UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04163
T. Rowe Price Tax-Free High Yield Fund, Inc.
(Exact name of registrant as specified
in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive
offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: February 29
Date of reporting
period: February 29, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
Tax-Free
Funds
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
Tax-Free
Funds
HIGHLIGHTS
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
T.
Rowe
Price’s
tax-free
bond
funds
posted
gains.
The
majority
of
the
funds
outperformed
their
respective
Bloomberg
benchmarks,
while
performance
versus
their
Lipper
peer
group
averages
was
more
mixed.
The
Tax-Exempt
Money
Fund
also
generated
positive
returns
but
lagged
its
Lipper
benchmark.
We
continued
to
favor
bonds
from
health
care
issuers,
particularly
those
with
strong
balance
sheets
and
effective
management
teams.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
The
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
Tax-Free
Funds
Market
Commentary
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
your
fund’s
fiscal
year,
the
12-month
period
ended
February 29,
2024,
as
the
U.S.
economy
remained
healthy
despite
tighter
monetary
policy.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
delivered
positive
results
even
though
there
were
headwinds
from
rising
longer-term
interest
rates.
The
S&P
500
Index,
Nasdaq
Composite
Index,
and
Dow
Jones
Industrial
Average
all
reached
record
highs
during
the
period.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Within
the
S&P
500,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns.
Meanwhile,
the
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
of
2023
and
produced
solid
results
in
the
second
half
of
the
period.
The
U.S.
economy
was
the
strongest
among
the
major
markets.
Jobs
growth
remained
solid
over
the
12-month
period,
helping
to
fuel
consumer
spending.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
half
of
2023,
but
earnings
rebounded
in
the
third
and
fourth
quarters.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation,
as
measured
by
the
consumer
price
index,
fell
from
6.0%
to
3.1%
by
the
end
of
the
period
but
remained
above
the
Federal
Reserve’s
long-term
2%
goal.
In
response
to
the
above-target
inflation
readings,
the
Fed
raised
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
but
then
held
rates
steady
over
the
remainder
of
the
period.
At
its
final
meeting
of
the
period,
in
late
January,
the
central
bank
removed
language
from
its
post-meeting
statement
that
pointed
to
additional
policy
tightening,
but
subsequent
communications
from
Fed
Chair
Jerome
Powell
in
February
indicated
that
policymakers
are
in
no
hurry
to
begin
cutting
rates.
U.S.
Treasury
yields
were
volatile
during
the
period
as
investors
adjusted
their
expectations
for
the
path
of
monetary
policy.
After
starting
the
period
at
3.92%,
the
benchmark
10-year
Treasury
note
yield
briefly
reached
5.00%
in
October
T.
ROWE
PRICE
Tax-Free
Funds
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
the
end
of
2023.
However,
more
hawkish
Fed
communications
in
early
2024
pressured
Treasury
bond
prices,
driving
the
10-year
yield
back
up
to
4.25%
by
period-end.
Municipal
bonds
outperformed
Treasuries
during
the
period,
supported
by
new
issuance
levels
that
remained
below
longer-term
averages.
The
sector
continued
to
see
outflows
in
2023
but
at
a
significantly
lower
level
than
in
2022.
Elsewhere
in
the
fixed
income
market,
high
yield
corporate
bonds
produced
strong
returns,
supported
by
the
higher
coupons
that
have
become
available
since
the
Fed
began
hiking
rates
about
two
years
ago
as
well
as
by
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely,
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Tax-Free
Funds
Management’s
Discussion
of
Fund
Performance
TAX-EXEMPT
MONEY
FUND
TAX-FREE
SHORT-INTERMEDIATE
FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide,
consistent
with
modest
price
fluctuation,
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
short-
and
intermediate-term
investment-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
Short-Intermediate
Fund
returned
3.85%
over
the
12
months
ended
February
29,
2024.
The
fund
outperformed
its
Bloomberg
benchmark
and
performed
in
line
with
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results
.)
