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<PAGE> PAGE 12
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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SIGNATURE JOHN R. ELDER
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<ACCUMULATED-NET-GAINS> (4,822,290)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,907,543
<NET-ASSETS> 459,591,367
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 11,207,089
<OTHER-INCOME> 0
<EXPENSES-NET> 1,777,006
<NET-INVESTMENT-INCOME> 9,430,083
<REALIZED-GAINS-CURRENT> 290,419
<APPREC-INCREASE-CURRENT> 6,020,732
<NET-CHANGE-FROM-OPS> 15,741,234
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (9,457,025)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 438,461,762
<NUMBER-OF-SHARES-REDEEMED> 8,905,232
<SHARES-REINVESTED> (70,037,469)
<NET-CHANGE-IN-ASSETS> 383,613,734
<ACCUMULATED-NII-PRIOR> 88,060
<ACCUMULATED-GAINS-PRIOR> (5,112,709)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,666,267
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,417,052
<AVERAGE-NET-ASSETS> 222,168,958
<PER-SHARE-NAV-BEGIN> 11.42
<PER-SHARE-NII> 0.49
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.50)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.69
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000794047
<NAME> CITIFUNDS TAX FREE INCOME TRUST
<SERIES>
<NUMBER>002
<NAME>CITIFUNDS NATIONAL TAX FREE INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 1-year
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 232,880,211
<INVESTMENTS-AT-VALUE> 234,556,373
<RECEIVABLES> 32,977,916
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 363,815
<TOTAL-ASSETS> 267,898,104
<PAYABLE-FOR-SECURITIES> 6,998,907
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 6,998,907
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 257,612,752
<SHARES-COMMON-STOCK> 22,704,765
<SHARES-COMMON-PRIOR> 175,557
<ACCUMULATED-NII-CURRENT> 7,247
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 151,119
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,676,162
<NET-ASSETS> 259,447,280
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,724,659
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 2,724,659
<REALIZED-GAINS-CURRENT> 592,752
<APPREC-INCREASE-CURRENT> 1,540,941
<NET-CHANGE-FROM-OPS> 4,858,352
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,720,230)
<DISTRIBUTIONS-OF-GAINS> (441,633)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 275,004,330
<NUMBER-OF-SHARES-REDEEMED> (22,098,909)
<SHARES-REINVESTED> 2,928,727
<NET-CHANGE-IN-ASSETS> 257,530,637
<ACCUMULATED-NII-PRIOR> 2,818
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 455,263
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 761,134
<AVERAGE-NET-ASSETS> 60,701,770
<PER-SHARE-NAV-BEGIN> 10.92
<PER-SHARE-NII> 0.52
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.54)
<PER-SHARE-DISTRIBUTIONS> (0.02)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.43
<EXPENSE-RATIO> 0.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000794047
<NAME> CITIFUNDS TAX FREE INCOME TRUST
<SERIES>
<NUMBER>003
<NAME>CITIFUNDS CALIFORNIA TAX FREE INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 1-year
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 99,844,855
<INVESTMENTS-AT-VALUE> 100,170,957
<RECEIVABLES> 8,185,392
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 90,169
<TOTAL-ASSETS> 108,446,518
<PAYABLE-FOR-SECURITIES> 11,593,889
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 11,593,889
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 96,380,098
<SHARES-COMMON-STOCK> 9,593,679
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (73)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 326,102
<NET-ASSETS> 96,706,127
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 451,689
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 451,689
<REALIZED-GAINS-CURRENT> (73)
<APPREC-INCREASE-CURRENT> 326,102
<NET-CHANGE-FROM-OPS> 777,718
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (451,689)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 96,250,028
<NUMBER-OF-SHARES-REDEEMED> (223,125)
<SHARES-REINVESTED> 353,195
<NET-CHANGE-IN-ASSETS> 96,706,127
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 54,235
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 173,688
<AVERAGE-NET-ASSETS> 60,701,770
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.08
<EXPENSE-RATIO> 0.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of CitiFunds Tax Free Income
Trust:
In planning and performing our audits of the financial
statements of CitiFunds California Tax Free Income Portfolio,
CitiFunds National Tax Free Income Portfolio, and CitiFunds New
York Tax Free Income Portfolio (the "Funds") (each a separate
series of CitiFunds Tax Free Income Trust) for the period ended
December 31, 1998 (on which we have issued our reports dated
February 8, 1999), we considered their internal control,
including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of
expressing our opinions on the financial statements and to
comply with the requirements of Form N-SAR, and not to provide
assurance on the Funds' internal control.
The management of the Funds is responsible for establishing and
maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in any internal control,
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of internal
control to future periods are subject to the risk that the
internal control may become inadequate because of changes in
conditions, or that the degree of compliance with policies or
procedures may deteriorate.
Our consideration of the Funds' internal control would not
necessarily disclose all matters in internal control that might
be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of one
or more of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by error
or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no
matters involving the Funds' internal control and their
operation, including controls for safeguarding securities that
we consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use of
management, the Boards of Trustees of the Funds, and the
Securities and Exchange Commission, and is not intended to be
and should not be used by anyone other than these specified
parties. Deloitte & Touche LLP
Boston, Massachusetts
8-Feb-99
