|**ITEM 1. SCHEDULE OF INVESTMENTS**                                    |        |             
|---------------------------------------------------------------------- | ------ | ------------
|                                                                       |        |             
|T. ROWE PRICE
      TAX-FREE INCOME FUND                               |        |             
|Unaudited                                                              |        | May 31, 2006
|Portfolio of Investments
                                             | $ Par  | Value       
|(Amounts in $000s)                                                     |        |             
|MUNICIPAL SECURITIES
      99.2%                                       |        |             
|Alabama
    1.0%                                                       |        |             
|Baldwin County Eastern Shore Hosp. Auth., 5.75%,
      4/1/27          |        |             
|(Prerefunded 4/1/08) (1)                                               | 880    | 923         
|Birmingham Water & Sewer, VRDN (Currently 3.50%)
      (2)             | 3,800  | 3,800       
|Camden Ind. Dev. Board, IDRB,
    Weyerhaeuser                         |        |             
|6.125%, 12/1/24                                                        | 2,500  | 2,711       
|Courtland Ind. Dev. Board, PCR, Int'l. Paper, 5.00%,
      6/1/25      | 2,000  | 1,995       
|Health Care Auth. for Baptist Health, 5.00%,
      11/15/14            | 3,400  | 3,491       
|Health Care Auth. for Baptist Health, 5.00%,
      11/15/15            | 1,500  | 1,536       
|Phoenix, IDB, PCR, MeadWestvaco, 6.10%,
      5/15/30                  | 3,750  | 3,959       
|                                                                       |        | 18,415      
|Alaska
    0.3%                                                        |        |             
|Alaska HFC, Single Family, 5.30%,
    12/1/17                          | 2,105  | 2,133       
|Valdez Marine, BP Pipelines, VRDN (Currently
      3.53%)              | 2,900  | 2,900       
|                                                                       |        | 5,033       
|Arizona
    0.8%                                                       |        |             
|Arizona School Fac. Board, 5.50%,
    7/1/18                           |        |             
|(Prerefunded 7/1/11) (1)                                               | 5,000  | 5,401       
|Scottsdale IDA, Scottsdale Healthcare, 5.80%,
      12/1/31            | 2,000  | 2,192       
|Univ. Medical Center, 5.00%, 7/1/35                                    | 6,000  | 5,932       
|                                                                       |        | 13,525      
|Arkansas
    0.4%                                                      |        |             
|Little Rock Health Fac. Board, Baptist Health,
      6.85%, 11/1/08    | 2,495  | 2,651       
|North Little Rock, 6.50%, 7/1/15 (2)                                   | 4,000  | 4,587       
|                                                                       |        | 7,238       
|California
      11.8%                                                 |        |             
|Anaheim PFA, California Electric, 5.00%, 10/1/34
      (2)             | 3,340  | 3,415       
|California, 5.65%, 6/1/30 (Prerefunded
      6/1/10)  (1)              | 520    | 557         
|California, 5.65%, 6/1/30 (Prerefunded
      6/1/10)  (1)              | 1,845  | 1,976       
|California, GO, 5.00%, 2/1/33                                          | 5,000  | 5,079       
|California, GO, 5.125%, 6/1/31                                         | 10,540 | 10,761      
|California, GO, 5.25%, 4/1/29                                          | 5,000  | 5,228       
|California, GO, 5.25%, 4/1/34                                          | 5,500  | 5,728       
|California, GO, 5.50%, 11/1/33                                         | 8,000  | 8,638       
|California, GO, 5.65%, 6/1/30                                          | 135    | 143         
|California, Tobacco Securitization Agency, 0%,
      6/1/21 (3)        | 5,000  | 3,999       
|California Dept. of Water Resources, Power
      Supply                |        |             
|5.375%, 5/1/21 (Prerefunded 5/1/12)
    (1)                            | 2,000  | 2,188       
|California Dept. of Water Resources, Power
      Supply                |        |             
|5.75%, 5/1/17 (Prerefunded 5/1/12)
    (1)                             | 3,000  | 3,341       
|California HFA, Cedars-Sinai Medical, 5.00%,
      11/15/34            | 5,000  | 5,038       
|California Public Works Board, Dept. of
      Corrections              |        |             
|5.25%, 6/1/28                                                          | 14,810 | 15,367      
|California Public Works Board, Mental Health, 5.50%,
      6/1/23      | 3,000  | 3,235       
|California Public Works Board, State Dept. of Health
      Services    |        |             
|5.00%, 11/1/23                                                         | 12,055 | 12,392      
|California Statewide CDA, Community Hosp. of
      Monterey            |        |             
|Peninsula, 5.25%, 6/1/23 (4)                                           | 2,000  | 2,105       
|California Statewide CDA, Huntington Memorial
      Hosp.              |        |             
|5.00%, 7/1/27                                                          | 6,500  | 6,587       
|California Statewide CDA, Southern California
      Edison             |        |             
|4.25%, 11/1/33 (Tender 4/1/16) (5)                                     | 3,475  | 3,453       
|California Statewide CDA, Sutter Health, 5.625%,
      8/15/42         | 3,850  | 4,010       
|Capistrano Unified School Dist. No. 90-2, 5.875%,
      9/1/23         | 1,415  | 1,495       
|Folsom, Community Fac. Dist. #10, 5.875%,
      9/1/28                 | 3,000  | 3,108       
|Foothill / Eastern Transportation Corridor
      Agency                |        |             
|Zero Coupon, 1/1/15 (6)                                                | 5,000  | 3,459       
|Foothill / Eastern Transportation Corridor
      Agency                |        |             
|Zero Coupon, 1/1/17 (6)                                                | 18,000 | 11,239      
|Golden State Tobacco Securitization Corp., Tobacco
      Settlement    |        |             
|5.50%, 6/1/33 (Prerefunded 6/1/13)
    (1)                             | 7,500  | 8,240       
|Golden State Tobacco Securitization Corp., Tobacco
      Settlement    |        |             
|5.625%, 6/1/38 (Prerefunded 6/1/13)
    (1)                            | 8,500  | 9,403       
|Los Angeles Dept. of Water & Power, 5.00%,
      7/1/23 (2)            | 5,000  | 5,187       
|Los Angeles Harbor, 7.60%, 10/1/18
    (6)                             | 3,165  | 3,846       
|Orange County, COP, 5.875%, 7/1/19                                     |        |             
|(Prerefunded 7/1/06) (1)(2)                                            | 6,000  | 6,132       
|Palm Springs Fin. Auth., Convention Center, 5.50%,
      11/1/29 (2)   | 3,100  | 3,387       
|Sacramento Municipal Utility Dist. Fin. Auth.,
      4.75%, 7/1/26 (2) | 6,750  | 6,798       
|San Diego Unified School Dist., 5.50%, 7/1/25
      (2)                | 4,745  | 5,394       
|San Francisco Public Utility Commission, 5.00%,
      11/1/27 (4)      | 8,000  | 8,202       
|San Jose Airport, 5.00%, 3/1/28 (2)                                    | 3,500  | 3,592       
|Southern California Public Power Auth., 6.75%,
      7/1/11            | 4,050  | 4,536       
|Union Elementary School Dist., Zero Coupon, GO,
      9/1/12 (5)       | 2,945  | 2,286       
|Union Elementary School Dist., Zero Coupon, GO,
      9/1/13 (5)       | 3,520  | 2,604       
|Univ. of California Regents, 5.00%, 5/15/24
      (4)                  | 5,000  | 5,196       
|Univ. of California Regents, 5.125%, 5/15/15
      (7)                 | 1,900  | 2,031       
|Univ. of California Regents, 5.125%, 5/15/17
      (7)                 | 10,000 | 10,643      
|West Hollywood CDA, East Side Redev., 5.625%,
      9/1/28             | 2,015  | 2,075       
|                                                                       |        | 212,093     
|Colorado
    1.3%                                                      |        |             
|Colorado HFA, Adventist Health, 6.50%,
      11/15/31                  |        |             
|(Prerefunded 11/15/11) (1)                                             | 2,500  | 2,839       
|Colorado HFA, Covenant Retirement
    Communities                      |        |             
|6.125%, 12/1/33                                                        | 2,000  | 2,141       
|Colorado HFA, Evangelical Lutheran, 5.25%,
      6/1/23                | 1,200  | 1,232       
|Denver Convention Center Hotel Auth., 5.25%, 12/1/20
      (8)         | 8,670  | 9,228       
|Denver Convention Center Hotel Auth., 5.25%, 12/1/22
      (8)         | 7,020  | 7,466       
|                                                                       |        | 22,906      
|Connecticut
      0.9%                                                 |        |             
|Connecticut Special Tax Obligation, 7.125%,
      6/1/10               | 7,350  | 8,144       
|Mohegan Tribe Indians, 6.00%, 1/1/16                                   | 2,250  | 2,386       
