SUPPLEMENT DATED JULY 7, 1998
TO THE PROSPECTUS OF
FRANKLIN TAX-FREE TRUST
(TF3 - ARIZONA, COLORADO, CONNECTICUT, FEDERAL INTERMEDIATE, HIGH YIELD,
INDIANA, MICHIGAN, NEW JERSEY, OREGON, PENNSYLVANIA, AND PUERTO RICO TAX-FREE
INCOME FUNDS)
DATED JULY 1, 1998
The prospectus is amended to add the following new sales charge waiver
category to the second list of waiver categories in the section "Sales Charge
Waivers," found under "How Do I Buy Shares? - Sales Charge Reductions and
Waivers":
Customers of J.B. Hanauer & Co. who sold shares of a fund that is not a
Franklin Templeton Fund if (i) the investment goals of the fund were
similar to the High Yield Fund's investment goals and (ii) the
customer's shares in that fund were subject to any front-end or
contingent deferred sales charges at the time of purchase. This waiver
category only applies to purchases of shares of the High Yield Fund
made on or before December 31, 1998.
