5,000      5,015

Maryland Water Quality Fin. Administration 
  Revolving Loan Fund
  7.25%, 9/1/12 
  (Prerefunded 9/1/00!)           1,950      2,175

Montgomery County Housing 
Opportunities Commission
Single Family, 7.50%, 7/1/17      1,085      1,144

Prince George's County, 
Dimensions Health Corp.
  5.30%, 7/1/24                   8,685      7,970

Univ. of Maryland, Auxiliary 
  Fac. and Tuition, 5.75%, 
  4/1/17                          6,715      6,830

Total Maryland (Cost  $67,203)              71,528

MASSACHUSETTS  2.3%

Massachusetts Housing Fin. 
Agency, 6.30%, 12/1/14         $  6,250  $   6,483

Massachusetts Bay 
Transportation Auth.
  General Transportation, GO
     7.00%, 3/1/14                3,150      3,714

     7.00%, 3/1/21                6,200      7,375

     5.375%, 3/1/25 
     (AMBAC Insured)              3,500      3,319

Massachusetts HEFA
  Harvard Univ., 6.25%, 
  4/1/20                          5,000      5,515
  
  Massachusetts General Hosp.
     6.00%, 7/1/15 
     (AMBAC Insured)              4,500      4,606

Total Massachusetts (Cost  $28,343)               31,012

MICHIGAN  0.9%

Michigan HDA
  6.45%, 12/1/14                  2,120      2,201
  7.55%, 12/1/15                  1,750      1,849

Michigan Hosp. Fin. Auth.
  Bay Medical Center, 8.25%, 
  7/1/12                          1,000      1,129
  
  Henry Ford Hosp., 5.25%, 
  11/15/20                        5,000      4,690

Univ. of Michigan, Medical 
Service Plan, 3.50%, 12/1/27      1,400      1,400

Univ. of Michigan Hosp., 
VRDN (Currently 3.50%)              200        200

Total Michigan (Cost  $11,176)              11,469

MINNESOTA  1.2%

Northern Minnesota Municipal 
Power Agency, 7.35%, 1/1/02       5,000      5,345

Rochester Health Care Fac.
  Mayo Foundation/Mayo 
  Medical Center
     5.90%, 11/15/10              2,000      2,142

     6.25%, 11/15/21              3,000      3,174

Univ. of Minnesota, Residual 
Interest Bond / Inverse Floater
     (Currently 5.919%), 
     8/15/03                      5,800      5,851

Total Minnesota (Cost  $15,064)                   16,512

MISSISSIPPI  0.7%

Claiborne County, PCR, 
Systems Energy Resources
  7.30%, 5/1/25                $  2,750  $   2,881

  9.875%, 12/1/14                 3,400      3,746

Mississippi Home Corp., 
Single Family
  9.25%, 3/1/12 
  (FGIC Insured)                    670        720

Warren County, PCR, 
Mississippi Power and Light
     7.00%, 4/1/22                1,500      1,593

Total Mississippi (Cost  $8,621)             8,940

MISSOURI  0.3%

Joplin IDA, Tri-State 
Osteopathic Hosp. Assoc.
     8.25%, 12/15/14              1,375      1,487

Missouri HEFA
  Bethesda Health Group, 
  7.50%, 8/15/12                  1,250      1,334
  
  Washington Univ., VRDN 
  (Currently 3.45%)               1,000      1,000

Total Missouri (Cost  $3,573)                3,821

NEBRASKA  0.2%

Omaha Public Power Dist., 
Electric System
     6.20%, 2/1/17 
     (Escrowed to Maturity)       3,000      3,271

Total Nebraska (Cost  $2,987)                3,271

NEVADA  0.6%

Clark County School Dist., 
Limited Tax School Improvement, GO
     7.00%, 6/1/11 
     (MBIA Insured)               3,500      4,098

Nevada, Municipal Bond Bank, GO
     7.25%, 11/1/10
     (Escrowed to Maturity)       3,050      3,468

Nevada Housing Division, 
Single Family, 7.85%, 10/1/15       980      1,028

Total Nevada (Cost  $7,472)                  8,594

NEW HAMPSHIRE  0.7%

New Hampshire Higher Ed. 
and Health Fac., Dartmouth College
     5.70%, 6/1/27**           $ 10,000  $   9,999

Total New Hampshire 
(Cost  $9,787)                               9,999

NEW JERSEY  1.7%

New Jersey Sports and 
Exposition Auth., Monmouth Park
     8.00%, 1/1/25                4,500      4,966
New Jersey Transportation 
Trust Fund Auth.
  Transportation Systems
     5.25%, 6/15/15               5,000      4,851

     6.00%, 6/15/02 
     (AMBAC Insured)             10,000     10,716

New Jersey Turnpike Auth., 
  6.50%, 1/1/16 
  (MBIA Insured)                  2,000      2,240

Total New Jersey 
(Cost  $21,848)                             22,773

NEW MEXICO  0.7%

Farmington, PCR
  Public Service Co. of 
  New Mexico
     6.30%, 12/1/16               2,400      2,430
  
     6.375%, 4/1/22               4,325      4,388

Gallup, PCR, Plains Electric Generation and Transmission Coop.
     6.65%, 8/15/17 
     (MBIA Insured)               2,000      2,206

Total New Mexico (Cost  $8,718)              9,024

NEW YORK  12.7%

Dormitory Auth. of the State of New York
  City Univ.
     5.75%, 7/1/13               10,000      9,989

     6.00%, 7/1/14               10,000     10,271

     5.75%, 7/1/18 
     (AMBAC Insured)              5,000      5,162
  
  New York State Dept. 
  of Health, 5.50%, 7/1/23        4,250      3,944
  
  State Univ. Ed. Fac., 
  5.25%, 5/15/19                  3,325      3,086
  
  Vassar College, 7.25%, 
  7/1/15                          2,000      2,222

New York City, GO
     5.875%, 8/1/24            $  5,000  $   4,806

     6.00%, 2/15/25               5,000      4,868

     6.00%, 8/15/26               5,000      4,885

     6.00%, 10/15/26              6,500      6,350

     6.25%, 8/1/09                9,550      9,921

     6.375%, 8/1/04               4,145      4,401

     8.00%, 8/1/16                  180        207

     6.00%, 12/1/18, 
     (FSA Insured)
     (Escrowed to Maturity)       5,000      5,056

New York State Environmental 
Fac. Corp.
  PCR, State Water 
  Revolving Fund
     6.90%, 11/15/15              5,365      6,081

New York State Housing 
  Fin. Agency
  State Univ. Construction
     7.80%, 5/1/01 
     (Escrowed to Maturity)       2,000      2,258

New York State Local Gov't. 
Assistance Corp.
  Public Benefit Corp.
     5.50%, 4/1/21               16,135     15,510

     7.20%, 4/1/04                5,000      5,594

New York State Medical Care Fac. Fin. Agency
  Albany and St. John's Medical Center
     6.20%, 2/15/28 
     (FHA Guaranteed)             3,480      3,597
  