|Mohegan Tribe Indians, 6.25%, 1/1/31                                   | 4,750  | 5,058       
|                                                                       |        | 15,588      
|District of Columbia
      3.8%                                        |        |             
|District of Columbia, 5.25%, 6/1/27 (Prerefunded
      6/1/08)  (1)(2) | 1,330  | 1,383       
|District of Columbia, 5.25%, 6/1/27 (Prerefunded
      6/1/08)  (1)(2) | 2,060  | 2,142       
|District of Columbia, 6.00%, 6/1/14
    (2)(6)                         | 2,305  | 2,616       
|District of Columbia, GO, 5.00%, 6/1/17
    (7)                        | 12,125 | 12,755      
|District of Columbia, GO, 5.00%, 6/1/18
    (7)                        | 11,230 | 11,777      
|District of Columbia, GO, 5.125%, 6/1/17
    (7)                       | 12,720 | 13,427      
|District of Columbia, GO, 5.25%, 6/1/27
    (2)                        | 6,585  | 6,790       
|District of Columbia, GO, 6.00%, 6/1/14
    (2)                        | 4,400  | 4,960       
|District of Columbia, GO, 6.00%, 6/1/15
    (2)                        | 1,550  | 1,761       
|District of Columbia, GO, 6.00%, 6/1/17
    (2)                        | 4,250  | 4,880       
|District of Columbia, Tobacco Settlement, 5.25%,
      5/15/09         | 5,000  | 5,088       
|                                                                       |        | 67,579      
|Florida
    2.9%                                                       |        |             
|Coral Gables HFA, Baptist Health South, 5.25%,
      8/15/24 (4)       | 5,000  | 5,297       
|Dade County, Zero Coupon, 2/1/09 (2)                                   | 12,185 | 10,878      
|Dade County IDA, Florida Power & Light, VRDN
      (Currently 3.55%)   | 3,900  | 3,900       
|Highlands County HFA, Adventist Health, 5.00%,
      11/15/30          | 5,500  | 5,512       
|Highlands County HFA, Adventist Health, 5.00%,
      11/15/31          | 2,000  | 2,001       
|Highlands County HFA, Adventist Health, 5.875%,
      11/15/29         | 7,000  | 7,462       
|Highlands County HFA, Adventist Health, 6.00%,
      11/15/31          |        |             
|(Prerefunded 11/15/11) (1)                                             | 2,750  | 3,056       
|Jacksonville HFA, Baptist Health, VRDN (Currently
      3.59%)         | 900    | 900         
|Orange County HFA, Nemours Foundation, 5.00%,
      1/1/35             | 6,345  | 6,510       
|Orange County HFA, Westminster Community
    Care                      |        |             
|6.75%, 4/1/34                                                          | 2,500  | 2,578       
|Port Saint Lucie Utility, Zero Coupon,
    9/1/16                      |        |             
|(Prerefunded 9/1/06) (1)(5)                                            | 5,000  | 2,786       
|Port Saint Lucie Utility, Zero Coupon,
    9/1/26                      |        |             
|(Prerefunded 9/1/06) (1)(5)                                            | 5,000  | 1,462       
|                                                                       |        | 52,342      
|Georgia
    4.5%                                                       |        |             
|Atlanta Airport, 5.25%, 1/1/33 (4)                                     | 5,000  | 5,245       
|Chatham County Hosp. Auth., Memorial Univ. Medical
      Center        |        |             
|5.75%, 1/1/29                                                          | 3,500  | 3,709       
|Chatham County Hosp. Auth., Memorial Univ. Medical
      Center        |        |             
|6.125%, 1/1/24                                                         | 4,000  | 4,311       
|Coweta County Residential Care Fac. for the Elderly,
      Wesley      |        |             
|Woods of Newnan-Peachtree City, 8.20%,
      10/1/16                   |        |             
|(Prerefunded 10/1/06) (1)                                              | 1,350  | 1,396       
|Coweta County Residential Care Fac. for the Elderly,
      Wesley      |        |             
|Woods of Newnan-Peachtree City, 8.25%,
      10/1/26                   |        |             
|(Prerefunded 10/1/06) (1)                                              | 1,800  | 1,861       
|Forsyth County School Dist., GO, 5.75%,
      2/1/18                   |        |             
|(Prerefunded 2/1/10) (1)                                               | 2,800  | 3,047       
|Fulton-DeKalb Hosp. Auth., Grady Memorial
      Hosp.                  |        |             
|6.80%, 1/1/07 (6)(7)                                                   | 5,530  | 5,633       
|Fulton-DeKalb Hosp. Auth., Grady Memorial
      Hosp.                  |        |             
|6.80%, 1/1/08 (6)(7)                                                   | 5,905  | 6,193       
|Fulton-DeKalb Hosp. Auth., Grady Memorial
      Hosp.                  |        |             
|6.85%, 1/1/09 (6)(7)                                                   | 6,310  | 6,804       
|Fulton-DeKalb Hosp. Auth., Grady Memorial
      Hosp.                  |        |             
|6.85%, 1/1/10 (6)(7)                                                   | 6,745  | 7,455       
|Georgia Private Colleges & Univ. Auth., Emory
      Univ.              |        |             
|5.50%, 11/1/24 (Prerefunded 11/1/10)
    (1)                           | 6,225  | 6,732       
|Gwinnett County School Dist., GO, 6.40%,
      2/1/11                  | 1,905  | 2,121       
|Municipal Electric Auth. of Georgia, 5.50%,
      1/1/20               |        |             
|(Prerefunded 1/1/13) (1)                                               | 85     | 93          
|Municipal Electric Auth. of Georgia, 5.50%,
      1/1/20               | 2,915  | 3,140       
|Municipal Electric Auth. of Georgia, 5.70%, 1/1/19
      (5)           | 5,100  | 5,686       
|Municipal Electric Auth. of Georgia, 6.40%, 1/1/07
      (6)(7)        | 845    | 859         
|Municipal Electric Auth. of Georgia, 6.40%, 1/1/07
      (6)(7)        | 815    | 828         
|Municipal Electric Auth. of Georgia, 6.40%, 1/1/07
      (7)           | 5,840  | 5,932       
|Municipal Electric Auth. of Georgia, 7.25%, 1/1/24
      (7)           | 6,500  | 8,665       
|                                                                       |        | 79,710      
|Hawaii
    0.5%                                                        |        |             
|Hawaii Airports System, 5.75%, 7/1/21
    (5)                          | 4,000  | 4,288       
|Hawaii Dept. of Budget & Fin., B&F Kapiolani
      Health              |        |             
|6.25%, 7/1/21 (Prerefunded 7/1/06)
    (1)                             | 4,000  | 4,088       
|                                                                       |        | 8,376       
|Idaho
    0.2%                                                         |        |             
|Nez Perce County, IDRB, PCR, Potlatch Corp., 7.00%,
      12/1/14      | 2,600  | 2,937       
|                                                                       |        | 2,937       
|Illinois
    5.2%                                                      |        |             
|Chicago, 6.75%, 1/1/35 (Prerefunded 7/1/10)
      (1)(5)               | 5,000  | 5,608       
|Chicago, GO, 5.50%, 1/1/14 (4)                                         | 5,000  | 5,466       
|Chicago, GO, 5.50%, 1/1/18 (7)                                         | 3,880  | 4,290       
|Illinois, Sales Tax, 5.50%, 6/15/16                                    | 2,000  | 2,148       
|Illinois, Sales Tax, 6.125%, 6/15/16                                   | 2,000  | 2,173       
|Illinois Dev. Fin Auth, PCR, BP Amoco, VRDN
      (Currently 3.53%)    | 1,000  | 1,000       
|Illinois EFA, Northwestern Univ., 5.25%,
      11/1/32                 |        |             
|(Tender 11/1/14)                                                       | 4,000  | 4,279       
|Illinois Fin. Auth., Northwestern Memorial
      Hosp.                 |        |             
|5.50%, 8/15/43                                                         | 12,750 | 13,426      
|Illinois HFA, Glen Oaks Medical Center, 7.00%,
      11/15/19 (6)      | 3,300  | 3,397       
|Illinois HFA, Institute of Technology, 5.00%,
      4/1/22             | 5,765  | 5,880       
|Illinois HFA, Institute of Technology, 5.00%,
      4/1/23             | 3,250  | 3,307       
|Illinois HFA, Institute of Technology, 5.00%,
      4/1/26             | 2,000  | 2,029       
|Illinois HFA, Institute of Technology, 5.00%,
      4/1/31             | 5,500  | 5,534       
|Illinois HFA, Institute of Technology, 5.00%,
      4/1/36             | 3,000  | 3,011       
|Illinois Unemployment Insurance Fund, 5.00%,
      12/15/06 (4)        | 10,000 | 10,131      
|Metropolitan Pier & Expo Auth.,
    McCormick                          |        |             
|Zero Coupon, 6/15/18 (5)                                               | 14,160 | 8,089       
|Regional Transportation Auth., 6.70%, 11/1/21
      (5)                | 5,000  | 6,067       
|Regional Transportation Auth., 7.75%, 6/1/19
      (5)                 | 5,350  | 6,867       
|                                                                       |        | 92,702      
|Indiana
    0.8%                                                       |        |             
