<PAGE> PAGE 1
000 A000000 06/30/96
000 C000000 0000216494
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 KEYSTONE TAX FREE FUND
001 B000000 811-2740
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
002 D020000 5034
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007 C010900 9
007 C011000 10
008 A000001 KEYSTONE INVESTMENT MANAGEMENT CO (KEYSTONE)
008 B000001 A
008 C000001 801-8327
008 D010001 BOSTON
008 D020001 MA
008 D030001 02116
008 D040001 5034
010 A000001 KEYSTONE INVESTMENTS, INC. (KII)
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
010 C040001 5034
011 A000001 KEYSTONE INVESTMENT DISTRIBUTORS CO. (KIDC)
011 B000001 8-395
011 C010001 BOSTON
011 C020001 MA
011 C030001 02116
011 C040001 5034
<PAGE> PAGE 2
012 A000001 KEYSTONE INVESTOR RESOURCE CENTER
012 B000001 84-1571
012 C010001 CAMBRIDGE
012 C020001 MA
012 C030001 02192
013 A000001 KPMG - PEAT MARWICK, LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02110
018 000000 Y
019 A000000 Y
019 B000000 24
019 C000000 KEYGROUPPA
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 PAINE WEBBER INCORPORATED
022 C000001 153704
022 D000001 157773
022 A000002 WILLIAM SIMON MUNICIPAL SEC
022 C000002 68792
022 D000002 126781
022 A000003 LEHMAN BROTHERS INC.
022 C000003 79163
022 D000003 101292
022 A000004 MERRILL LYNCH PIERCE FENNER
022 C000004 54781
022 D000004 58374
022 A000005 SMITH BARNEY INC.
022 C000005 44135
022 D000005 68376
022 A000006 MORGAN STANLEY & CO., INC.
022 C000006 44169
022 D000006 45287
022 A000007 DILLON REED & CO.
022 C000007 26569
022 D000007 27674
022 A000008 GOLDMAN SACHS
022 C000008 21598
022 D000008 25837
022 A000009 LEHMAN BROTHERS SEC.
022 C000009 22299
022 D000009 22484
<PAGE> PAGE 3
022 A000010 REGIONAL OPERATIONS GROUP
022 C000010 9952
022 D000010 15091
023 C000000 1321473
023 D000000 853841
024 000000 N
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE J. KEVIN KENELY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE TAX FREE FUND CLASS A
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 1,581,271,307
<INVESTMENTS-AT-VALUE> 1,648,779,782
<RECEIVABLES> 30,177,808
<ASSETS-OTHER> 784,087
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,679,741,677
<PAYABLE-FOR-SECURITIES> 7,027,492
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,844,674
<TOTAL-LIABILITIES> 14,872,166
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,626,403,526
<SHARES-COMMON-STOCK> 219,881,244
<SHARES-COMMON-PRIOR> 153,295,044
<ACCUMULATED-NII-CURRENT> 548,929
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (29,591,419)
<ACCUM-APPREC-OR-DEPREC> 67,508,475
<NET-ASSETS> 1,664,869,511
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 47,308,428
<OTHER-INCOME> 0
<EXPENSES-NET> (6,200,642)
<NET-INVESTMENT-INCOME> 41,107,786
<REALIZED-GAINS-CURRENT> (657,141)
<APPREC-INCREASE-CURRENT> (60,689,674)
<NET-CHANGE-FROM-OPS> (20,239,029)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (38,895,771)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 95,418,891
<NUMBER-OF-SHARES-REDEEMED> (31,359,834)
<SHARES-REINVESTED> 2,527,143
<NET-CHANGE-IN-ASSETS> 460,401,469
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,663,086)
<OVERDIST-NET-GAINS-PRIOR> (28,934,278)
<GROSS-ADVISORY-FEES> (3,205,365)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (6,200,642)
<AVERAGE-NET-ASSETS> 1,532,624
<PER-SHARE-NAV-BEGIN> 7.86
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> (0.31)
<PER-SHARE-DIVIDEND> (0.19)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 7.57
<EXPENSE-RATIO> 0.83
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
On February 29, 1996, the Fund acquired the net assets of Keystone Tax Exempt
Trust in exchange for shares of the Fund pursuant to plan of reorganization
approved by the shareholders of Keystone Tax Exempt Trust on February 29, 1996.
The acquisition was accomplished by a tax-free exchange of shares of the Fund
for the net assets of Keystone Tax Exempt Trust. The net assets of Keystone Tax
Exempt Trust on that date, including $40,609,975 of unrealized appreciation on
investments, were combined with the Fund, The aggregate net assets of the Fund
and Keystone Tax Exempt Trust immediately before the acquisition was
$1,800,970,092.
<PAGE>
