<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
TAX-FREE TRUST AUGUST 31, 2000 SEMI-ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIR
ETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 203
<NAME> FRANKLIN ARIZONA TAX-FREE INCOME FUND - CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-2001
<PERIOD-END> AUG-31-2000
<INVESTMENTS-AT-COST> 782,298,913
<INVESTMENTS-AT-VALUE> 781,341,272
<RECEIVABLES> 11,064,496
<ASSETS-OTHER> 5,550,966
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 797,956,734
<PAYABLE-FOR-SECURITIES> 2,242,930
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,380,976
<TOTAL-LIABILITIES> 7,623,906
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 792,999,679
<SHARES-COMMON-STOCK> 2,113,270
<SHARES-COMMON-PRIOR> 2,183,584
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (976,887)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (732,323)
<ACCUM-APPREC-OR-DEPREC> (957,641)
<NET-ASSETS> 790,332,828
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 23,796,155
<OTHER-INCOME> 0
<EXPENSES-NET> (2,561,680)
<NET-INVESTMENT-INCOME> 21,234,475
<REALIZED-GAINS-CURRENT> 2,689,483
<APPREC-INCREASE-CURRENT> 26,938,871
<NET-CHANGE-FROM-OPS> 50,862,829
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (552,903)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 160,534
<NUMBER-OF-SHARES-REDEEMED> (260,050)
<SHARES-REINVESTED> 29,202
<NET-CHANGE-IN-ASSETS> 11,212,150
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (785,063)
<OVERDIST-NET-GAINS-PRIOR> (3,421,806)
<GROSS-ADVISORY-FEES> (1,879,251)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (2,561,680)
<AVERAGE-NET-ASSETS> 778,371,808
<PER-SHARE-NAV-BEGIN> 10.380
<PER-SHARE-NII> .260<F1>
<PER-SHARE-GAIN-APPREC> .400
<PER-SHARE-DIVIDEND> (.260)<F2>
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.780
<EXPENSE-RATIO> 1.200<F3>
<FN>
<F1>BASED ON AVERAGE SHARES OUTSTANDING.
<F2>INCLUDES DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME IN THE AMOUNT OF $.002.
<F3>ANNUALIZED
</FN>
</TABLE>
