Fixed Income

FFTQX Franklin Federal Tax-Free Income Fund

Tax-free income. Monthly income exempt from federal taxes.
Broad access. Invests across all sectors and maturities within the investment grade rated municipal bond universe.
Portfolio diversification. Can be used as a core portfolio holding, providing diversification from equities.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks to provide investors with as high a level of income exempt from regular federal income taxes as is consistent with prudent investment management and the preservation of shareholders' capital.

Benchmark: Bloomberg Municipal Bond Index
Fund Inception Date: 10/07/1983
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁴As of 02/06/2026 (Updated Daily): 4.00%
30-Day SEC Yield—With Waiver^5,6,7As of 12/31/2025 (Updated Monthly): 3.77%
30-Day SEC Yield—Without Waiver^6,7As of 12/31/2025 (Updated Monthly): 3.77%
Taxable Equivalent Yield—With WaiverAs of 12/31/2025 (Updated Monthly): 6.37%
Taxable Equivalent Yield—Without WaiverAs of 12/31/2025 (Updated Monthly): 6.37%

Sales Charges, Expenses & Fees

As of 09/01/2025

Gross Expense Ratio⁸: 0.48%
Net Expense Ratio^8,9: 0.48%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: —

Identifiers

Ticker: FFTQX
Fund Number: 8116
CUSIP Code: 353519606

Average Annual Total Returns As of 12/31/2025

View performance section for additional info As of 12/31/2025

Class R6

With Sales Charge (POP)

Without Sales Charge (NAV)

3.61%1 Year
4.70%3 Years
0.81%5 Years
2.15%10 Years
5.67%Since Inception
10/07/1983

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 12/31/2025 % of Total (Updated Monthly)

Top Sectors
Transportation18.51%
Health Care15.91%
Housing14.72%
Industrial Dev. Revenue and Pollution Control11.40%
Local7.79%

Additional Fund Info

Share Class Inception Date: 08/01/2017
Investment Style: Municipals
Lipper Classification: General & Insured Municipal Debt Funds
Morningstar Category¹⁰: Muni National Long

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-drives approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

12/31/2025

Markets: In the fourth quarter of 2025 (Q4) new issuance of municipal (muni) bonds increased 14% year-over-year compared to 2024, culminating in a new annual record with tax-exempt issuance surpassing $500 billion (Source: Barclays). By quarter-end, the yield on the benchmark 10-year US Treasury (UST) note moved two basis points (bps) higher to 4.17%, and the yield on the 30-year UST bond increased by 11 bps to 4.84%. US market sentiment dipped throughout the quarter due to consumers’ concerns over personal finances problems, driven by weak labor and persistent inflation expectations, according to the latest University of Michigan consumer surveys. The mid-November resolution of the US federal government shutdown supported sentiment through year-end. Federal Reserve (Fed) policy also drove overall returns, with three consecutive 25-bp rate cuts, which were well received by the market. However, the future path of cuts grew ambiguous as Fed members were split on the need for further adjustments.
Contributors : An overweight allocation to muni bonds with 20 or more years to maturity, and security selection in BB and BBB rated bonds.
Detractors : An underweight allocation to muni bonds with 10 years to maturity, and an overweight allocation to BB rated bonds.
Outlook : Municipal bond valuations continue to appear attractive, particularly on a tax-adjusted basis. In a more challenging environment, strong bottom-up research and disciplined security selection will be essential to identifying relative value and preserving portfolio quality.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2020

Managed Fund Since 2024

Managed Fund Since 1996

Managed Fund Since 2018

Latest Insights

January 26, 2026

European fixed income outlook—cautious optimism

January 20, 2026

The municipal bond market outlook: Continued stability—a good sign for investors

January 15, 2026

Flash Insights: Addressing US housing affordability—a targeted financing approach

January 8, 2026

Flash Insights: Notes on Venezuela

Performance

Average Annual Total Returns

¹³

As of 12/31/2025

Month End

Quarter End

As of

Class R6 - With Sales Charge (POP) (%)

Month End

As of 12/31/2025

Class R6 - Without Sales Charge (NAV) (%)

Month End

As of 12/31/2025

Bloomberg Municipal Bond Index (%)

Month End

As of 12/31/2025

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 01/31/2026

3 Years: 3 Years: 4 out of 5 stars
156 Funds in category

5 Years: 5 Years: 4 out of 5 stars
153 Funds in category

10 Years: 10 Years: 4 out of 5 stars
The Morningstar Rating™ for this share class is based on Morningstar's extended performance calculation. This means that, for a share class that doesn't have a 1-, 3-, 5-, or 10-year performance history, the rating shown is a hypothetical Morningstar Rating based first on the oldest active surviving share class of the fund and then any dormant or liquidated share classes. If more than one share class has the earliest inception date, Morningstar selects the share class that is freely available to investors, that is not currency-hedged, and has the lowest fee.
109 Funds in category

Rating Category: Muni National Long

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of12/31/2025 (Updated Monthly)

Total Net Assets: $7.83 Billion

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 992
Benchmark: 63,945

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Average Weighted Maturity

Fund: 19.31 Years
Benchmark: 13.52 Years

Effective Duration

Fund: 8.29 Years
Benchmark: —

Sector Allocation

As of 12/31/2025 % of Total (Updated Monthly)

Sector Allocation
Sector	% of Total
Transportation	18.51%
Health Care	15.91%
Housing	14.72%
Industrial Dev. Revenue and Pollution Control	11.40%
Local	7.79%
Utilities	7.32%
Special Tax	7.23%
Education	6.74%
Lease	5.62%
State General Obligation	2.58%
Refunded	1.52%
Other Revenue Bonds	0.26%
Not Available	0.00%
Cash & Cash Equivalents	0.40%