|Goshen, Greencroft Obligated Group, 5.75%,
      8/15/19               | 3,000  | 3,039       
|Indiana HFFA, Clarion Health Partners, 5.50%,
      2/15/16            |        |             
|(Prerefunded 2/15/07) (1)                                              | 6,705  | 6,921       
|Indiana Transportation Fin. Auth., Highway
      Revenue               |        |             
|5.375%, 12/1/25 (Prerefunded 12/1/10)
    (1)                          | 640    | 682         
|Indiana Transportation Fin. Auth., Highway
      Revenue               |        |             
|5.375%, 12/1/25                                                        | 3,360  | 3,533       
|                                                                       |        | 14,175      
|Iowa
    0.6%                                                          |        |             
|Iowa, TRAN, 4.50%, 6/30/06                                             | 5,000  | 5,004       
|Iowa Fin. Auth., Single Family, 5.70%,
    1/1/27                      | 2,150  | 2,194       
|Scott County, Ridgecrest Village, 7.25%,
      11/15/26                | 4,000  | 4,303       
|                                                                       |        | 11,501      
|Kansas
    1.3%                                                        |        |             
|Burlington, PCR, Kansas Gas & Electric, 5.30%,
      6/1/31 (2)        | 21,525 | 22,651      
|                                                                       |        | 22,651      
|Louisiana
    0.8%                                                     |        |             
|Calcasieu Parish, IDB, PCR, Entergy, 5.45%,
      7/1/10               | 1,750  | 1,763       
|Louisiana Public Fac. Auth., Baton Rouge General
      Medical         |        |             
|Center, 5.25%, 7/1/33 (2)                                              | 10,000 | 10,421      
|Sabine River Auth., PCR, Intl. Paper, 6.20%,
      2/1/25              | 2,500  | 2,658       
|                                                                       |        | 14,842      
|Maryland
    1.7%                                                      |        |             
|Baltimore City, Convention Center Hotel, 5.875%,
      9/1/39          | 1,500  | 1,564       
|Maryland Economic Dev. Corp., U.S.
      Pharmacopeial                 |        |             
|VRDN (Currently 3.58%) (7)                                             | 1,900  | 1,900       
|Maryland HHEFA, Beth Tfiloh Dahan Community
      School               |        |             
|VRDN (Currently 3.22%)                                                 | 6,710  | 6,710       
|Maryland HHEFA, Johns Hopkins Hosp., Zero Coupon,
      7/1/19         | 7,675  | 3,986       
|Maryland HHEFA, Mercy Ridge Retirement
      Community                 |        |             
|6.00%, 4/1/35                                                          | 2,535  | 2,660       
|Maryland HHEFA, Sheppard & Enoch Pratt
      Foundation                |        |             
|Muni Auction Rate (Currently 3.40%)
    (9)                            | 1,500  | 1,500       
|Maryland HHEFA, Stella Maris Operating
    Corp.                       |        |             
|VRDN (Currently 3.24%)                                                 | 5,145  | 5,145       
|Maryland HHEFA, Univ. of Maryland Medical
      System                 |        |             
|7.00%, 7/1/22 (5)                                                      | 1,500  | 1,914       
|Montgomery County Economic Dev., Institute for
      Genomic           |        |             
|Research, VRDN (Currently 3.45%)                                       | 980    | 980         
|Prince George's County Hosp., Dimensions
      Health                  |        |             
|5.30%, 7/1/24                                                          | 5,685  | 4,712       
|                                                                       |        | 31,071      
|Massachusetts
      4.9%                                               |        |             
|Massachusetts, 5.25%, 8/1/16 (Prerefunded
      8/1/13)  (1)           | 10,000 | 10,789      
|Massachusetts, 5.75%, 1/1/32 (Prerefunded
      1/1/14)  (1)(5)        | 6,000  | 6,668       
|Massachusetts, GO, 5.00%, 9/1/21                                       | 3,380  | 3,533       
|Massachusetts, GO, 5.00%, 9/1/24                                       | 15,980 | 16,627      
|Massachusetts, GO, VRDN (Currently
    3.52%)                          | 1,400  | 1,400       
|Massachusetts Bay Transportation Auth., 5.25%,
      7/1/30            |        |             
|(Prerefunded 7/1/14) (1)                                               | 2,000  | 2,170       
|Massachusetts Bay Transportation Auth., GO, 7.00%,
      3/1/14        | 3,150  | 3,684       
|Massachusetts Bay Transportation Auth., GO, 7.00%,
      3/1/21        | 6,200  | 7,547       
|Massachusetts HEFA, Harvard Univ., 6.00%,
      7/1/35                 |        |             
|(Prerefunded 7/1/10) (1)                                               | 3,500  | 3,830       
|Massachusetts HEFA, Harvard Univ., 6.25%,
      4/1/20                 | 5,000  | 6,043       
|Massachusetts HEFA, Partners Healthcare, 5.75%,
      7/1/32           | 4,400  | 4,741       
|Massachusetts Port Auth., 5.75%,
    7/1/29                            |        |             
|(Prerefunded 1/1/10) (1)                                               | 5,000  | 5,386       
|Massachusetts Water Pollution Abatement
    Trust                      |        |             
|5.25%, 8/1/20 (Prerefunded 8/1/10)
    (1)                             | 3,695  | 3,943       
|Massachusetts Water Pollution Abatement
    Trust                      |        |             
|5.25%, 8/1/20                                                          | 55     | 58          
|Massachusetts Water Pollution Abatement
    Trust                      |        |             
|5.75%, 8/1/29 (Prerefunded 8/1/09)
    (1)                             | 990    | 1,060       
|Massachusetts Water Pollution Abatement Trust,
      Water             |        |             
|Resources Auth., 5.75%, 8/1/29                                         | 4,010  | 4,263       
|Massachusetts Water Pollution Abatement Trust,
      Water             |        |             
|Resources Auth., 6.00%, 8/1/19                                         | 5,000  | 5,870       
|                                                                       |        | 87,612      
|Michigan
    2.2%                                                      |        |             
|Cornell Township Economic Dev.,
    MeadWestvaco                       |        |             
|5.875%, 5/1/18 (Prerefunded 5/1/12)
    (1)                            | 2,000  | 2,212       
|Dickinson County, PCR, Int'l. Paper, 4.80%,
      11/1/18              | 2,000  | 1,962       
|Michigan, GO, TAN, 4.50%, 9/29/06                                      | 10,000 | 10,028      
|Michigan Building Auth., 5.50%,
    10/15/19                           | 5,000  | 5,357       
|Michigan Hosp. Fin. Auth., Ascension Health, 5.25%,
      11/15/26     | 3,570  | 3,695       
|Michigan Hosp. Fin. Auth., Trinity Health, 5.00%,
      8/15/25        | 10,000 | 10,259      
|Michigan Hosp. Fin. Auth., Trinity Health, 6.00%,
      12/1/20        | 1,500  | 1,619       
|Michigan Strategic Fund, IDRB, Detroit Edison,
      5.45%, 9/1/29     | 5,000  | 5,125       
|                                                                       |        | 40,257      
|Minnesota
    0.6%                                                     |        |             
|Minneapolis & St. Paul Metropolitan Airport
      Commission           |        |             
|5.25%, 1/1/32 (5)                                                      | 10,000 | 10,373      
|                                                                       |        | 10,373      
|Mississippi
      0.4%                                                 |        |             
|Mississippi Business Fin., PCR, System Energy
      Resources          |        |             
|5.90%, 5/1/22                                                          | 7,000  | 7,048       
|                                                                       |        | 7,048       
|Missouri
    0.9%                                                      |        |             
|Good Shepherd Nursing Home Dist., 5.90%,
      8/15/23                 | 2,000  | 1,960       
|Missouri Joint Municipal Electric Utility
      Commission, Plum Point |        |             
|5.00%, 1/1/23 (2)                                                      | 8,975  | 9,392       
|Missouri Joint Municipal Electric Utility
      Commission, Plum Point |        |             
|5.00%, 1/1/27 (2)                                                      | 4,000  | 4,154       
|                                                                       |        | 15,506      
|Montana
    0.4%                                                       |        |             
|Forsyth, IDRB, PCR, Northwestern, 4.65%, 8/1/23
      (7)              | 8,000  | 8,005       
|                                                                       |        | 8,005       
|Nebraska
    0.3%                                                      |        |             
|American Public Energy Agency, VRDN (Currently