PORTFOLIO
DIVERSIFICATION
Tax-Exempt
Money
Fund
Percent
of
Net
Assets
8/31/23
2/29/24
Health
Care
29.9%
28.6%
Education
13.5
14.3
Housing
9.6
14.2
General
Obligation-Local
14.7
12.6
Water
and
Sewer
6.4
5.9
General
Obligation-State
5.2
5.9
Electric
4.9
5.5
Transportation
5.0
4.1
Other
Assets
10.8
8.9
Total
100.0%
100.0%
Historical
weightings
reflect
current
industry/sector
classifications.
T.
ROWE
PRICE
Tax-Free
Funds
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Allocations
at
the
broad
sector
level
contributed,
lifted
by
an
overweight
to
revenue
bonds
and
underweights
to
general
obligation
(GO)
and
prerefunded
bonds.
The
GOs
we
owned
were
largely
from
lower-rated
issuers—including
Puerto
Rico,
Illinois,
and
New
Jersey—that
we
viewed
as
having
potential
credit
upside.
Selection
among
state
GO
bonds
aided
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Security
selection
among
revenue
bonds
further
added
to
relative
gains,
led
upward
by
selection
decisions
in
the
dedicated
tax,
hospital,
and
airport
revenue
subsectors.
Conversely,
selection
among
prepaid
gas
revenue
bonds
hindered
relative
performance.
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
Short-
Intermediate
Fund
–
.
2.63%
3.85%
Tax-Free
Short-
Intermediate
Fund–
.
Advisor
Class
2.45
3.33
Tax-Free
Short-
Intermediate
Fund–
.
I
Class
2.70
3.81
Bloomberg
1–5
Year
Blend
(1–6
Year
Maturity)
Index
2.64
3.71
Lipper
Short-Intermediate
Municipal
Debt
Funds
Average
2.88
3.89
T.
ROWE
PRICE
Tax-Free
Funds
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—
and
the
income
generated
by
municipal
bond
coupon
payments.
However,
positioning
across
key
rates
negated
some
relative
gains.
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocations
to
the
AAA
rating
bucket
increased
moderately,
while
its
allocation
to
the
BBB
rating
tier
decreased
slightly.
However,
we
maintained
a
structural
overweight
to
the
A
and
BBB
quality
tiers,
as
we
continued
to
believe
that
the
lower
end
of
the
investment-grade
spectrum
provides
ample
opportunities
to
earn
additional
risk-
adjusted
yield
over
time.
We
also
maintained
an
overweight
to
the
nonrated
tier,
where
we
believe
that
rigorous
credit
research
can
uncover
mispriced
or
overlooked
bonds.
Sources:
Credit
ratings
for
the
securities
held
in
the
fund
are
provided
by
Moody’s,
Standard
&
Poor’s,
and
Fitch
and
are
converted
to
the
Standard
&
Poor’s
nomenclature.
A
rating
of
AAA
represents
the
highest-
rated
securities,
and
a
rating
of
D
represents
the
lowest-
rated
securities.
If
the
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
Short-Intermediate
Fund
T.
ROWE
PRICE
Tax-Free
Funds
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
neutral
to
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
We
continued
to
migrate
away
from
bonds
with
shorter
call
provisions
as
well
as
into
lower
coupon
structures
in
an
attempt
to
improve
the
fund’s
ability
to
benefit
from
future
declines
in
municipal
bond
yields.
Our
structural,
out-of-benchmark
allocation
to
bonds
maturing
in
seven
to
10
years
or
more
remained
in
place.
Regarding
the
fund’s
positioning
across
sectors,
health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—remained
a
prominent
overweight
allocation.
Our
allocation
to
hospital
revenue
bonds
modestly
increased
over
the
period
as
encouraging
trends
in
fundamentals
bolstered
our
view
on
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
Meanwhile,
the
fund’s
allocation
to
life
care
community
revenue
bonds
ended
the
year
roughly
flat.
We
maintain
sanguine
views
on
the
names
we
hold
but
are
cautious
toward
the
subsector
overall
due
to
changing
consumer
demand
and
increased
competition
from
for-profit
operators.
As
always,
we
continue
to
closely
monitor
our
investments
in
these
facilities,
favoring
names
with
strong
financial
metrics,
geographic
diversification,
and
skilled
management
teams.
