UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
 
Investment Company Act file number 811-03395
 
Franklin Federal Tax-Free Income Fund

(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices)(Zip code)
 
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 4/30
 
Date of reporting period: 4/30/22
 
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.   
Not Applicable
.
 
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Federal
Tax-Free
Income
Fund
April
30,
2022
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up
for
electronic
delivery
at
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Insured
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Bank
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franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
April
30,
2022,
the
U.S.
economy
showed
progress
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment
and
rising
wages
and
personal
consumption.
Growth
mostly
accelerated
in
2021
as
the
reopening
of
businesses,
widespread
vaccinations
and
federal
assistance
programs
boosted
consumer
spending,
excepting
slower
third-quarter
growth
as
the
swiftly
spreading
Delta
variant
hindered
global
supply
chains.
The
U.S.
economy
contracted
in
2022’s
first
quarter
given
a
record
trade
deficit
and
a
decline
in
inventory
investment.
Inflation
increased
during
the
12-month
period,
influenced
by
pandemic-related
supply
chain
issues,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
During
most
of
the
period,
the
U.S.
Federal
Reserve
continued
quantitative
easing
measures
to
bolster
credit
markets
and
encourage
ongoing
U.S.
economic
activity.
However,
the
Federal
Reserve
decreased
its
monthly
asset
purchases
starting
in
November
2021,
increased
its
tapering
in
subsequent
months
and
ended
purchases
in
March
2022.
To
support
its
goals
of
maximizing
employment
and
returning
long-term
annual
inflation
to
2%,
the
Federal
Reserve
raised
the
federal
funds
rate
by
0.25%,
from
a
level
of
0.25%
to
0.50%
at
its
March
meeting.
Shortly
after
the
reporting
period,
at
its
May
meeting,
the
Federal
Reserve
raised
its
key
rate
again
by
0.50%
or
50
basis
points
to
a
level
of
1.00%
and
stated
its
anticipation
of
future
increases.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-7.88%
cumulative
total
return.
1
After
benefiting
from
strong
demand
that
supported
strong
municipal
bond
valuations
early
in
the
reporting
period,
by
the
end
of
2021
and
through
period-
end,
valuations
declined
amid
increased
U.S.
Treasury
bond
volatility
influenced
by
the
expectation
and
implementation
of
tighter
monetary
policy.
Franklin
Federal
Tax-Free
Income
Fund’s
annual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Federal
Tax-Free
Income
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Franklin
Federal
Tax-Free
Income
Fund
3
Performance
Summary
5
Your
Fund’s
Expenses
8
Financial
Highlights
and
Schedule
of
Investments
9
Financial
Statements
49
Notes
to
Financial
Statements
53
Report
of
Independent
Registered
Public
Accounting
Firm
62
Tax
Information
63
Board
Members
and
Officers
64
Shareholder
Information
69
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Franklin
Federal
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Federal
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
April
30,
2022.
The
reorganization
of
Franklin
Florida
Tax-Free
Income
Fund,
Franklin
Kentucky
Tax-Free
Income
Fund
and
Franklin
Tennessee
Municipal
Bond
Fund
(each,
a
“Target
Fund”)
into
Franklin
Federal
Tax-Free
Income
Fund,
as
approved
by
shareholders,
was
completed
on
November
19,
2021.
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class
shares
of
each
Target
Fund
were
exchanged
for
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class
shares,
as
applicable,
of
Franklin
Federal
Tax-Free
Income
Fund,
and
each
Target
Fund
was
liquidated
and
dissolved.
The
former
shareholders
of
each
Target
Fund
became
shareholders
of
Franklin
Federal
Tax-Free
Income
Fund.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
investment-grade
municipal
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.31
on
April
30,
2021,
to
$10.97
on
April
30,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
30.4100
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
5
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.64%
based
on
an
annualization
of
April’s
2.6367
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.40
on
April
30,
2022.
An
investor
in
the
2021
maximum
federal
personal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.46%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
*Does
not
include
cash
and
cash
equivalents.
Municipal
Bond
Market
Overview
During
the
12
months
ended
April
30,
2022,
COVID-19
variants
continued
to
be
a
significant
driver
of
market
forces.
With
each
successive
wave
of
infections,
health
authorities
resisted
returning
to
high
levels
of
social
distancing
restrictions,