  Buffalo General Hosp.
     6.00%, 8/15/14 
     (FHA Guaranteed)             8,975      9,098
  
  Mental Health Services, 
  6.50%, 8/15/24                  6,000      6,298
  
  New York Hosp.
     6.50%, 8/15/29 
     (AMBAC Insured)              4,625      5,036

New York State Urban Dev. Corp.
  Correctional Capital Fac., 
  5.50%, 1/1/16                   3,500      3,296
  
  Senior Lien Corp.
     5.375%, 7/1/22               9,000      8,598
  
  5.50%, 7/1/26                  10,000      9,633

Triborough Bridge and Tunnel 
Auth., 5.50%, 1/1/17                              20,00019,998

Total New York (Cost  $159,580)            170,165

NORTH CAROLINA  2.5%

Cumberland County, Civic 
Center, COP
  6.40%, 12/1/24 
  (AMBAC Insured)              $  2,750  $   2,981

North Carolina Eastern 
Municipal Power Agency
  6.50%, 1/1/18 (Escrowed 
  to Maturity)                    1,155      1,324
  
  7.50%, 1/1/10                   4,330      5,017

  7.50%, 1/1/10 (Escrowed 
  to Maturity)                    4,650      5,628
  
  5.875%, 1/1/21 
  (MBIA Insured)                  3,525      3,550

North Carolina Housing Fin. 
Agency, 7.40%, 3/1/28             2,150      2,230

North Carolina Medical Care Commission
  Duke Univ. Hosp., 
  5.25%, 6/1/26                   5,000      4,674
  
  Stanly Memorial Hosp.
  7.80%, 10/1/19 
  (Prerefunded 10/1/99!)          3,000      3,322

Univ. of North Carolina, 
Univ. of North Carolina Hosp.
     5.25%, 2/15/26               4,620      4,352

Total North Carolina 
(Cost  $30,426)                             33,078

NORTH DAKOTA  0.3%

Mercer County, PCR, Basin 
  Electric Power
     6.05%, 1/1/19 
     (AMBAC Insured)              4,500      4,662

Total North Dakota (Cost  $4,540)                 4,662

OHIO  2.0%

Cleveland

  Public Power System
     5.00%, 11/15/20 
     (MBIA Insured)               5,000      4,615
  
  Waterworks, 5.50%, 1/1/13 
     (MBIA Insured)               4,765      4,840

Dayton Special Fac., 
Emery Air Freight, 
  6.05%, 10/1/09                  2,500      2,557

Franklin County
     GO, 6.80%, 12/1/09
     (Prerefunded 12/1/00!)       2,860      3,158
     
     GO, 6.80%, 12/1/10
     (Prerefunded 12/1/00!)       3,240      3,578
  
  County Courthouse (Limited Tax), GO
     6.375%, 12/1/17
     (Prerefunded 12/1/01!)       2,000      2,202

Montgomery County Hosp. Fac., 
Kettering Medical Center
     7.375%, 4/1/02 
     (MBIA Insured)            $  2,500  $   2,683

Ohio Water Dev. Auth., PCR, 
Cleveland Electric, 
  7.70%, 8/1/25                   2,700      2,923

Total Ohio (Cost  $24,970)                  26,556

OKLAHOMA  0.8%

Grand River Dam Auth., 5.50%, 
6/1/13 (AMBAC Insured)            5,000      5,124

Tulsa County Home Fin. Auth., 
Single Family
     6.90%, 8/1/10 
     (FGIC Insured)
     (Escrowed to Maturity)       4,250      4,921

Total Oklahoma (Cost  $9,173)               10,045

PENNSYLVANIA  3.2%

Beaver County IDA, PCR, 
Cleveland Electric, 7.75%, 
7/15/25                                  3,900    4,260

Pennsylvania Convention 
Center Auth.
     6.70%, 9/1/14 
     (FSA Insured)                5,000      5,513

Pennsylvania HEFA, Carnegie 
Mellon Univ., 3.45%, 11/1/29      1,400      1,400

Pennsylvania Intergovernmental 
Cooperative Auth.
  Special Tax
     6.75%, 6/15/21 
     (FGIC Insured)
     (Prerefunded 6/15/05!)       4,750      5,423
     
     5.00%, 6/15/22 
     (MBIA Insured)               5,000      4,478

Philadelphia
  Water and Wastewater
     5.50%, 6/15/06 
     (MBIA Insured)              12,750     13,334
     
     5.50%, 6/15/07 
     (MBIA Insured)               4,000      4,169

Philadelphia Hosp. and 
Higher Ed. Fac. Auth.
  Children's Hosp. of 
  Philadelphia
     VRDN (Currently 3.45%)       4,000      4,000

Total Pennsylvania (Cost  $41,105)                42,577

PUERTO RICO  1.6%

Puerto Rico Commonwealth, GO
     5.65%, 7/1/15 
     (MBIA Insured)               7,300      7,562

Puerto Rico Ind. Medical 
Higher Ed. and Environmental 
Pollution Control Fac. Fin. Auth.
  Catholic Univ. of 
  Puerto Rico, 
  9.25%, 12/1/97               $  1,730  $   1,793

Puerto Rico Infrastructure 
Fin. Auth.
     7.50%, 7/1/09                9,955     10,572

     7.75%, 7/1/08                1,740      1,853

Total Puerto Rico (Cost  $20,546)                 21,780

RHODE ISLAND  1.5%

Rhode Island Health and Ed. 
Building Corp.
  Bryant College, 6.125%, 
  6/1/19 (MBIA Insured)           5,000      5,125
  
Rhode Island Hosp.
  Residual Interest Bond/
  Inverse Floater
  (Currently 9.968%), 8/15/21
  (FGIC Insured)                  1,000      1,231

Rhode Island Housing and 
Mortgage Fin. Corp.
  Homeownership Opportunity
     6.70%, 10/1/14               5,000      5,253

     7.85%, 10/1/16               8,000      8,454

Total Rhode Island (Cost  $18,852)                20,063

SOUTH CAROLINA  2.8%

Fairfield County, PCR, South 
Carolina Electric and Gas Co.
     6.50%, 9/1/14                4,000      4,301

Greenville Hosp. System
  Board of Trustees, Hosp. Fac.
     5.25%, 5/1/17                3,000      2,808

     5.50%, 5/1/16                5,250      5,110

Piedmont Municipal Power Agency
     6.50%, 1/1/14 
     (FGIC Insured)               3,000      3,351
     
     6.50%, 1/1/14 
     (FGIC Insured)
     (Prerefunded 9/9/99!)          500        563

South Carolina Public Service Auth.
     6.25%, 1/1/22 
     (AMBAC Insured)             17,750     18,810

South Carolina Public Service Auth.
  Santee Cooper
     7.00%, 7/1/12 
     (Prerefunded 7/1/01!)     $  1,650  $   1,848

Total South Carolina 
  (Cost  $34,675)                           36,791

SOUTH DAKOTA  0.3%

South Dakota HDA
  Homeownership
     5.95%, 5/1/16                2,000      2,010