Within
the
fund’s
allocation
to
GOs,
we
sold
a
state
GO
from
California
as
our
outlook
on
the
state
became
less
constructive
late
in
the
period.
Specifically,
the
state’s
projected
budget
deficit
through
its
fiscal
year
2025
outweighs
the
funds
held
in
its
general
purpose
reserves
by
a
wide
margin.
This
development,
coupled
with
projected
deficits
beyond
this
time
window
and
our
view
that
California
has
less
budget-cutting
levers
to
pull
than
it
has
in
the
past,
weighed
on
our
outlook,
particularly
when
considering
how
the
state
may
fare
in
future
recessionary
conditions.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
T.
ROWE
PRICE
Tax-Free
Funds
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
TAX-FREE
INCOME
FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
long-term
investment-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
Income
Fund
returned
6.16%
over
the
12
months
ended
February
29,
2024,
and
outperformed
its
Bloomberg
benchmark
along
with
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied
modestly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results.
)
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
Income
Fund
–
.
4.97%
6.16%
Tax-Free
Income
Fund–
.
Advisor
Class
4.79
5.80
Tax-Free
Income
Fund–
.
I
Class
4.89
6.11
Bloomberg
Municipal
Bond
Index
4.33
5.42
Lipper
General
&
Insured
Municipal
Debt
Funds
Average
4.65
5.80
T.
ROWE
PRICE
Tax-Free
Funds
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Security
selection
among
revenue
bonds
helped
relative
performance,
led
upward
by
selection
decisions
in
the
dedicated
tax,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
subsectors.
Selection
among
state
general
obligation
(GO)
bonds—and,
to
a
lesser
extent,
local
GOs—also
aided
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Conversely,
selection
among
public
power
and
transportation
revenue
bonds
related
to
various
transportation
authorities
and
marinas
hindered
relative
performance.
Allocation
decisions
within
the
revenue-backed
sector
were
constructive
in
aggregate.
Overweights
to
life
care
communities,
hospitals,
and
transportation
revenue
bonds
contributed,
as
did
an
underweight
to
the
water/sewer
revenue
subsector.
Allocations
at
the
broad
sector
level
further
added
to
relative
gains,
lifted
by
an
overweight
to
revenue
bonds
and
an
underweight
to
GO
bonds.
However,
an
underweight
to
housing
revenue
bonds
negated
some
relative
gains.
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—and
the
income
generated
by
municipal
bond
coupon
payments.
Positioning
across
key
rates
hampered
relative
performance.
Specifically,
modest
overweights
to
longer-maturity
bonds
detracted
as
the
long
end
was
the
only
portion
of
the
municipal
yield
curve
to
end
the
period
slightly
higher.
T.
ROWE
PRICE
Tax-Free
Funds
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocations
to
the
AAA
and
AA
rating
buckets
increased
modestly,
while
its
allocation
to
the
A
rating
tier
decreased
slightly.
That
said,
the
BBB
and
A
quality
tiers
continued
to
represent
strategic
overweights
for
the
fund,
as
we
continued
to
believe
that
these
segments
offer
ample
opportunities
to
earn
additional
risk-adjusted
yield
over
time.
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
above
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
The
fund’s
allocation
to
municipal
bonds
maturing
in
20
years
or
more
increased
over
the
period
as
valuations
screened
attractively
in
the
long
end
of
the
curve.
Regarding
the
fund’s
positioning
across
sectors,
health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—remained
a
prominent
overweight
allocation.
However,
we
modestly
reduced
our
allocation
to
hospital
and
life
care
revenue
bonds
over
the
period
alongside
headwinds
from
staffing
shortages
and
inflationary
pressures
on
labor
and
medical
supply
costs.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
Sources:
Credit
ratings
for
the
securities
held
in
the
fund
are
provided
by
Moody’s,
Standard
&
Poor’s,
and
Fitch
and
are
converted
to
the
Standard
&
Poor’s
nomenclature.
A
rating
of
AAA
represents
the
highest-
rated
securities,
and
a
rating
of
D
represents
the
lowest-
rated
securities.
If
the
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
Income
Fund
T.