      3.50%)            | 2,426  | 2,426       
|Omaha Public Power Dist., 6.20%, 2/1/17
    (6)                        | 3,000  | 3,424       
|                                                                       |        | 5,850       
|Nevada
    2.8%                                                        |        |             
|Clark County, Fuel Tax, 5.125%, 7/1/16
    (7)                         | 10,870 | 11,579      
|Clark County Airport, Las Vegas McCarran Int'l.
      Airport          |        |             
|4.75%, 7/1/22 (2)                                                      | 2,970  | 2,997       
|Clark County School Dist., GO, 7.00%, 6/1/11
      (2)                 | 3,500  | 3,991       
|Clark County, IDRB, PCR, Nevada Power, 5.30%,
      10/1/11            | 2,000  | 1,997       
|Clark County, IDRB, PCR, Southwest Gas, 5.45%,
      3/1/38            |        |             
|(Tender 3/1/13)                                                        | 5,000  | 5,253       
|Las Vegas New Convention & Visitors Auth.,
      5.00%, 7/1/19 (7)     | 7,595  | 7,962       
|Nevada, GO, 7.25%, 11/1/10 (6)                                         | 3,050  | 3,054       
|Nevada System of Higher Ed., 5.00%, 7/1/27
      (7)                   | 6,050  | 6,264       
|Nevada System of Higher Ed., 5.00%, 7/1/30
      (7)                   | 5,000  | 5,150       
|Truckee Meadows Water Auth., 5.50%, 7/1/19
      (4)                   | 2,500  | 2,695       
|                                                                       |        | 50,942      
|New Hampshire
      1.9%                                               |        |             
|New Hampshire Business Fin. Auth., PCR, Public
      Service           |        |             
|5.45%, 5/1/21 (2)                                                      | 14,500 | 15,506      
|New Hampshire HEFA, Covenant Health
    Systems                        |        |             
|6.00%, 7/1/22                                                          | 3,400  | 3,643       
|New Hampshire HEFA, Dartmouth-Hitchcock Obligation
      Group         |        |             
|5.50%, 8/1/27 (4)                                                      | 7,930  | 8,503       
|New Hampshire HEFA, Elliot Hosp., 5.60%,
      10/1/22                 | 1,000  | 1,052       
|New Hampshire HEFA, Wentworth-Douglas
    Hosp.                        |        |             
|5.375%, 1/1/15 (2)                                                     | 5,600  | 5,966       
|                                                                       |        | 34,670      
|New Jersey
    2.1%                                                    |        |             
|Middlesex County, PCR, Amerada Hess, 6.05%,
      9/15/34              | 2,000  | 2,135       
|New Jersey Economic Dev. Auth., Cigarette
    Tax                      |        |             
|5.625%, 6/15/19                                                        | 2,500  | 2,625       
|New Jersey Economic Dev. Auth., Harrogate, 5.875%,
      12/1/26       | 3,500  | 3,543       
|New Jersey Economic Dev. Auth., Motor Vehicle
      Surcharge          |        |             
|5.25%, 7/1/31 (2)                                                      | 5,000  | 5,286       
|New Jersey Economic Dev. Auth., School Fac.
      Construction         |        |             
|5.25%, 9/1/18                                                          | 5,000  | 5,351       
|New Jersey HFFA, Pascack Valley Hosp. Assoc., 6.50%,
      7/1/23      | 3,000  | 3,091       
|New Jersey HFFA, Pascack Valley Hosp. Assoc.,
      6.625%, 7/1/36     | 3,000  | 3,088       
|New Jersey Transportation Trust Fund Auth., 5.50%,
      12/15/21      | 7,165  | 7,934       
|New Jersey Transportation Trust Fund Auth.,
      Capital              |        |             
|Appreciation, Zero Coupon, 12/15/31
    (5)                            | 13,000 | 3,688       
|                                                                       |        | 36,741      
|New Mexico
    0.9%                                                    |        |             
|Jicarilla Apache Nation, 5.50%,
    9/1/23                             | 3,890  | 4,069       
|Sandoval County, IDRB, Intel Corp., 5.00%,
      6/1/20                | 3,725  | 3,864       
|Univ. of New Mexico Regents, Univ. of New Mexico
      Hosp.           |        |             
|5.00%, 7/1/32 (4)                                                      | 7,840  | 7,991       
|                                                                       |        | 15,924      
|New York
    16.9%                                                     |        |             
|Dormitory Auth. of the State of New York, City
      Univ.             |        |             
|5.75%, 7/1/13                                                          | 10,000 | 10,850      
|Dormitory Auth. of the State of New York, City
      Univ.             |        |             
|5.75%, 7/1/18 (7)                                                      | 5,000  | 5,599       
|Dormitory Auth. of the State of New York, City
      Univ.             |        |             
|6.00%, 7/1/14                                                          | 10,000 | 10,974      
|Dormitory Auth. of the State of New York, Columbia
      Univ.         |        |             
|5.00%, 7/1/21                                                          | 10,045 | 10,649      
|Dormitory Auth. of the State of New York, Mount
      Sinai NYU        |        |             
|Health, 5.50%, 7/1/26                                                  | 2,000  | 2,020       
|Dormitory Auth. of the State of New York, Personal
      Income Tax    |        |             
|5.00%, 3/15/30                                                         | 7,000  | 7,221       
|Dormitory Auth. of the State of New York, State
      Univ.            |        |             
|5.25%, 5/15/15 (7)                                                     | 3,600  | 3,867       
|Dormitory Auth. of the State of New York, State
      Univ.            |        |             
|5.25%, 5/15/19                                                         | 3,325  | 3,559       
|Dormitory Auth. of the State of New York, State
      Univ. Ed. Fac.   |        |             
|5.75%, 5/15/19 (Prerefunded 5/15/10)
    (1)(5)                        | 4,945  | 5,360       
|Metropolitan Transportation Auth., 5.00%,
      11/15/30               | 6,500  | 6,628       
|Metropolitan Transportation Auth., 5.125%,
      11/15/31              | 5,000  | 5,170       
|Metropolitan Transportation Auth., 5.25%,
      11/15/31               | 2,945  | 3,057       
|Metropolitan Transportation Auth., 5.25%,
      11/15/32               | 10,000 | 10,445      
|Metropolitan Transportation Auth., Commuter
      Fac.                 |        |             
|5.75%, 7/1/21 (Prerefunded 1/1/08)
    (1)(2)                          | 12,750 | 13,345      
|Nassau County Tobacco Settlement Corp., 0%, 6/1/26
      (3)           | 2,500  | 2,123       
|New York City, GO, 5.00%, 8/1/06                                       | 3,000  | 3,007       
|New York City, GO, 5.00%, 8/1/16                                       | 9,600  | 10,061      
|New York City, GO, 5.00%, 4/1/22                                       | 10,000 | 10,309      
|New York City, GO, 5.00%, 8/1/23                                       | 4,800  | 4,949       
|New York City, GO, 5.25%, 8/1/13                                       | 5,000  | 5,369       
|New York City, GO, 5.25%, 8/1/15                                       | 9,500  | 10,113      
|New York City, GO, 5.25%, 5/15/22                                      | 10,000 | 10,524      
|New York City, GO, 5.25%, 8/15/26                                      | 5,000  | 5,262       
|New York City, GO, 5.50%, 6/1/21                                       | 7,500  | 8,016       
|New York City, GO, 6.00%, 5/15/30 (Prerefunded
      5/15/10) (1)      | 2,855  | 3,120       
|New York City, GO, 6.00%, 5/15/30                                      | 25     | 27          
|New York City, GO, 6.25%, 8/1/09 (Prerefunded
      8/1/06) (1)        | 2,895  | 2,951       
|New York City, GO, 6.25%, 8/1/09                                       | 2,155  | 2,196       
|New York City Municipal Water Fin. Auth., 5.00%,
      6/15/32         | 10,000 | 10,169      
|New York City Municipal Water Fin. Auth., 5.50%,
      6/15/33         |        |             
|(Prerefunded 6/15/10) (1)                                              | 9,000  | 9,684       
|New York City Municipal Water Fin. Auth., 6.00%,
      6/15/33         |        |             
|(Prerefunded 6/15/10) (1)                                              | 2,220  | 2,429       
|New York City Transitional Fin. Auth., 5.25%, 2/1/29
      (3)         | 16,640 | 17,586      
|New York City Transitional Fin. Auth., 5.50%,
      11/1/26            | 5,000  | 5,376       
|New York City Transitional Fin. Auth., 5.75%,
      11/15/20           |        |             
|(Prerefunded 5/15/10) (1)                                              | 510    | 553         
|New York City Transitional Fin. Auth., 5.75%,
      11/15/20           |        |             
|(Prerefunded 5/15/10) (1)                                              | 4,990  | 5,413       
|New York City Transitional Fin. Auth., 6.00%,
      8/15/17            |        |             
