Scudder Massachusetts
Tax Free Fund
Supplement to Prospectus
Dated August 1, 1998
The following replaces text in the "Why invest in these Funds?" section on page
10:
As illustrated by the chart on the preceding page, depending on your tax bracket
and individual situation, you may earn a substantially higher after-tax return
from these Funds than from comparable investments that pay income subject to
both Massachusetts personal income tax and regular federal income tax. For
example, if your regular federal marginal tax rate is 36% and your Massachusetts
tax rate is 12%, your effective combined marginal tax rate is 43.68% when
adjusted for the deductibility of state taxes. This means, for example, you
would need to earn a taxable return of 7.44% to receive after-tax income equal
to the 4.19% tax-free yield provided by Scudder Massachusetts Tax Free Fund for
the 30-day period ended March 31, 1998, or earn a taxable return of 6.9% to
receive after-tax income equal to the 3.9% tax-free yield provided by Scudder
Massachusetts Limited Term Tax Free Fund for the 30-day period ended October 31,
1997. In other words, it would be necessary to earn $1,775 from a taxable
investment to equal $1,000 of tax-free income you receive from either Fund. The
yield levels of tax-free and taxable investments continually change. Before
investing in a Fund, you should compare its yield to the after-tax yield you
would receive from a comparable investment paying taxable income.
September 2, 1998
