Investment objective & strategy
As of Dec. 22, 2025 · prospectusObjective. The fund seeks the highest level of income exempt from federal income taxes consistent with moderate price fluctuation.
Strategy. The fund normally invests at least 90% of its total assets in investment-grade municipal securities, which are securities rated in one of the four highest rating categories by at least one credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. The fund may invest up to 10% of its total assets in below investment-grade bonds, known as junk bonds, including those with the lowest credit ratings. Under normal conditions, the funds dollar-weighted average effective maturity will be three to ten years. There are no maturity limitations on individual securities. Normally, at least 80% of the funds income will be exempt from federal income taxes. However, up to 20% of the funds income could be … The fund normally invests at least 90% of its total assets in investment-grade municipal securities, which are securities rated in one of the four highest rating categories by at least one credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. The fund may invest up to 10% of its total assets in below investment-grade bonds, known as junk bonds, including those with the lowest credit ratings. Under normal conditions, the funds dollar-weighted average effective maturity will be three to ten years. There are no maturity limitations on individual securities. Normally, at least 80% of the funds income will be exempt from federal income taxes. However, up to 20% of the funds income could be derived from securities subject to the alternative minimum tax. Investment decisions generally reflect the portfolio managers outlook for interest rates and the economy, as well as the prices, yields, and credit quality of various securities in which the fund may invest. From time to time, the fund may invest a significant portion of its assets in sectors with special risks, such as health care, transportation, utilities, or private activity bonds.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| RESTRUCTURED-SER A1 | PRC | $54.39M | 1.23% |
| PUERTO RICO SALES TAX FING COR REGD ZCP OID B/E 0.00000000 | PRCGEN | $35.01M | 0.79% |
| MAIN STR NAT GA 4% 07/01/2052 MT | MAIUTL | $32.37M | 0.73% |
| RESTRUCTURED-SER A-2 | PRCGEN | $31.73M | 0.72% |
| Southeast Energy Authority, Alabama, Commodity Supply Revenue Bonds, Project 2, Series 2021B-1 | — | $30.25M | 0.69% |
| BLACK BELT ENERGY GAS VAR | BBEUTL | $30.16M | 0.68% |
| CHICAGO MIDWAY INTERNATIONAL AIRPORT | — | $30.02M | 0.68% |
| NEW YORK ST DORM AUTH ST PERSO NYSGEN 03/43 FIXED 5 | — | $27.37M | 0.62% |
| NY ST DORM DASNY PIT 17B 5.0% 02-15-35 | — | $24.05M | 0.54% |
| ARLNGTN VA IDA 5% MT | ARLMED | $23.28M | 0.53% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| T. Rowe Price Intermediate Municipal Income ETF · TAXE | 15% | 0.24% |
| T. Rowe Price Tax-Free Short-Intermediate Fund, Inc. · PRFSX, PATIX, TTSIX | 13% | 0.24% |
| T. Rowe Price Tax-Free Income Fund, Inc. · PRTAX, PATAX, TFILX | 8% | 0.35% |
Advisers
| Firm | Role |
|---|---|
| T. Rowe Price Associates, Inc. | Adviser |
Footnotes
- Expense ratio as of December 22, 2025, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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