|(Prerefunded 8/15/09) (1)                                              | 4,000  | 4,315       
|New York Liberty Dev. Corp., Goldman Sachs
      Group                 |        |             
|5.25%, 10/1/35                                                         | 7,000  | 7,585       
|New York State Mortgage Agency, Single Family,
      5.70%, 4/1/16     | 4,090  | 4,240       
|New York State Thruway Auth., 5.00%, 4/1/21
      (7)                  | 5,000  | 5,247       
|New York State Thruway Auth., 5.50%,
    3/15/20                       |        |             
|(Prerefunded 3/15/12) (1)                                              | 3,000  | 3,267       
|New York State Urban Dev. Corp., 5.50%,
      7/1/26                   | 10,000 | 10,213      
|Niagara Falls School Dist., COP, 5.00%, 6/15/22
      (4)              | 3,770  | 3,914       
|Tobacco Settlement Fin. Corp., 5.25%, 6/1/20
      (7)                 | 5,000  | 5,294       
|Triborough Bridge & Tunnel Auth., General
      Purpose                |        |             
|5.25%, 1/1/28 (Prerefunded 1/1/22)
    (1)                             | 10,000 | 11,046      
|Triborough Bridge & Tunnel Auth., General
      Purpose                |        |             
|5.50%, 1/1/17 (6)                                                      | 18,275 | 20,081      
|                                                                       |        | 303,183     
|North Carolina
      3.3%                                              |        |             
|Guilford County, GO, VRDN (Currently
    3.45%)                        | 20,900 | 20,900      
|North Carolina Eastern Municipal Power
    Agency                      |        |             
|5.00%, 1/1/20 (7)                                                      | 10,000 | 10,456      
|North Carolina Eastern Municipal Power Agency,
      5.30%, 1/1/15     | 1,000  | 1,052       
|North Carolina Eastern Municipal Power
    Agency                      |        |             
|5.375%, 1/1/16                                                         | 2,000  | 2,107       
|North Carolina Eastern Municipal Power Agency,
      6.70%, 1/1/19     | 3,965  | 4,309       
|North Carolina Eastern Municipal Power
    Agency                      |        |             
|7.50%, 1/1/10 (6)                                                      | 4,650  | 5,214       
|North Carolina Eastern Municipal Power Agency,
      7.50%, 1/1/10     | 4,330  | 4,758       
|North Carolina Municipal Power Agency #1, Catawba
      Electric       |        |             
|5.50%, 1/1/13                                                          | 5,335  | 5,708       
|North Carolina Municipal Power Agency #1, Catawba
      Electric       |        |             
|6.50%, 1/1/20                                                          | 4,500  | 4,881       
|                                                                       |        | 59,385      
|Ohio
    1.8%                                                          |        |             
|Cuyahoga County Hosp., Cleveland Clinic
      Health                   |        |             
|6.00%, 1/1/32                                                          | 7,600  | 8,343       
|Franklin County Hosp., Trinity Health, VRDN
      (Currently 3.45%)    | 2,800  | 2,800       
|Hamilton, Electric, 4.70%, 10/15/25
    (4)                            | 5,100  | 5,133       
|Montgomery County Hosp., Catholic Health
      Initiatives             |        |             
|6.00%, 12/1/19 (6)                                                     | 3,310  | 3,610       
|Montgomery County Hosp., Catholic Health
      Initiatives             |        |             
|6.00%, 12/1/19                                                         | 3,190  | 3,436       
|Ohio Air Quality Dev. Auth., Ohio Edison, 3.35%,
      6/1/33          |        |             
|(Tender 6/1/06)                                                        | 3,000  | 3,000       
|Ohio State Univ., 5.25%, 6/1/17 (Tender
      12/1/16)                 | 5,000  | 5,334       
|                                                                       |        | 31,656      
|Oklahoma
    0.6%                                                      |        |             
|Jackson County Memorial Hosp. Auth., 7.30%,
      8/1/15               | 1,875  | 1,897       
|Oklahoma Dev. Fin. Auth., Inverness Village, 8.00%,
      2/1/32       | 4,000  | 4,087       
|Tulsa County Home Fin. Auth., Single
    Family                        |        |             
|6.90%, 8/1/10 (5)(6)                                                   | 4,250  | 4,747       
|                                                                       |        | 10,731      
|Oregon
    0.3%                                                        |        |             
|Oregon Housing & Community Services Dept.,
      Single Family         |        |             
|6.00%, 7/1/20                                                          | 2,035  | 2,103       
|Umatilla County Hosp. Fac. Auth., Catholic Health
      Initiatives    |        |             
|5.50%, 3/1/22 (6)                                                      | 1,255  | 1,349       
|Umatilla County Hosp. Fac. Auth., Catholic Health
      Initiatives    |        |             
|5.50%, 3/1/22                                                          | 955    | 1,012       
|                                                                       |        | 4,464       
|Pennsylvania
      2.0%                                                |        |             
|Allegheny County Hosp. Dev. Auth., West Penn
      Allegheny           |        |             
|Health, 9.25%, 11/15/22                                                | 3,000  | 3,569       
|Chester County HEFA, Jefferson Health
    System                       |        |             
|5.375%, 5/15/27                                                        | 6,500  | 6,677       
|Cumberland County Municipal Auth., Wesley Affiliated
      Services    |        |             
|7.125%, 1/1/25                                                         | 3,000  | 3,269       
|Pennsylvania Higher EFA, Univ. of
      Pennsylvania                   |        |             
|4.75%, 7/15/35                                                         | 6,050  | 6,012       
|Pennsylvania Turnpike Commission, 5.25%, 12/1/32
      (7)             | 7,500  | 7,953       
|Pennsylvania Turnpike Commission, 5.50%,
      7/15/33                 |        |             
|(Prerefunded 7/15/11) (1)(7)                                           | 3,500  | 3,808       
|Saint Mary Hosp. Auth., Catholic Health
    East                       |        |             
|5.375%, 11/15/34                                                       | 1,350  | 1,401       
|West Shore Area Auth., Holy Spirit Hosp., 6.20%,
      1/1/26          | 3,250  | 3,424       
|                                                                       |        | 36,113      
|Puerto Rico
      0.6%                                                 |        |             
|Government Dev. Bank for Puerto Rico, GO, 5.00%,
      12/1/15         | 5,000  | 5,173       
|Government Dev. Bank for Puerto Rico, GO,
      TECP                   |        |             
|4.85%, 10/24/06                                                        | 5,500  | 5,500       
|                                                                       |        | 10,673      
|South Carolina
      2.2%                                              |        |             
|Connector 2000 Assoc., Zero Coupon,
    1/1/09                         | 2,700  | 1,753       
|Connector 2000 Assoc., Zero Coupon,
    1/1/10                         | 3,400  | 2,488       
|Connector 2000 Assoc., Zero Coupon,
    1/1/11                         | 2,200  | 872         
|Connector 2000 Assoc., Zero Coupon,
    1/1/29                         | 20,500 | 2,802       
|Georgetown County, PCR, Int'l. Paper, 5.70%,
      4/1/14              | 4,000  | 4,264       
|Medical Univ. Hosp. Auth., 5.00%, 8/15/31
    (2)                      | 19,145 | 19,570      
|Piedmont Municipal Power Agency, 6.50%, 1/1/14
      (5)(6)            | 500    | 582         
|Piedmont Municipal Power Agency, 6.50%, 1/1/14
      (5)               | 3,000  | 3,454       
|South Carolina Jobs Economic Dev. Auth., Bon Secours
      Health      |        |             
|5.625%, 11/15/30                                                       | 4,000  | 4,179       
|                                                                       |        | 39,964      
|South Dakota
      0.3%                                                |        |             
|South Dakota HEFA, Sioux Valley Hosp., 5.25%,
      11/1/27            | 2,000  | 2,065       
|South Dakota HEFA, Sioux Valley Hosp., 5.50%,
      11/1/31            | 3,000  | 3,156       
|                                                                       |        | 5,221       
|Tennessee
    1.2%                                                     |        |             
|Chattanooga Health Ed. & Housing Fac. Board,
      CDFI Phase 1        |        |             
|5.00%, 10/1/15                                                         | 1,485  | 1,495       
|Chattanooga Health Ed. & Housing Fac. Board,
      Chattanooga         |        |             
|Memorial Hosp., 6.625%, 9/1/07