     6.65%, 5/1/14                2,000      2,095

Total South Dakota (Cost  $4,000)                 4,105

TENNESSEE  1.8%

Chattanooga Health, Ed. and 
Housing Fac. Board
  Memorial Hosp.
     6.625%, 9/1/07 
     (MBIA Insured)               2,950      3,349
     
     6.625%, 9/1/08 
     (MBIA Insured)               3,150      3,576

Metropolitan Gov't. of Nashville 
and Davidson Counties
  Water and Sewer
     Step, Zero Coupon, 
     1/1/12 (FGIC Insured)       11,250     12,314

Shelby County Health Ed. and 
Housing Fac. Board
  Le Bonhuer Children's 
  Medical Center
     5.50%, 8/15/12 
     (MBIA Insured) 
     (Escrowed to Maturity)       4,250      4,374

Total Tennessee (Cost  $22,426)                   23,613

TEXAS  7.0%

Amarillo Health Fac. Corp., 
Sears Panhandle Retirement
     7.75%, 8/15/26               5,000      5,030

Arlington Independent 
School Dist., Capital 
Appreciation, GO
     Zero Coupon, 2/15/16         9,650      3,130

Brazos River Auth., Houston 
Lighting and Power
     8.25%, 5/1/15               18,000     19,009

Denison Hosp. Auth., Texoma 
Medical Center, 7.00%, 
8/15/14                                  4,245    4,450

Harris County, Toll Road, GO
     Zero Coupon, 8/15/04 
     (MBIA Insured)               6,000      4,190

Harris County Health Fac. 
Dev. Corp.
  Memorial Hosp.
     7.125%, 6/1/15 (Prerefunded 
     6/1/02!)                  $  2,500  $   2,843

     5.50%, 6/1/24 
     (MBIA Insured)               2,500      2,391
  
  Methodist Hosp., VRDN 
  (Currently 3.45%)               7,500      7,500
  
  Sisters of Charity of the 
  Incarnate Word
     7.10%, 7/1/21                4,000      4,370
  
  St. Luke's Episcopal Hosp.
     VRDN (Currently 3.45%)       1,000      1,000
     
  Texas Medical Center, 7.375%, 
     5/15/20
     (MBIA Insured)
     (Prerefunded 5/15/00!)       7,645      8,479

Harris County Hosp. Dist., 
7.40%, 2/15/10 (AMBAC Insured)    1,500      1,795

Matagorda County Navigation Dist., PCR
  Central Power and Light, 
  7.50%, 12/15/14                 1,500      1,649
  
  Houston Lighting and Power
     7.20%, 12/1/18 
     (FGIC Insured)               3,600      3,913

Northwest Texas Independent 
School Dist.
  School Buildings, GO, 
  Zero Coupon, 8/15/17            4,000      1,173

Texas
  Veterans Housing 
  Assistance, GO
     6.25%, 12/1/15               3,290      3,357

     7.40%, 12/1/20              14,205     15,688

Texas Department of Housing 
and Community Affairs
  NHP Foundation, 
  6.40%, 1/1/27                   3,500      3,569

Total Texas (Cost  $87,856)                 93,536

UTAH  1.4%

Intermountain Power Agency
  Power Supply
     7.20%, 7/1/19                6,200      6,383

     7.50%, 7/1/21                4,750      5,018

     5.75%, 7/1/19 
     (MBIA Insured)**             8,000      7,959

Total Utah (Cost  $18,392)                  19,360

VERMONT  0.5%

Vermont Ed. and Health 
Buildings Fin. Agency
  Medical Center Hosp. of Vermont
     7.35%, 9/1/13 
     (FGIC Insured)            $  4,650  $   4,949
     
     7.45%, 9/1/23 
     (FGIC Insured)               2,000      2,129

Total Vermont (Cost  $6,650)                 7,078

VIRGINIA  6.2%

Fairfax County IDA, Inova 
Health Care System, 6.00%, 
8/15/26                                  10,815   10,922

Fairfax County Water Auth., 
6.00%, 4/1/22                    10,250     10,497

Fredericksburg IDA, Medicorp 
Health System 
     5.25%, 6/15/23 
     (AMBAC Insured)              2,200      2,057

Hanover County IDA, Memorial 
Regional Medical Center
     6.375%, 8/15/18 
     (MBIA Insured)               4,185      4,582

Henrico County IDA
  Bon Secours Health System, 
  St. John's Hosp.
     7.50%, 9/1/15 (Prerefunded 
     7/1/00!)                     1,800      1,998
  Bon Secours Health System, 
  St. Mary's Hosp.
     7.50%, 9/1/07 (Prerefunded 
     8/1/00!)                     1,580      1,743

Peninsula Ports Auth., Shell 
Oil, VRDN (Currently 3.50%)       3,500      3,500


Richmond, GO, BAN, 
VRDN (Currently 3.30%)            1,000      1,000

Roanoke IDA, Roanoke Memorial 
Hosp., Carilion Health System
  VRDN (Currently 3.25%)          5,000      5,000

Virginia HDA
     6.25%, 7/1/11                5,000      5,156

     6.75%, 7/1/14                7,435      7,854

     6.80%, 7/1/17                8,900      9,365

     6.90%, 7/1/13               11,100     11,513

Virginia Transportation 
Board, Route 28 Project, 
6.50%, 4/1/18                     3,000      3,209

Winchester IDA
  Winchester Medical Center
     Embedded Interest Rate Swap
     (Currently 5.33%), 1/1/05
     (AMBAC Insured)              1,500      1,489

Winchester IDA
  Winchester Medical Center
     Embedded Interest Rate 
     Swap(Currently 5.43%), 
     1/1/06 
     (AMBAC Insured)           $  1,500  $   1,494
     
     Embedded Interest Rate Swap
     (Currently 5.53%), 1/1/07 
     (AMBAC Insured)              1,600      1,599

Total Virginia (Cost  $80,359)              82,978

WASHINGTON  4.6%

Port of Seattle, 7.40%, 
12/1/09                                  1,000    1,121

Tacoma
  Electric
     Residual Interest Bond / Inverse Floater
     (Currently 9.195%), 1/2/15
     (AMBAC Insured)
     (Prerefunded 1/1/01!)        5,000      5,919
     
     6.25%, 1/1/15 
     (FGIC Insured)               7,550      7,974

Washington, GO, 5.70%, 10/1/15   14,000     14,471

Washington HFA, Fred 
Hutchinson Cancer Research 
Center
     VRDN (Currently 3.45%)         400        400

Washington Public Power 
Supply System
  7.25%, 7/1/09                   3,000      3,474
  7.25%, 7/1/15 
  (Prerefunded 1/1/00!)           2,200      2,414
     7.50%, 7/1/15 
     (Prerefunded 7/1/99!)        7,110      7,774
     
     6.25%, 7/1/12 
     (FSA Insured)                5,000      5,267
     
     5.60%, 7/1/15 
     (MBIA Insured)               6,500      6,411
     
     6.25%, 7/1/17 
     (MBIA Insured)               6,000      6,210

Total Washington (Cost  $56,110)                  61,435

WEST VIRGINIA  0.9%

Kanawha County Building Commission
  Charleston Area Medical Center
     7.50%, 11/1/08
     (Prerefunded 11/1/99!)       2,250      2,480