which
allowed
economic
activity
to
improve.
U.S.
consumer
inflation
emerged
as
a
large
concern
as
pent-up
demand
for
goods
was
met
with
stretched
global
supply
chains.
U.S.
Treasury
(UST)
yields
rose
significantly
across
the
maturity
curve
as
the
U.S.
Federal
Reserve
started
the
process
of
removing
accommodative
monetary
policies
enacted
to
combat
the
COVID-19-induced
economic
slowdown.
Strong
demand
for
municipal
bonds
(munis)
drove
valuations
higher
with
the
ratio
of
30-year
muni
versus
UST
yields
reaching
an
all-time
best
in
June
2021.
As
market
volatility
Portfolio
Composition
4/30/22
%
of
Total
Investments*
Health
Care
19.48%
Transportation
16.76%
Utilities
14.44%
Special
Tax
8.31%
Housing
7.06%
Refunded
6.42%
Industrial
Dev.
Revenue
and
Pollution
Control
6.23%
Lease
6.01%
Education
5.74%
Local
5.04%
State
General
Obligation
4.04%
Other
Revenue
Bonds
0.32%
Not
Available
0.15%
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
14
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Annual
Report
increased,
fund
flows
turned
negative
and
muni
performance
suffered.
High
levels
of
U.S.
inflation
will
have
a
mixed
impact
on
muni
fundamentals.
While
higher
prices
may
lead
to
more
revenue
from
sales
taxes,
wages
are
typically
an
issuer’s
largest
operating
expense,
which
could
force
some
issuers
to
give
employees
raises
to
keep
pace
with
increasing
costs
of
living.
For
the
12-month
period,
U.S.
fixed
income
sectors
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+0.21%
total
return
for
the
period.
3
In
contrast,
investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-7.88%
total
return.
3
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-7.35%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-10.43%
total
return.
3
Investment
Strategy
We
select
securities
that
we
believe
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
Our
relative
value-oriented
approach
of
investing
primarily
for
income
and
preservation
of
principal,
when
combined
with
a
positive-sloping
municipal
yield
curve,
in
which
yields
for
longer-term
bonds
are
higher
than
those
for
shorter-
term
bonds,
led
us
to
favor
longer-term
bonds
during
the
period
under
review.
Consistent
with
our
strategy,
we
sought
to
remain
invested
in
bonds
ranging
from
20
to
30
years
in
maturity
with
good
call
features.
Our
relative-value,
income-oriented
philosophy
also
led
the
Fund
to
invest
in
credit
driven
securities
rated
A
and
below
as
credit
spreads
widened,
which
provided
both
income
and
performance
during
the
reporting
period.
We
believe
our
disciplined
relative
value
approach
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
3.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
April
30,
2022
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4/30/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-8.62%
-12.05%
5-Year
+6.56%
+0.51%
10-Year
+24.34%
+1.81%
Advisor
1-Year
-8.39%
-8.39%
5-Year
+7.68%
+1.49%
10-Year
+26.33%
+2.37%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.64%
4.46%
2.62%
4.43%
Advisor
2.99%
5.05%
2.97%
5.02%
See
page
7
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
6
franklintempleton.com
Annual
Report
See
page
7
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
April
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
4/30/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Net
Investment
Income
A
$0.304100
A1
$0.322347
C
$0.255518
R6
$0.339432
Advisor
$0.334513
Total
Annual
Operating
Expenses
9
Share
Class
A
0.78%
Advisor
0.53%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
8
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$911.80
$3.67
$1,020.96
$3.88
0.77%
A1
$1,000
$911.80
$2.96
$1,021.70
$3.13
0.62%
C
$1,000
$909.10
$5.56
$1,018.97
$5.88
1.17%
R6
$1,000
$913.20
$2.29
$1,022.40
$2.42
0.48%
Advisor
$1,000
$912.30
$2.48
$1,022.20
$2.62
0.52%
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
Year
Ended
April
30,
Year
Ended
April
30,
2019
a
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$12.31
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.31
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
........................
(1.35)
0.71
(0.22)
0.19
Total
from
investment
operations
.................................
(1.04)
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
.......................................
(0.30)
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
year
....................................
$10.97
$12.31
$11.60
$11.82
Total
return
d
................................................
(8.62)%
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
..................................................
0.77%
g
0.78%
g
0.77%
0.78%
Net
investment
income
........................................
2.56%
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$1,916,791
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
.........................................
22.08%
16.18%
20.23%