(2)(6)                                  | 2,950  | 3,057       
|Chattanooga Health Ed. & Housing Fac. Board,
      Chattanooga         |        |             
|Memorial Hosp., 6.625%, 9/1/08
(2)(6)                                  | 3,150  | 3,349       
|Clarksville Public Building Auth., GO, VRDN
      (Currently 3.58%)    | 2,100  | 2,100       
|Metropolitan Nashville & Davidson Counties,
      Water & Sewer        |        |             
|7.70%, 1/1/12 (3)(5)                                                   | 6,250  | 7,144       
|Shelby County Health Ed. & Housing Board,
      Bonheur                |        |             
|5.50%, 8/15/12 (2)(6)                                                  | 4,000  | 4,227       
|                                                                       |        | 21,372      
|Texas
    5.7%                                                         |        |             
|Abilene Health Fac. Dev. Corp., Sears Methodist
      Retirement       |        |             
|System Obligation Group, 7.00%,
    11/15/33                           | 3,500  | 3,779       
|Amarillo Health Fac. Dev. Corp., Sears, 7.75%,
      8/15/26           |        |             
|(Prerefunded 8/15/06) (1)                                              | 5,000  | 5,141       
|Austin, Water & Wastewater, 5.125%, 5/15/27
      (4)                  | 10,955 | 11,233      
|Brazos River Auth., PCR, Centerpoint Energy, 7.75%,
      12/1/18      | 4,000  | 4,324       
|Dallas Independent School Dist., 5.00%,
      8/15/29                  | 5,000  | 5,142       
|Harris County Health Fac. Dev. Corp., 5.375%,
      2/15/26            |        |             
|(Prerefunded 8/15/11) (1)                                              | 5,500  | 5,893       
|Harris County Health Fac. Dev. Corp., 6.375%,
      6/1/29             |        |             
|(Prerefunded 6/1/11) (1)                                               | 4,000  | 4,481       
|Harris County Health Fac. Dev. Corp., Texas
      Childrens Hosp.     |        |             
|5.25%, 10/1/19                                                         | 5,000  | 5,138       
|Harris County Hosp. Dist., 7.40%, 2/15/10
      (6)(7)                 | 215    | 228         
|Houston, GO, 5.50%, 3/1/18 (4)                                         | 2,750  | 2,932       
|Houston Airport, 5.50%, 7/1/19 (4)                                     | 2,000  | 2,145       
|Houston Higher Ed. Fin. Corp., Rice Univ., 5.375%,
      11/15/29      |        |             
|(Prerefunded 11/15/09) (1)                                             | 11,450 | 12,160      
|Houston Independent School Dist., 5.00%,
      7/15/20                 |        |             
|(Prerefunded 7/15/11) (1)(4)                                           | 3,000  | 3,167       
|Houston Water & Sewer, 5.25%, 5/15/25
    (2)                          | 7,655  | 8,120       
|Houston Water & Sewer, 5.75%,
    12/1/18                              |        |             
|(Prerefunded 12/1/12) (1)(7)                                           | 3,000  | 3,308       
|Lower Colorado River Auth., 6.00%, 5/15/12
      (4)                   | 6,095  | 6,521       
|Sabine River Auth., PCR, TXU Energy, 5.80%,
      7/1/22               | 1,500  | 1,592       
|Sabine River Auth., PCR, TXU Energy, 6.15%,
      8/1/22               | 2,850  | 3,079       
|Tarrant County Health Fac. Dev. Corp., Baylor Health
      Care        |        |             
|5.375%, 11/15/21                                                       | 4,000  | 4,222       
|Texas A&M Univ., 5.375%, 5/15/16                                       | 1,660  | 1,771       
|Texas A&M Univ., 5.375%, 5/15/18                                       | 900    | 956         
|Texas Dept. of Housing & Community Affairs,
      Asmara               |        |             
|6.40%, 1/1/27 (Prerefunded 1/1/07)
    (1)                             | 5,820  | 6,027       
|                                                                       |        | 101,359     
|Virginia
    2.5%                                                      |        |             
|Fairfax County, COP, 6.10%, 4/15/32                                    | 10,000 | 11,189      
|Fairfax County Water Auth., 6.00%,
    4/1/22                          |        |             
|(Prerefunded 4/1/07) (1)                                               | 3,815  | 3,964       
|Fairfax County Water Auth., 6.00%,
    4/1/22                          | 3,835  | 3,978       
|Fredericksburg IDA, Medicorp Health, 5.25%,
      6/15/27              | 2,750  | 2,804       
|Greater Richmond Convention Center, 6.125%,
      6/15/29              |        |             
|(Prerefunded 6/15/10) (1)                                              | 8,550  | 9,378       
|James City & County IDA, Williamsburg
      Landing                    |        |             
|6.125%, 3/1/32                                                         | 2,000  | 2,090       
|Loudoun County IDA, Falcons Landing, 6.00%,
      8/1/24               | 2,500  | 2,635       
|Loudoun County IDA, Howard Hughes Medical
      Institute              |        |             
|VRDN (Currently 3.53%)                                                 | 4,425  | 4,425       
|Virginia Transportation Board, 5.25%,
    5/15/20                      |        |             
|(Prerefunded 5/15/11) (1)                                              | 4,620  | 4,934       
|                                                                       |        | 45,397      
|Washington
    4.0%                                                    |        |             
|Chelan County Public Utility Dist. #1, Rock Island
      Hydro         |        |             
|Zero Coupon, 6/1/18 (2)                                                | 10,100 | 5,747       
|Energy Northwest, Columbia Station, 5.00%,
      7/1/24                | 5,000  | 5,193       
|Energy Northwest, Public Power Supply, 5.25%, 7/1/16
      (4)         | 3,000  | 3,102       
|King County Public Hosp. Dist. #1, Valley Medical
      Center         |        |             
|5.75%, 9/1/20 (7)                                                      | 10,950 | 12,390      
|Millwood 99A Senior, Snohomish County Housing
      Auth.              |        |             
|5.50%, 6/1/29                                                          | 3,750  | 3,784       
|Port of Seattle, 5.50%, 2/1/26 (2)                                     | 6,000  | 6,323       
|Tacoma Solid Waste Utility, 5.50%, 12/1/17
      (7)                   | 12,080 | 12,469      
|Washington, GO, 5.70%, 10/1/15                                         | 14,000 | 15,575      
|Washington, Motor Vehicle Fuel Tax, 6.625%,
      1/1/25               |        |             
|(Prerefunded 1/1/10) (1)                                               | 6,100  | 6,687       
|                                                                       |        | 71,270      
|West Virginia
      0.9%                                               |        |             
|Mason County, PCR, Appalachian Power, 5.50%,
      10/1/22             | 8,000  | 8,132       
|West Virginia Building Commission, Court Fees,
      GO                |        |             
|5.375%, 7/1/18 (7)                                                     | 2,915  | 3,179       
|West Virginia Hosp. Fin. Auth., Oak Hill Hosp.,
      6.75%, 9/1/22    |        |             
|(Prerefunded 9/1/10) (1)                                               | 5,000  | 5,619       
|                                                                       |        | 16,930      
|Wisconsin
    0.7%                                                     |        |             
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/14 (Prerefunded 10/1/11)
    (1)                          | 910    | 992         
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/14                                                        | 90     | 98          
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/15 (Prerefunded 10/1/11)
    (1)                          | 1,005  | 1,095       
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/15                                                        | 95     | 103         
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/17 (Prerefunded 10/1/11)
    (1)                          | 3,395  | 3,700       
|Wisconsin HEFA, Froedert & Community
      Health                      |        |             
|5.625%, 10/1/17                                                        | 330    | 359         
|Wisconsin HEFA, United Health Group /
      Thedacare                  |        |             
|5.50%, 12/15/16 (2)                                                    | 6,540  | 6,815       
|                                                                       |        | 13,162      
|Total Municipal Securities (Cost
    $1,691,476)                       |        | 1,776,492   
|CONVERTIBLE BONDS
      0.1%                                           |        |             
|United Airlines, 5.00%, 1/25/21                                        | 1,125  | 1,083       
|Total Convertible Bonds (Cost
$1,114)                                  |        | 1,083       
|Total Investments in
      Securities                                  |        |             
|99.3% of Net Assets (Cost
      $1,692,590)                            | $      | 1,777,575   