ROWE
PRICE
Tax-Free
Funds
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
The
fund’s
allocation
to
housing
revenue
bonds
increased
over
the
period,
largely
due
to
our
investments
in
planned
amortization
class
(PAC)
bonds.
While
PAC
bonds
have
long-stated
maturities—typically
around
30
years—
their
effective
maturities
are
generally
around
five
years
since
they
pay
down
according
to
a
defined
schedule
of
principal
payments,
which
is
guaranteed
within
a
specified
range
of
prepayment
speeds.
PAC
bonds
offer
a
credit
spread
and
yield
pickup
relative
to
other
highly
rated
bonds
in
the
front
end
of
the
curve
and,
therefore,
have
provided
attractive
investment
opportunities,
in
our
view.
(Municipal
bond
credit
spreads
are
a
measure
of
the
additional
yield
offered
by
bonds
that
have
additional
credit
risk
relative
to
comparable
AAA
rated
municipal
bonds.)
Conversely,
the
fund’s
allocation
to
the
airport
revenue
subsector
ended
the
period
lower.
In
our
view,
the
airport
revenue
subsector
has
continued
to
show
resilience
as
enplanements
fully
recovered
from
the
pandemic-induced
drawdown.
However,
airports
no
longer
screened
attractively
relative
to
other
A
rated
sectors.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
T.
ROWE
PRICE
Tax-Free
Funds
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
TAX-FREE
HIGH
YIELD FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
long-term
low-
to
upper-medium-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
High
Yield
Fund
returned
7.05%
for
the
12
months
ended
February
29,
2024,
outperforming
its
Bloomberg
benchmark
and
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied
modestly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
High
Yield
Fund
–
.
5.67%
7.05%
Tax-Free
High
Yield
Fund–
.
Advisor
Class
5.36
6.65
Tax-Free
High
Yield
Fund–
.
I
Class
5.64
7.07
Bloomberg
65%
High-
Grade/35%
High-Yield
Index
4.86
6.42
Lipper
High
Yield
Municipal
Debt
Funds
Average
5.55
6.74
T.
ROWE
PRICE
Tax-Free
Funds
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Security
selection
among
state
and
local
general
obligation
(GO)
bonds
helped
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Selection
among
revenue
bonds
further
added
to
relative
gains,
led
upward
by
selection
decisions
in
the
dedicated
tax,
ground
transportation,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
(IDR/PCR)
subsectors.
Selection
within
the
public
power
revenue
subsector
negated
some
relative
gains,
dragged
down
by
holdings
of
bonds
issued
by
Puerto
Rico
Electric
Power
Authority
(PREPA).
The
bonds
depreciated
substantially
near
the
end
of
June
2023
after
the
bankruptcy
judge
ruled
that
bondholder
claims
were
limited
to
around
30%
of
outstanding
defaulted
PREPA
revenue
bond
principal
value,
which
was
well
below
market
expectations.
The
situation
is
still
evolving,
and
we
continue
to
evaluate
and
monitor
any
PREPA-related
developments
closely.
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—and
the
income
generated
by
municipal
bond
coupon
payments.
Positioning
across
key
rates
hampered
relative
performance.
Specifically,
modest
overweights
to
longer-maturity
bonds
detracted
as
the
long
end
was
the
only
portion
of
the
municipal
yield
curve
to
end
the
period
slightly
higher.
Allocations
at
the
broad
sector
level
were
constructive
in
aggregate,
aided
by
an
overweight
to
revenue
bonds
and
an
underweight
to
GO
bonds.
Allocation
decisions
within
the
revenue-backed
sector
further
added
to
relative
gains.
Underweights
to
housing,
water/sewer,
higher
education,
and
public
power
revenue
bonds
contributed,
while
an
underweight
to
dedicated
tax
and
an
overweight
to
life
care
community
revenue
bonds
hindered
relative
performance.
T.
ROWE
PRICE
Tax-Free
Funds
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocation
to
the
BB
rating
bucket
increased
modestly,
while
its
allocations
to
the
A
and
B
rating
tiers
decreased
slightly.
The
BBB
and
BB
rating
categories
remained
key
overweight
exposures
for
the
fund,
as
we
continued
to
believe
that
these
lower-quality
segments
present
ample
opportunities
to
uncover
additional
risk-adjusted
yield
through
diligent,
bottom-up
credit
analysis.