Marshall County, PCR, 
Mountaineer Carbon Company
     VRDN (Currently 3.45%)       1,100      1,100

West Virginia Hosp. Fin. Auth., 
Charleston Area Medical Center
     5.75%, 9/1/13 
     (MBIA Insured)            $  4,500  $   4,589

West Virginia State Parkways,
Economic Dev. and Tourism Auth.
     Residual Interest Bond / Inverse Floater
     (Currently 7.849%), 5/16/19
     (FGIC Insured)               3,600      3,546

Total West Virginia (Cost  $11,304)               11,715

WISCONSIN  0.6%

Wisconsin HEFA, United Health 
Group
     5.50%, 12/15/16 
     (MBIA Insured)               6,540      6,333

Wisconsin Public Power Agency
     7.00%, 7/1/02 
     (AMBAC Insured)              1,500      1,634

Total Wisconsin (Cost  $7,734)               7,967

Total Investments in Securities
99.8% of Net Assets 
(Cost  $1,251,516)                     $ 1,333,764

Other Assets Less Liabilities                2,862

NET ASSETS                             $ 1,336,626
                                      ____________
Net Assets Consist of:

Accumulated net investment 
income - net of distributions          $       660

Accumulated net realized gain/
loss - net of distributions                (8,933)

Net unrealized gain (loss)                  82,248

Paid-in-capital applicable to 
139,418,543 shares of $1.00 par
value capital stock outstanding; 
500,000,000 shares authorized            1,262,651

NET ASSETS                             $ 1,336,626
                                      ____________

NET ASSET VALUE PER SHARE              $      9.59
                                      ____________

       ** When-issued security
        ! Used in determining portfolio maturity
    AMBAC AMBAC Indemnity Corp.
      BAN Bond Anticipation Note
     BIGI Bond Investors Guaranty Insurance
      CDA Community Development Administration
      COP Certificates of Participation
      EFA Educational Facility Authority
     FGIC Financial Guaranty Insurance Company
      FHA Federal Housing Authority
      FSA Financial Security Assurance Corp.
       GO General Obligation
      HDA Housing Development Authority
     HEFA Health & Educational Facility Authority
      HFA Health Facility Authority
     HFFA Health Facility Financing Authority
    HHEFA Health & Higher Educational Facility Authority
      IDA Industrial Development Authority
      IDB Industrial Development Bond
     MBIA Municipal Bond Investors Assurance Corp.
      PCR Pollution Control Revenue
      RAN Revenue Anticipation Note
     STEP Stepped Coupon Bond
     VRDN Variable Rate Demand Note

The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Tax-Free Income Fund
Statement of Operations
In thousands

                                             Year
                                            Ended
                                          2/28/97

Investment Income

Interest income                        $   80,130

Expenses
    Investment management                   6,426
    Shareholder servicing                     782
    Custody and accounting                    243
    Registration                               39
    Prospectus and shareholder reports         30
    Directors                                  14
    Legal and audit                            14
    Miscellaneous                              37

    Total expenses                          7,585

Net investment income                      72,545

Realized and Unrealized Gain (Loss)

Net realized gain (loss)
    Securities                             (2,051)
    Futures                                (1,002)

    Net realized gain (loss)               (3,053)

Change in net unrealized gain or loss
    Securities                             (7,319)
    Futures                                   258

    Change in net unrealized gain 
    or loss                                (7,061)

Net realized and unrealized gain 
(loss)                                            (10,114)

INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS                 $   62,431

The accompanying notes are an integral part of these financial
statements.

T. Rowe Price Tax-Free Income Fund
Statement of Changes in Net Assets
In thousands
                                      Year
                                     Ended
                                   2/28/97     2/29/96
Increase (Decrease) 
in Net Assets
Operations
    Net investment income      $    72,545 $    74,269
    Net realized gain (loss)        (3,053)     19,515
    Change in net unrealized 
    gain or loss                    (7,061)     37,333

    Increase (decrease) in 
    net assets from operations      62,431     131,117

Distributions to shareholders
    Net investment income          (72,541)    (74,269)

Capital share transactions *
    Shares sold                    133,711     176,155
    Distributions reinvested        48,012      49,694
    Shares redeemed               (210,494)   (235,865)

    Increase (decrease) in 
    net assets from capital
    share transactions             (28,771)    (10,016)

Net Assets

Increase (decrease) during 
period                               (38,881)          46,832
Beginning of period              1,375,507   1,328,675

End of period                  $ 1,336,626 $ 1,375,507
                               _______________________
*Share information
    Shares sold                     14,128      18,568
    Distributions reinvested         5,064       5,233
    Shares redeemed                (22,237)    (24,917)

    Increase (decrease) in 
    shares outstanding              (3,045)     (1,116)

The accompanying notes are an integral part of these financial
statements. 

T. Rowe Price Tax-Free Income Fund
    February 28, 1997

Notes to Financial Statements

Note 1 - Significant Accounting Policies

T. Rowe Price Tax-Free Income Fund, Inc. (the fund), is
registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company and
commenced operations on October 26, 1976.

Valuation  Debt securities are generally traded in the
over-the-counter market. Investments in securities are stated at
fair value as furnished by dealers who make markets in such
securities or by an independent pricing service, which considers
yield or price of bonds of comparable quality, coupon, maturity,
and type, as well as prices quoted by dealers who make markets
in such securities.

Assets and liabilities for which the above valuation procedures
are inappropriate or are deemed not to reflect fair value are
stated at fair value as determined in good faith by or under the
supervision of the officers of the fund, as authorized by the
Board of Directors.

Premiums and Discounts  Premiums and original issue discounts on
municipal securities are amortized for both financial reporting
and tax purposes. Market discounts are recognized upon
disposition of the security as gain or loss for financial
reporting purposes and as ordinary income for tax purposes.

Other  Income and expenses are recorded on the accrual basis.
Investment transactions are accounted for on the trade date.
Realized gains and losses are reported on the identified cost
basis. Distributions to shareholders are recorded by the fund on
the ex-dividend date. Income and capital gain distributions are
determined in accordance with federal income tax regulations and
may differ from those determined in accordance with generally
accepted accounting principles.

Note 2 - Investment Transactions

Purchases and sales of portfolio securities, other than
short-term securities, aggregated $524,777,000 and $519,525,000,
respectively, for the year ended February 28, 1997.

Note 3 - Federal Income Taxes

No provision for federal income taxes is required since the fund
intends to continue to qualify as a regulated investment company
and distribute all of its income. The fund has unused realized
capital loss carryforwards for federal income tax purposes of
$7,665,000, of which $4,521,000 expires in 2003, and $3,144,000
in 2005. The fund intends to retain gains realized in future
periods that may be offset by available capital loss
carryforwards.