Holdings
As of 12/31/2025 (Updated Monthly)

Public Finance Authority

New York State Dormitory Authority

Tennergy Corp/TN MP

San Mateo Foster City School District/CA

Louisiana Public Facilities Authority

Capital Trust Authority

New York Liberty Development Corp

Metropolitan Transportation Authority

California Community Choice Financing Authority MP

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Federal ID Number 94-2821264

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Jan 31	—	—	—	—	—	—	—	0.035121771	—
Feb 28	—	—	—	—	—	—	—	0.031438801	—
Mar 31	—	—	—	—	—	—	—	0.032999117	—
Apr 30	—	—	—	—	—	—	—	0.034598446	—
May 30	0.000257936	—	—	—	—	—	—	0.036523124	—
Jun 30	0.00023156	—	—	—	—	—	—	0.032788379	—
Jul 31	0.000248617	—	—	—	—	—	—	0.035203655	—
Aug 29	0.000258341	—	—	—	—	—	—	0.03658058	—
Sep 30	0.000233845	—	—	—	—	—	—	0.033111956	—
Oct 31	0.00026662	—	—	—	—	—	—	0.037752861	—
Nov 28	0.00022655	—	—	—	—	—	—	0.03207902	—
Dec 31	0.000261128	—	—	—	—	—	—	0.036975167	—
	0.001984597	—	—	—	—	—	—	0.415172877	—

Jan 31

Feb 28

Mar 31

Apr 30

May 30

Jun 30

Jul 31

Aug 29

Sep 30

Oct 31

Nov 28

Dec 31

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: 14.36%
Dividends Received Deduction: —
Section 163(j): 100.00%
Indiana Resident Taxable Income: 88.51%
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: 67.99%

Tax-Exempt Income By Jurisdiction

Alabama: 3.85%

Alaska: 0.18%

Arizona: 1.72%

Arkansas: 0.15%

California: 10.01%

Colorado: 3.19%

Connecticut: 0.22%

Delaware: 0.09%

Dist. of Columbia: 1.80%

Florida: 8.69%

Georgia: 2.92%

Hawaii: 1.18%

Idaho: 0.22%

Illinois: 6.38%

Indiana: 1.94%

Iowa: 0.63%

Kansas: 0.28%

Kentucky: 1.21%

Louisiana: 3.33%

Maine: 0.02%

Maryland: 1.83%

Massachusetts: 1.67%

Michigan: 0.46%

Minnesota: 0.05%

Mississippi: 0.82%

Missouri: 0.60%

Montana: 0.18%

Nebraska: 0.42%

Nevada: 0.20%

New Hampshire: 0.64%

New Jersey: 2.98%

New Mexico: 0.26%

New York: 8.87%

North Carolina: 0.82%

North Dakota: 0.49%

Ohio: 2.13%

Oklahoma: 0.17%

Oregon: 1.14%

Pennsylvania: 1.36%

Puerto Rico: 0.66%

Rhode Island: 0.10%

South Carolina: 1.74%

South Dakota: 0.46%

Tennessee: 3.54%

Texas: 11.46%

Utah: 1.25%

Virginia: 0.53%

Washington: 2.54%

West Virginia: 0.72%

Wisconsin: 4.07%

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 02/06/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 02/06/2026

Share Prices

As of 02/06/2026

NAV ¹(Net Asset Value): $10.86
NAV Change ¹: $0.01
NAV Change (%) ¹: 0.09%
POP ¹²(Public Offering Price): $10.86

52-Week Range

Highest NAV As of 02/28/2025: $10.90
Lowest NAV As of 04/09/2025: $10.19

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download
Checkbox	Factsheet - Franklin Federal Tax-Free Income Fund	Download Document
Checkbox	Product Commentary - Franklin Federal Tax-Free Income Fund	Download Document
Checkbox	Market commentary - Franklin Municipal Tax-Free Income Update	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Federal Tax-Free Income Fund Class R6	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Federal Tax-Free Income Fund	Download Document
Checkbox	Semi-Annual Report - Franklin Federal Tax-Free Income Fund - Class R6	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Franklin Federal Tax–Free Income Fund	Download Document
Checkbox	Prospectus - Franklin Federal Tax-Free Income Fund	Download Document
Checkbox	Summary Prospectus - Franklin Federal Tax-Free Income Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Federal Tax-Free Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Federal Tax-Free Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Federal Tax-Free Income FundMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. 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. An investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. These and other risks are discussed in the fund’s prospectus.

Important Information

Click here for funds sales charge and breakpoint information.

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

The Bloomberg Municipal Bond Index is a broad measure of the municipal bond market with maturities of at least one year.
Source: Bloomberg Indices.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The Taxable Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax. Dividends are general subject to state and local taxes, if any. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains may be taxable.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Performance quotations have been calculated as follows: (a) for periods prior to 8/1/2017, a restated figure is used based on the fund’s Advisor Class performance, adjusted to take into account differences in class-specific operating expenses and (b) for periods after 8/1/2017, actual Class R6 performance is used, reflecting all charges and fees applicable to that class.
Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as S&P Global Ratings, Moody's Investors Service and Fitch Ratings, Inc. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Refunded category consists of refunded bonds secured by the US government or other high-quality securities. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. The Not Applicable category consists of third-party exchange-traded funds and securities that have only a short-term rating and are not cash equivalents. Cash includes equivalents, which may be rated. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor

FFTQX Franklin Federal Tax-Free Income Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class R6

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Sector Allocation

Distributions & Tax

Federal ID Number 94-2821264

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³