We
also
maintained
an
overweight
to
the
nonrated
tier,
where
we
believe
that
rigorous
credit
research
can
uncover
mispriced
or
overlooked
bonds.
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
above
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
The
fund’s
allocation
to
bonds
maturing
in
20
years
or
more
remained
a
significant
overweight
relative
to
the
benchmark.
Regarding
the
fund’s
positioning
across
sectors,
we
continued
to
overweight
the
IDR/PCR
subsector,
and
our
allocation
to
the
sector
ended
the
period
slightly
higher.
In
addition
to
offering
above-average
yields,
we
believe
this
area
of
the
market
provides
diversification
benefits
for
municipal
investors
due
to
its
corporate-backed
nature.
When
approaching
potential
investments
in
this
Sources:
Credit
ratings
for
the
securities
held
in
the
fund
are
provided
by
Moody’s,
Standard
&
Poor’s,
and
Fitch
and
are
converted
to
the
Standard
&
Poor’s
nomenclature.
A
rating
of
AAA
represents
the
highest-
rated
securities,
and
a
rating
of
D
represents
the
lowest-
rated
securities.
If
the
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
High
Yield
Fund
T.
ROWE
PRICE
Tax-Free
Funds
subsector,
we
frequently
exchange
research
insights
with
T.
Rowe
Price’s
taxable
fixed
income
and
equity
analysts
in
an
effort
to
deepen
our
understanding
of
the
bonds’
underlying
guarantors
while
aiming
to
avoid
the
most
speculative
projects
in
the
space.
Among
corporate-backed
market
segments,
we
continued
to
favor
prepaid
gas
revenue
bonds.
The
fund
continued
to
have
a
modest
allocation
to
tobacco-securitized
bonds.
However,
we
remain
cautious
on
the
sector
over
the
long
run
based
on
our
view
that
many
of
these
issuers
face
fundamental
credit
challenges
and
substantial
regulatory
headwinds.
Among
tobacco-securitized
credits,
we
maintain
a
strong
preference
for
comparatively
higher-quality
deal
structures
that,
in
our
assessment,
are
fundamentally
sound
in
nature.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
T.
ROWE
PRICE
Tax-Free
Funds
INTERMEDIATE
TAX-FREE
HIGH
YIELD FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Intermediate
Tax-Free
High
Yield
Fund
returned
5.39%
for
the
12
months
ended
February
29,
2024.
The
fund
performed
in
line
with
its
Bloomberg
benchmark
but
underperformed
the
average
return
of
its
Lipper
peer
group,
which
encompasses
funds
with
much
longer
maturity
and
duration
constraints.
(Results
for
I
Class
shares
varied,
reflecting
their
different
fee
structure.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-
rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-
grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Intermediate
Tax-Free
High
Yield
Fund
–
.
3.99%
5.39%
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
4.01
5.55
Bloomberg
65%
High-
Grade/35%
High-Yield
Intermediate
Competitive
(1–17
Year
Maturity)
Index
3.96
5.40
Lipper
High
Yield
Municipal
Debt
Funds
Average
5.55
6.74
T.
ROWE
PRICE
Tax-Free
Funds
Selection
among
revenue
bonds
helped
relative
performance,
led
upward
by
selection
decisions
in
the
dedicated
tax,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
(IDR/PCR)
subsectors.
Selection
among
state
and
local
general
obligation
(GO)
bonds
further
added
to
relative
gains.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
Selection
within
the
public
power
revenue
subsector
negated
some
relative
gains,
dragged
down
by
holdings
of
bonds
issued
by
Puerto
Rico
Electric
Power
Authority
(PREPA).
The
bonds
depreciated
substantially
near
the
end
of
June
2023
after
the
bankruptcy
judge
ruled
that
bondholder
claims
were
limited
to
around
30%
of
outstanding
defaulted
PREPA
revenue
bond
principal
value,
which
was
well
below
market
expectations.
The
situation
is
still
evolving,
and
we
continue
to
evaluate
and
monitor
any
PREPA-related
developments
closely.