In order for the fund's capital accounts and distributions to
shareholders to reflect the tax character of certain
transactions, the following reclassifications were made during
the year ended February 28, 1997. The results of operations and
net assets were not affected by the reclassifications.

Undistributed net investment income       $     15,000
Undistributed net realized gain                (75,000)

Paid-in-capital                                 60,000

At February 28, 1997, the aggregate cost of investments for
federal income tax and financial reporting purposes was
$1,251,516,000, and net unrealized gain aggregated $82,248,000,
of which $82,889,000 related to appreciated investments and
$641,000 to depreciated investments.


Note 4 - Related Party Transactions

The investment management agreement between the fund and T. Rowe
Price Associates, Inc. (the manager), provides for an annual
investment management fee, of which $491,000 was payable at
February 28, 1997. The fee is computed daily and paid monthly,
and consists of an individual fund fee equal to 0.15% of average
daily net assets and a group fee. The group fee is based on the
combined assets of certain mutual funds sponsored by the manager
or Rowe Price-Fleming International, Inc. (the group). The group
fee rate ranges from 0.48% for the first $1 billion of assets to
0.305% for assets in excess of $50 billion. At February 28,
1997, and for the year then ended, the effective annual group
fee rate was 0.33%. The fund pays a pro-rata share of the group
fee based on the ratio of its net assets to those of the group.

T. Rowe Price Tax-Free Income Fund

In addition, the fund has entered into agreements with the
manager and a wholly owned subsidiary of the manager, pursuant
to which the fund receives certain other services. The manager
computes the daily share price and maintains the financial
records of the fund. T. Rowe Price Services, Inc., is the fund's
transfer and dividend disbursing agent and provides shareholder
and administrative services to the fund. The fund incurred
expenses pursuant to these related party agreements totaling
approximately $696,000 for the year ended February 28, 1997, of
which $69,000 was payable at period-end.

During fiscal year 1996, Coopers & Lybrand L.L.P. succeeded
Price Waterhouse LLP as independent accountants for the Tax-Free
Income Fund, a decision that was approved by the fund's Board of
Directors. During the two fiscal years preceding the change, the
fund received unqualified opinions and had no disagreements with
Price Waterhouse LLP or reportable events that caused the
change.

T. Rowe Price Tax-Free Income Fund

Report of Independent Accountants

To the Shareholders and Board of Directors
of T. Rowe Price Tax-Free Income Fund, Inc.

We have audited the accompanying statement of net assets of
T.Rowe Price Tax-Free Income Fund, Inc. as of February 28, 1997,
and the related statement of operations, statement of changes in
net assets and financial highlights for each of the two years in
the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The
financial highlights for each of the preceding years presented
were audited by other auditors, whose report, dated March 17,
1995, expressed an unqualified opinion thereon. 

We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
investments owned as of February 28, 1997, by correspondence
with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of T. Rowe Price Tax-Free
Income Fund, Inc. as of February 28, 1997, the results of its
operations, the changes in its net assets, and financial
highlights for each of the respective periods stated in the
first paragraph, in conformity with generally accepted
accounting principles.

COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
March 19, 1997

Investment Services And Information

Knowledgeable Service Representatives

By Phone 1-800-225-5132  Available Monday through Friday from 
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.

In Person  Available in T. Rowe Price Investor Centers.

Account Services

Checking  Available on most fixed income funds ($500 minimum).

Automatic Investing  From your bank account or paycheck. 

Automatic Withdrawal  Scheduled, automatic redemptions.

Distribution Options  Reinvest all, some, or none of your
distributions.

Automated 24-Hour Services  Including Tele*Access(registered
trademark) and T. Rowe Price OnLine.

Discount Brokerage*

Individual Investments  Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates. 


Investment Information

Combined Statement  Overview of your T. Rowe Price accounts.

Shareholder Reports  Fund managers' reviews of their strategies
and results.

T. Rowe Price Report  Quarterly investment newsletter discussing
markets and financial strategies.

Performance Update  Quarterly review of all T. Rowe Price fund
results.

Insights  Educational reports on investment strategies and
financial markets.

Investment Guides  Asset Mix Worksheet, College Planning Kit,
Personal Strategy Planner, Retirees Financial Guide, and
Retirement Planning Kit.

*A division of T. Rowe Price Investment Services, Inc.  Member
NASD/SIPC.

T. Rowe Price Mutual Funds

Stock Funds

Domestic

Balanced
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Dividend Growth
Equity Income
Equity Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
OTC**
Science & Technology
Small-Cap Value*
Spectrum Growth
Value

International/Global

Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International

Bond Funds

Domestic Taxable

Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government 
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term

Domestic Tax-free

California Tax-Free Bond
Florida Insured 
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term 
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured 
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term 
Tax-Free Bond
Virginia Tax-Free Bond

International/Global

Global Government Bond
Emerging Markets Bond
International Bond

Money Market Funds

Taxable

Prime Reserve
Summit Cash Reserves
U.S. Treasury Money 

Tax-Free

California Tax-Free Money
New York Tax-Free Money
Summit Municipal 
Money Market
Tax-Exempt Money

Blended Asset Funds

Personal Strategy Income
Personal Strategy Balanced
Personal Strategy Growth

T. Rowe Price No-Load
Variable Annuity

Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio

*   Closed to new investors.
**  Effective May 1, 1997, the fund's name will change to
    Small-Cap Stock.

Please call for a prospectus. Read it carefully before you
invest or send money.

The T. Rowe Price No-Load Variable Annuity [V6021] is issued by
Security Benefit Life Insurance Company. In New York, it
[FSB201(11-96)] is issued by First Security Benefit Life
Insurance Company of New York, White Plains, NY.
T. Rowe Price refers to the underlying portfolios' investment
managers and the distributors, T. Rowe Price Investment
Services, Inc., T. Rowe Price Insurance Agency, Inc., and T.
Rowe Price Insurance Agency of Texas, Inc. The Security Benefit
Group of Companies and the T. Rowe Price companies are not
affiliated. The variable annuity may not be available in all
states. The contract has limitations. Call a representative for
costs and complete details of the coverage.

T. Rowe Price Discount Brokerage

Discount Brokerage

A Division of T. Rowe Price Investment Services, Inc., Member
NASD/SIPC

This low-cost service gives you the opportunity to easily
consolidate all your investments with one company. Through T.
Rowe Price Discount Brokerage, you can buy and sell individual
securities - stocks, bonds, options, and others - at
considerable commission savings. We also provide a wide range of
services, including:

Automated Telephone and Computer Services  You can enter trades,
access quotes, and review account information 24 hours a day,
seven days a week. Any trades executed through these programs
save you an additional 10% on commissions.*

Investor Information  A variety of informative reports, such as
our Brokerage Insights series, S&P Market Month newsletter, and
optional S&P Stock Reports, can help you better evaluate
economic trends and investment opportunities.

Dividend Reinvestment Service  Virtually all stocks held in
customer accounts are eligible for this service, free of charge.

*   Discount applies to our current commission schedule; subject
    to our $35 minimum commission.