|                                                                             | Denominated in U.S. dollars unless otherwise noted                                
|----------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
|(1)                                                                           | Prerefunded date is used in determining portfolio maturity.                       
|(2)                                                                           | Insured by MBIA Insurance Corp.                                                   
|(3)                                                                           | Stepped coupon bond for which the coupon rate of interest will adjust on specified
|                                                                              | future date(s)                                                                    
|(4)                                                                           | Insured by Financial Security Assurance Inc.                                      
|(5)                                                                           | Insured by Financial Guaranty Insurance Company                                   
|(6)                                                                           | Escrowed to maturity                                                              
|(7)                                                                           | Insured by AMBAC Assurance Corp.                                                  
|(8)                                                                           | Insured by XL Capital Assurance Inc.                                              
|(9)                                                                           | Insured by Radian Asset Assurance Inc.                                            
|CDA                                                                           | Community Development Administration/Authority                                    
|COP                                                                           | Certificate of Participation                                                      
|EFA                                                                           | Educational Facility Authority                                                    
|GO                                                                            | General Obligation                                                                
|HEFA                                                                          | Health & Educational Facility Authority                                           
|HFA                                                                           | Health Facility Authority                                                         
|HFC                                                                           | Housing Finance Corp.                                                             
|HFFA                                                                          | Health Facility Financing Authority                                               
|HHEFA                                                                         | Health & Higher Educational Facility Authority                                    
|IDA                                                                           | Industrial Development Authority/Agency                                           
|IDB                                                                           | Industrial Development Bond                                                       
|IDRB                                                                          | Industrial Development Revenue Bond                                               
|PCR                                                                           | Pollution Control Revenue                                                         
|PFA                                                                           | Public Finance Authority                                                          
|TAN                                                                           | Tax Anticipation Note                                                             
|TECP                                                                          | Tax-Exempt Commercial Paper                                                       
|TRAN                                                                          | Tax Revenue Anticipation Note                                                     
|VRDN                                                                          | Variable Rate Demand Note; rate shown is effective rate at period-end             
|                                                                             
|                                                                             
|                                                                             
|                                                                             
|The accompanying notes are an integral part of this Portfolio of Investments.