Allocations
within
the
revenue-backed
sector
hindered
relative
performance,
dragged
lower
by
overweights
to
hospital
and
IDR/PCR
bonds
and
an
underweight
to
the
dedicated
tax
revenue
subsector.
Conversely,
overweights
to
student
housing
and
life
care
community
revenue
bonds
and
underweights
to
the
higher
education
and
public
power
revenue
subsectors
contributed.
Allocations
at
the
broad
sector
level
had
a
neutral
impact
on
relative
performance.
Interest
rate
management
detracted
modestly
in
aggregate.
The
portfolio’s
shorter-than-benchmark
average-duration
profile
detracted
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve.
Positioning
across
key
rates
also
hampered
relative
performance,
while
the
income
generated
by
municipal
bond
coupon
payments
made
up
for
some
relative
losses.
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations.
The
fund’s
overall
credit
quality
ticked
upward
from
BBB
to
BBB+
over
the
year
as
we
decreased
its
allocation
to
the
B
rating
tier
in
favor
of
BBB
and
BB
bonds,
which
remain
key
overweight
exposures
for
the
fund.
We
also
continued
to
overweight
the
nonrated
tier,
where
we
believe
that
our
research
strengths
can
enable
us
to
take
advantage
of
credits
that
have
been
mispriced
or
overlooked
by
investors.
T.
ROWE
PRICE
Tax-Free
Funds
In
terms
of
interest
rate
management,
the
fund’s
duration
declined
and
ended
the
period
below
the
benchmark’s
duration.
This
change
in
duration
posture
was
partly
a
result
of
a
decrease
in
the
fund’s
allocation
to
bonds
maturing
in
10
to
20
years
and
an
increase
in
bonds
maturing
within
three
years.
Regarding
the
fund’s
positioning
across
sectors,
we
continued
to
overweight
the
IDR/PCR
subsector,
although
our
allocation
to
the
sector
ended
the
period
slightly
lower.
In
addition
to
offering
above-average
yields,
we
believe
this
area
of
the
market
provides
diversification
benefits
for
municipal
investors
due
to
its
corporate-backed
nature.
When
approaching
potential
investments
in
this
subsector,
we
frequently
exchange
research
insights
with
T.
Rowe
Price’s
taxable
fixed
income
and
equity
analysts
in
an
effort
to
deepen
our
understanding
of
the
bonds’
underlying
guarantors
while
aiming
to
avoid
the
most
speculative
projects
in
the
space.
Health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—
remained
a
prominent
overweight
allocation.
However,
we
reduced
our
allocation
to
hospital
revenue
bonds
and
life
care
revenue
bonds
over
the
period
alongside
headwinds
from
staffing
shortages
and
inflationary
pressures
on
labor
and
medical
supply
costs.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
Sources:
Credit
ratings
for
the
securities
held
in
the
fund
are
provided
by
Moody’s,
Standard
&
Poor’s,
and
Fitch
and
are
converted
to
the
Standard
&
Poor’s
nomenclature.
A
rating
of
AAA
represents
the
highest-
rated
securities,
and
a
rating
of
D
represents
the
lowest-
rated
securities.
If
the
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Intermediate
Tax-Free
High
Yield
Fund
T.
ROWE
PRICE
Tax-Free
Funds
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Tax-Free
Funds
RISKS
OF
INVESTING
IN
THE
TAX-EXEMPT
MONEY
FUND
You
could
lose
money
by
investing
in
the
Fund.
Although
the
Fund
seeks
to
preserve
the
value
of
your
investment
at
$1.00
per
share,
it
cannot
guarantee
it
will
do
so.
The
Fund
may
impose
a
fee
upon
the
sale
of
your
shares
or
may
temporarily
suspend
your
ability
to
sell
shares
if
the
Fund’s
liquidity
falls
below
required
minimums
because
of
market
conditions
or
other
factors.
An
investment
in
the
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund’s
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund,
and
you
should
not
expect
that
the
sponsor
will
provide
financial
support
to
the
Fund
at
any
time.