For yield, price, last transaction,
current balance, or to conduct 
transactions, 24 hours, 7 days 
a week, call Tele*Access(registered trademark): 
1-800-638-2587 toll free

For assistance 
with your existing 
fund account, call: 
Shareholder Service Center
1-800-225-5132 toll free 
625-6500 Baltimore area

To open a Discount Brokerage 
account or obtain information,
call:   1-800-638-5660 toll free

Internet address:
http://www.troweprice.com

T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland  21202

This report is authorized for 
distribution only to shareholders 
and to others who have received 
a copy of the prospectus of the 
T. Rowe Price Tax-Free Income Fund(registered trademark).

Investor Centers:
101 East Lombard St.
Baltimore, MD 21202

T. Rowe Price 
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117

Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006

ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071

4200 West Cypress St.
10th Floor
Tampa, FL 33607

T. Rowe Price Investment Services, Inc., Distributor.

RPRTTFI  2/28/97

THE SHAREHOLDER LETTER AND REPORT FOR THE COMBINED TAX-FREE
FUNDS IS ATTACHED HERE BY ACCESSING THE FOLLOWING:


Annual Report

Tax-Free
Funds
February 28, 1997

T. Rowe Price
Report Highlights

o    Interest rates ended the fiscal year slightly higher than a year ago,
     resulting in moderate returns for municipal bond investors.

o    Municipal bonds outperformed Treasuries during most of the year.

o    All five funds generated greater returns than their peer group averages
     during the year ended February 28.

o    Your funds relied to a great extent on credit research and sector
     selection to enhance returns. Tax-exempt high-yield securities were
     particularly good performers.

o    With the economy showing ongoing strength and the Federal Reserve
     indicating a bias toward tighter monetary policy, our outlook is
     somewhat cautious for the coming months.

Fellow Shareholders

The municipal bond market and your funds generated moderate returns during
the fiscal year ended February 28, 1997. Interest rates fluctuated during the
year and ended slightly higher than where they started at the end of last
February. The U.S. economy was characterized by modest wage inflation with
low unemployment, prompting the Federal Reserve to leave monetary policy
unchanged since January 1996.

MARKET ENVIRONMENT

Much of the movement in interest rates reflected the market's anticipation
of action or inaction by the Federal Reserve. The fiscal year began with
interest rates rising due to signs of both stronger growth and the
realization that balanced budget legislation would not be passed in 1996. As
market expectations for a tightening in monetary policy grew throughout the
first half, rates continued to increase. The long-term Treasury bond yield
remained in a trading range between 6.75% and 7.20% during the third quarter.
Intermediate and long-term rates then reversed course and fell through
November as it became evident that the economy was slowing in the third
quarter and the Federal Reserve was not going to raise rates. Another uptick
in rates took place late in 1996 as investors once again perceived strength
in the economy and anticipated possible tightening by the Federal Reserve.

Chart 1 - Municipal Bond and Yield Notes line chart

In the municipal market, rates came full circle over the year, rising about
45 basis points (100 basis points equal one percent) during the first six
months before settling slightly above year-ago levels. Long-term high-grade
general obligation bonds yielded 5.50% on February 28, 1997, versus 5.75% on
August 31, 1996, and 5.45% a year ago. Five-year high-grade bonds were 20
basis points higher in yield than in February 1996. One-year note rates
traded within a 70-basis-point range during the year, ending at 3.70%
compared with 3.25% a year ago.

Municipals provided higher returns than long-term Treasuries throughout most
of the fiscal year, as concerns regarding tax reform and flat tax legislation
diminished. As a result, long-term municipal yields were 81% of the yield on
comparable Treasuries on February 28, a level that benefits investors in
brackets above 19%, whereas a year ago with the ratio at 87%, investors in
brackets upwards of 13% benefited from municipals.

Lower-quality bonds performed well as the spread between their yields and
those of higher-rated bonds narrowed, resulting in good price appreciation.
The narrowing yield spread between different quality bonds reflected a solid
economy with no immediate concern about recession and also the growing number
of insured bonds in the market, which shrunk the supply of higher-yielding
bonds.

New issuance in both the long- and short-term markets increased in 1996 for
the first time since 1993, reflecting healthier state and local economies,
a backlog of borrowing needs, and less resistance from the voters to new
bond-financed projects. The increased supply was well received by investors
after two years of declining issuance.

TAX-EXEMPT MONEY FUND

Our longer maturity strategy resulted in attractive returns, helping your
fund outperform its peer group during both the 6- and 12-month periods ended
February 28, 1997.

Chart 2- Performance Comparison

Periods Ended 2/28/976 Months 12 Months
____________________________________________________________

Tax-Exempt Money Fund1.51%       3.05%

Lipper Tax-Exempt Money
Market Funds Average1.45         2.91

Despite last year's stable monetary policy, the yields of 6- and 12-month
municipal notes managed to vacillate in a range of 70 basis points. At the
end of the fiscal year, yields of 1- to 30-day maturities were little changed
from a year ago, but yields on 60-day to 1-year maturities were 20 to 50
basis points higher.

Your fund ended the fiscal year with a weighted average maturity of 58 days,
shorter than the 65 days of a year earlier and 66 days at the end of August.
By comparison, the weighted average maturity for our peer group at the end
of February was only 46 days. Lending support to our modestly longer maturity
posture was the robust demand generated by cash inflows to tax-exempt money
funds, which expanded to a record $147 billion. An additional $12 billion in
new cash inflows more than offset a $5 billion increase in the supply of new
issues.

We emphasized longer maturities throughout the year, since we felt reasonably
confident that the Federal Reserve would wait for more concrete evidence of
rising inflation before raising the federal funds rate. We took advantage of
the upwardly sloping yield curve by concentrating more on 6- and 12-month
municipal notes, which provided an average of 40 basis points more yield than
shorter maturities. We also reduced the percentage of variable rate
securities in the portfolio. We will carefully consider recent remarks by
Chairman Greenspan about a possible preemptive move against inflation (see
the Outlook section) as we set our maturity strategy in coming months.

TAX-FREE SHORT-INTERMEDIATE FUND

Duration management and credit research helped your fund outperform the
average for similar funds during both the 6- and 12- month periods ended
February 28.

Chart 3- Performance Comparison

Periods Ended 2/28/97         6 Months      12 Months
_____________________________________________________

Tax-Free Short-
Intermediate Fund                3.13%         4.02%

Lipper Short-Intermediate
Debt Funds Average               3.07          3.72

The threat of higher short-term interest rates early in the year prompted us
to keep duration (a measure of a fund's sensitivity to changes in interest
rates) around 2.6 years, near the short end of our usual range. However, as
we moved into the third quarter, signs of slower growth began to emerge,
causing yields on five-year maturities to fall from 4.65% in early September
to 4.15% in early December. We extended the fund's duration to about 3.0
years, gaining some but not all of the price appreciation in the rally.
Recently, we reduced duration to 2.8 years because of the decreasing
likelihood of further increases in bond prices.

