SUPPLEMENT DATED JANUARY 5, 1998
TO THE PROSPECTUS OF
Franklin Tax-Free Trust
(TF3 - Arizona, Colorado, Connecticut, High Yield, Indiana, Michigan,
New Jersey, Oregon, Pennsylvania, and Puerto Rico Tax-Free Income Funds)
dated July 1, 1997
The prospectus is amended to replace the first paragraph under "How Do I Sell
Shares? - Contingent Deferred Sales Charge" with the following:
For Class I purchases, if you did not pay a front-end sales charge because you
invested $1 million or more or agreed to invest $1 million or more under a
Letter of Intent, a Contingent Deferred Sales Charge may apply if you sell all
or a part of your investment within the Contingency Period. Once you have
invested $1 million or more, any additional Class I investments you make without
a sales charge may also be subject to a Contingent Deferred Sales Charge if they
are sold within the Contingency Period. A Contingent Deferred Sales Charge will
not apply, however, to Class I purchases over $250 million in the High Yield
Fund. For any Class II purchase, a Contingent Deferred Sales Charge may apply if
you sell the shares within the Contingency Period. The charge is 1% of the value
of the shares sold or the Net Asset Value at the time of purchase, whichever is
less.