|T.
      ROWE PRICE TAX-FREE INCOME FUND |             
|---------------------------------------- | ------------
|Unaudited                                | May 31, 2006
|Notes To Portfolio of Investments        |             

NOTE 1 - SIGNIFICANT ACCOUNTING
POLICIES

T. Rowe Price Tax-Free Income Fund, Inc. (the
fund) is registered under the Investment Company Act of 1940 (the 1940 Act) as a
diversified, open-end management investment company. The fund seeks to provide a
high level of income exempt from federal income taxes by investing primarily in
long-term investment-grade municipal securities.

The accompanying portfolio of investments was
prepared in accordance with accounting principles generally accepted in the
United States of America, which require the use of estimates made by fund
management. Fund management believes that estimates and security valuations are
appropriate; however actual results may differ from those estimates, and the
security valuations reflected in the portfolio of investments may differ from
the value the fund receives upon sale of the securities.

Valuation

The fund values its investments and computes its
net asset value per share at the close of the New York Stock Exchange (NYSE),
normally 4 p.m. ET, each day that the NYSE is open for business. Debt securities
are generally traded in the over-the-counter market. Securities are valued at
prices 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.

Other investments and those 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 the T. Rowe Price
Valuation Committee, established by the funds Board of Directors.

Investment Transactions

Investment transactions are accounted for on the
trade date.

NOTE 2 - FEDERAL INCOME TAXES

At May 31, 2006, the cost of investments for
federal income tax purposes was $1,690,615,000. Net unrealized gain aggregated
$86,960,000 at period-end, of which $91,701,000 related to appreciated
investments and $4,741,000 related to depreciated
investments.

Item 2. Controls and
Procedures.

(a) The registrants principal executive
officer and principal financial officer have evaluated the registrants
disclosure controls and procedures within 90 days of this filing and have
concluded that the registrants disclosure controls and procedures were
effective, as of that date, in ensuring that information required to be
disclosed by the registrant in this Form N-Q was recorded, processed,
summarized, and reported timely.

(b) The registrants principal executive
officer and principal financial officer are aware of no change in the
registrants internal control over financial reporting that occurred during the
registrants most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrants internal control over
financial reporting.

Item 3. Exhibits.

Separate certifications by the
registrant's principal executive officer and principal financial officer,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule
30a-2(a) under the Investment Company Act of 1940, are
attached.

|                                                                                                        | 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.                                                          
|                                                                                                       
|T. Rowe Price Tax-Free Income Fund,
      Inc.                                                         
|                                                                                                       
|                                                                                                       
|By                                                                                                      | /s/ Edward C. Bernard                                                                       
|                                                                                                        | Edward C. Bernard                                                                           
|                                                                                                        | Principal Executive Officer                                                                 
|                                                                                                       
|Date                                                                                                    | July 24, 2006                                                                               
|                                                                                                       
|                                                                                                       
|                                                                                                        | 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.                                 
|                                                                                                       
|                                                                                                       
|                                                                                                       
|By                                                                                                      | /s/ Edward C. Bernard                                                                       
|                                                                                                        | Edward C. Bernard                                                                           
|                                                                                                        | Principal Executive Officer                                                                 
|                                                                                                       
|Date                                                                                                    | July 24, 2006                                                                               
|                                                                                                       
|                                                                                                       
|                                                                                                       
|By                                                                                                      | /s/ Joseph A. Carrier                                                                       
|                                                                                                        | Joseph A. Carrier                                                                           
|                                                                                                        | Principal Financial Officer                                                                 
|                                                                                                       
|Date                                                                                                    | July 24, 2006                                                                               
|                                                                                                       
|                                                                                                       
|                                                                                                       
|                                                                                                       
|«Fund_Abbrev__NQ»