While our timing on duration was modestly successful, we were able to enhance
performance with credit research and sector selection. The prolonged strength
of the economy improved the financial condition of many municipal issuers.
Last year, Standard & Poor's upgraded credit ratings on more than three times
as many issues as it downgraded. As a result, lower-rated securities
outperformed higher-rated AAA issues, narrowing the yield differential
between them. We had positioned the fund to take advantage of this phenomenon
in both 1995 and 1996 by increasing fund exposure to lower-rated states such
as Massachusetts, Louisiana, New York, and Pennsylvania. We also purchased
financially sound hospital revenue bonds, which we think will benefit from
demographic changes.

Two sectors we continued to underweight are municipally owned electric
utilities and housing bonds. In many cases, municipal utilities sell
high-cost nuclear power, and deregulation of the industry should allow
low-cost providers to compete more effectively. As a result, many local
utilities were downgraded last year by Moody's and Standard & Poor's.

We avoided short-term housing bonds primarily because of their structure, not
because of creditworthiness. Housing bonds are issued at par, while we prefer
higher-yielding bonds at premium prices. If interest rates should rise, the
prices of short-term par bonds tend to fall faster than bonds trading at a
premium with the same duration.

TAX-FREE INSURED INTERMEDIATE BOND FUND

A combination of higher yield, credit management, and a lower fund expense
ratio enabled your fund to match the average return of similar funds over the
six-month period and slightly surpass it over 12 months.

Chart 4- Performance Comparison

Periods Ended 2/28/97         6 Months      12 Months
_____________________________________________________

Tax-Free Insured
Intermediate Bond Fund           4.00%         4.19%

Lipper Intermediate
Municipal Debt Funds Average     3.98          4.14

Interest rates over the past 12 months have been confined to a relatively
tighter trading range than in recent years. Yields on 10-year AAA-rated
securities ranged between 4.65% and 5.30% since early March, a 65-basis-point
range compared with 100 basis points a year ago and 155 two years earlier.
The recent tighter range limited returns that could be reaped from duration
management, which generated mixed results over the 6- and 12-month periods.

In the first half, our short posture contributed positively to performance
as interest rates moved higher. We gave back some of these gains in the
second half, as rates turned lower in September while we remained slightly
cautious.

Lower volatility rendered credit research and sector selection increasingly
important in our effort to outperform our peer group. We focused on
undervalued securities within the insured market. Even though two different
issues may carry insurance from the same company, the marketplace sometimes
values them differently. For instance, Denver International Airport is rated
BBB by Moody's and Standard & Poor's. While insurance earns the bonds a AAA
rating from both agencies, the marketplace usually values bonds lower,
according to their underlying rating. Early in the year we increased the
fund's exposure to the Denver Airport bonds because we believed they
represented good value versus other insured bonds.

TAX-FREE INCOME FUND

Overall, it was a year of modest returns for long-term bonds. In this
environment, your fund matched the average performance of its peer group
during the past six months and exceeded it over the year.

Chart 5- Performance Comparison

Periods Ended 2/28/97         6 Months      12 Months
_____________________________________________________

Tax-Free Income Fund             4.80%         4.81%

Lipper General Municipal
Debt Funds Average               4.79          4.51

During much of the year, we kept the fund's duration within a narrow range.
We felt that interest rates were likely to fluctuate more modestly than
during the two prior years, providing few opportunities for aggressive shifts
in strategy. As a result, the fund's duration remained close to 7.5 years for
most of 1996. We increased it slightly in the third quarter but then returned
to a more conservative position near the end of the fiscal year.

With municipal yields flirting with their lows of the past two decades, we
felt there was little chance of a strong rise in bond prices and further rate
declines. Therefore, we focused more on enhancing the portfolio's yield where
we could. This strategy included holding on to older, higher-yielding bonds
and identifying suitable high-yield securities, which performed well in 1996.
Going forward, the opportunity for further price appreciation from
lower-quality bonds seems limited, leading us to be more selective in
considering them.

Bonds insured by third parties began to look more attractive as the amount
of insured new issues rose during the year. Twelve months ago, the yields of
insured municipal bonds were only 10 to 15 basis points higher than those of
high-quality general obligation bonds; by year-end this spread was closer to
25 basis points, making the yields on insured bonds relatively appealing.

We will continue to focus on income enhancement, maintain duration closer to
the low end of our neutral range, and wait for opportunities to extend
maturities. The municipal market's stronger performance relative to taxable
securities during the first two months of the year, combined with a growing
new issues calendar for March, suggests that we will be able to invest at
higher yield levels in coming months.

TAX-FREE HIGH YIELD FUND

The Tax-Free High Yield Fund outperformed its peer group over both the fiscal
year and the most recent six-month period. It has exceeded the average
performance of similar funds for the past nine fiscal years.

Chart 6- Performance Comparison

Periods Ended 2/28/97         6 Months      12 Months
_____________________________________________________

Tax-Free High Yield Fund        5.37%         6.22%

Lipper High Yield Municipal
Debt Funds Average              4.98          5.27

Opportunistic credit selection dominated fund performance last year,
enhancing returns in three important ways. First, several individual holdings
boosted fund returns by outperforming the market because of improved credit
standing and refinancings. Key issues in this category included
investor-owned utility and hospital revenue bonds. Second, the selective sale
of securities and avoidance of certain sectors, such as specialized solid
waste and paper recycling bonds, meant we were able to avoid significant
credit problems. Finally, the fund was a beneficiary of yet another year of
narrowing yield spreads, with lower-quality bonds significantly outperforming
many higher-quality issues.

Your fund's concentration in below-investment-grade holdings fell steadily
last year, from 28% to 23% of net assets. This move reflected a combination
of factors, including ratings upgrades, refinancings, and a continuing
selective approach when considering new issues. However, positions in the BBB
category rose slightly to 34% of net assets. Absent a recession or a large
market sell-off, we expect yield differences between securities of different
credit ratings to remain tight. Another factor contributing to the narrow
yield spreads was the increasing market share of bond insurance, shrinking
the supply of uninsured lower-rated bonds. As a result, we are being
selective in our purchases of lower-quality bonds and do not expect a
material change in your fund's average credit quality, which was BBB+ at the
end of February.

Chart 7- Quality Diversification pie

We managed duration and the weighted average maturity within a narrow range,
with duration remaining between 7.0 and 7.4 years. Your fund was slightly
defensive versus its peer group early in the year, which was a plus in a down
market. We lengthened maturities modestly during much of the second half,
maintaining a weighted average maturity of 19 years and a cash level of about
3%. At the end of February, your fund could be characterized as being fairly
neutral versus its peer group.

OUTLOOK

The economy is in its sixth year of expansion, and while it has exhibited few
signs of inflationary pressure, the Federal Reserve remains on alert. Fed
chairman Alan Greenspan stated in recent testimony to the Senate Banking
Committee that the Fed cannot rule out a preemptive tightening in monetary
policy before signs of actual higher inflation become evident.

We expect economic growth and inflation to remain moderate throughout the
rest of 1997, with no evidence of recession visible to date. Consumer and
business sentiment remain high, inventories are not excessive, and
availability of credit is ample. The Federal Reserve, as indicated, could
push the fed funds rate higher to keep prices in check, but we believe any
increase will be small since short-term rates are well above the recent trend
rate of inflation. This was not the case in 1994, when the Fed was forced to
move aggressively.

The supply of municipal bonds should increase over the near term, possibly
exerting some downward pressure on bond prices if demand does not increase
commensurately. Given our expectation that interest rates will move in a
relatively narrow channel, we would regard higher rates as an opportunity to
provide additional yield in the funds. Overall, however, we do not expect to
see a significant move in bond prices in the months ahead. As in the past
year, the returns from municipal securities should come primarily from
income.

Respectfully submitted,

Mary J. Miller
Director
Municipal Bond Department

March 21, 1997

T. Rowe Price Tax-Free Funds

Portfolio Highlights

KEY STATISTICS

                                  8/31/96    2/28/97
Tax-Exempt Money Fund
_____________________________________________________

Price Per Share                 $   1.00     $  1.00

Dividends Per Share!

   For 6 months                    0.015       0.015

   For 12 months                   0.031       0.030

Dividend Yield 
   (7-Day Compound) *               3.06%       3.02%

Weighted Average 
   Maturity (days)                    66          58

Weighted Average Quality **   First Tier  First Tier


Tax-Free Short-Intermediate Fund
_____________________________________________________

Price Per Share                 $   5.30     $  5.35

Dividends Per Share!

   For 6 months                     0.12        0.11

   For 12 months                    0.23        0.23

Dividend Yield *

   For 6 months                     4.32%       4.37%

   For 12 months                    4.40        4.39

Weighted Average Maturity 
   (years)                           3.2         3.6

Weighted Average Effective 
   Duration (years)                  2.6         2.8

Weighted Average Quality ***          AA          AA

(continued on next page)

T. Rowe Price Tax-Free Funds

Portfolio Highlights

Key statistics 
                                  8/31/96    2/28/97

Tax-Free Insured Intermediate Bond Fund
_____________________________________________________

Price Per Share                 $  10.62$     10.80

Dividends Per Share!

   For 6 months                    0.24         0.24

   For 12 months                   0.48         0.48

Dividend Yield *

   For 6 months                     4.44%       4.58%

   For 12 months                    4.51        4.56

Weighted Average 
   Maturity (years)                  7.7         7.4

Weighted Average Effective 
   Duration (years)                  5.6         5.3

Weighted Average Quality ***          AA          AA

Tax-Free Income Fund

Price Per Share                 $   9.40     $  9.59

Dividends Per Share!

   For 6 months                     0.26        0.26

   For 12 months                    0.52        0.52

Dividend Yield *

   For 6 months                     5.44%       5.48%

   For 12 months                    5.52        5.54

Weighted Average 
   Maturity (years)                 17.0        17.0

Weighted Average Effective 
   Duration (years)                  7.5         7.7

Weighted Average Quality ***         AA-         AA-

Key statistics 

                                8/31/962/28/97
Tax-Free High Yield Fund
_____________________________________________________

Price Per Share                 $  11.84     $ 12.12

Dividends Per Share!

   For 6 months                     0.35        0.35

   For 12 months                    0.71        0.70

Dividend Yield *

   For 6 months                     5.92%       5.94%

   For 12 months                    6.05        6.02

Weighted Average 
   Maturity (years)                 19.4        19.1

Weighted Average Effective
 Duration (years)                    7.1         7.2

Weighted Average Quality ***        BBB+        BBB+

!    Taxability of dividends: 100% of the dividends paid for the 12 months
     ended 2/28/97 were exempt from federal income tax.

*    Dividends earned and reinvested for the periods indicated are
     annualized and divided by the average daily net asset values per share
     for the same period.

**   All securities purchased in the money fund are rated in the two highest
     categories (tiers) as established by national rating agencies or, if
     unrated, are deemed of comparable quality by T. Rowe Price.

***  Based on T. Rowe Price research.

T. Rowe Price Tax-Free Funds

Performance Comparison

These charts show the value of a hypothetical $10,000 investment in each fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.

Chart 8 - Tax Exempt Money Fund line chart

Chart 9 - Tax-Free Short-Intermediate Fund line chart

Chart 10 - Tax-Free Insured Intermediate Bond Fund line chart

Chart 11 - Tax-Free Income Fund line chart 

Chart 12 - Tax-Free High Yield Fund line chart

Average Annual Compound Total Return

This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.

                                     
Periods Ended                              Since   Incep-
2/28/97                  1      5     10  Incep-     tion
                      Year  Years  Years    tion     Date
    
_________________________________________________________

Tax-Exempt Money     3.05%   2.70%  3.77%     -    4/8/81

Tax-Free Short-
  Intermediate        4.02   4.94   5.13      -  12/23/83

Tax-Free Insured 
  Intermediate Bond   4.19      -      -   6.76% 11/30/92

Tax-Free Income       4.81   7.38   6.40      -  10/26/76

Tax-Free High Yield   6.22   7.82   7.60      -    3/1/85

Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.

For yield, price, last transaction, 
current balance, or to conduct 
transactions, 24 hours, 7 days 
a week, call Tele*Access(registered trademark): 
1-800-638-2587 toll free

For assistance 
with your existing 
fund account, call: 
Shareholder Service Center
1-800-225-5132 toll free 
625-6500 Baltimore area

To open a Discount Brokerage 
account or obtain information,
call:   1-800-638-5660 toll free

Internet address:
http://www.troweprice.com

T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland  21202

This report is authorized for 
distribution only to shareholders 
and to others who have received 
a copy of the prospectus of the 
T. Rowe Price Tax-Free Funds.

Investor Centers:
101 East Lombard St.
Baltimore, MD 21202

T. Rowe Price 
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117

Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006

ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071

4200 West Cypress St.
10th Floor
Tampa, FL 33607

T. Rowe Price Investment Services, Inc., Distributor.

RPRTTFF  2/28/97


Chart 1- yield line chart showing 30-year AAA GO, 5-year AAA GO, and 1-year
MIG1 note from 2/29/96 through 2/28/97

Chart 7 - quality diversification pie chart showing AAA 4%, AA 26%, A 13%,
BBB 34%, and BB and Below 23% on 2/28/97

Chart 8 - Tax Exempt Money Fund line chart showing the cumulative growth of
$10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.

Chart 9 - Tax-Free Short-Intermediate Fund line chart showing the cumulative
growth of $10,000 invested in the TEM Fund over the past 10 years (or from
inception for funds lacking 10-year histories) compared with $10,000 invested
in a broad-based index or average over the same period.

Chart 10 - Tax-Free Insured Intermediate Bond Fund line chart showing the
cumulative growth of $10,000 invested in the TEM Fund over the past 10 years
(or from inception for funds lacking 10-year histories) compared with $10,000
invested in a broad-based index or average over the same period.

Chart 11 - Tax-Free Income Fund line chart showing the cumulative growth of
$10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.

Chart 12 - Tax-Free High Yield Fund line chart showing the cumulative growth
of $10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.