RISKS
OF
INVESTING
IN
FIXED
INCOME
SECURITIES
Bonds
are
subject
to
interest
rate
risk
(the
decline
in
bond
prices
that
usually
accompanies
a
rise
in
interest
rates)
and
credit
risk
(the
chance
that
any
fund
holding
could
have
its
credit
rating
downgraded
or
that
a
bond
issuer
will
default
by
failing
to
make
timely
payments
of
interest
or
principal),
potentially
reducing
the
fund’s
income
level
and
share
price.
Investments
in
high
yield
bonds
involve
greater
risk
of
price
volatility,
illiquidity,
and
default
than
higher-rated
debt
securities.
Municipal
bond
funds
may
be
highly
impacted
by
events
tied
to
the
overall
municipal
securities
markets,
including
unfavorable
legislative
or
political
developments
and
adverse
changes
in
the
financial
conditions
of
municipal
bond
issuers
and
the
economy.
Some
income
may
be
subject
to
state
and
local
taxes
and
the
federal
alternative
minimum
tax.
BENCHMARK
INFORMATION
Note:
Bloomberg
®
and
Bloomberg
1–5
Year
Blend
(1–6
Year
Maturity)
Index,
Bloomberg
Municipal
Bond
Index,
Bloomberg
65%
High-Grade/35%
High-
Yield
Index,
and
Bloomberg
65%
High-Grade/35%
High-Yield
Intermediate
Competitive
(1–17
Year
Maturity)
Index
are
service
marks
of
Bloomberg
Finance
L.P.
and
its
affiliates,
including
Bloomberg
Index
Services
Limited
(“BISL”),
the
administrator
of
the
index
(collectively,
“Bloomberg”)
and
have
been
licensed
for
use
for
certain
purposes
by
T.
Rowe
Price.
Bloomberg
is
not
affiliated
with
T.
Rowe
Price,
and
Bloomberg
does
not
approve,
endorse,
review,
or
recommend
its
products.
Bloomberg
does
not
guarantee
the
timeliness,
accurateness,
or
completeness
of
any
data
or
information
relating
to
its
products.
Note:
Copyright
©
2024
Fitch
Ratings,
Inc.,
Fitch
Ratings
Ltd.
and
its
subsidiaries.
T.
ROWE
PRICE
Tax-Free
Funds
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
Note:
©
2024,
Moody’s
Corporation,
Moody’s
Investors
Service,
Inc.,
Moody’s
Analytics,
Inc.
and/or
their
licensors
and
affiliates
(collectively,
“Moody’s”).
All
rights
reserved.
Moody’s
ratings
and
other
information
(“Moody’s
Information”)
are
proprietary
to
Moody’s
and/or
its
licensors
and
are
protected
by
copyright
and
other
intellectual
property
laws.
Moody’s
Information
is
licensed
to
Client
by
Moody’s.
MOODY’S
INFORMATION
MAY
NOT
BE
COPIED
OR
OTHERWISE
REPRODUCED,
REPACKAGED,
FURTHER
TRANSMITTED,
TRANSFERRED,
DISSEMINATED,
REDISTRIBUTED
OR
RESOLD,
OR
STORED
FOR
SUBSEQUENT
USE
FOR
ANY
SUCH
PURPOSE,
IN
WHOLE
OR
IN
PART,
IN
ANY
FORM
OR
MANNER
OR
BY
ANY
MEANS
WHATSOEVER,
BY
ANY
PERSON
WITHOUT
MOODY’S
PRIOR
WRITTEN
CONSENT.
Moody's
®
is
a
registered
trademark.
Note:
Copyright
©
2024,
S&P
Global
Market
Intelligence
(and
its
affiliates,
as
applicable).
Reproduction
of
any
information,
data
or
material,
including
ratings
(“Content”)
in
any
form
is
prohibited
except
with
the
prior
written
permission
of
the
relevant
party. Such
party,
its
affiliates
and
suppliers
(“Content
Providers”)
do
not
guarantee
the
accuracy,
adequacy,
completeness,
timeliness
or
availability
of
any
Content
and
are
not
responsible
for
any
errors
or
omissions
(negligent
or
otherwise),
regardless
of
the
cause,
or
for
the
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from
the
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Content.
In
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Content
Providers
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for
any
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or
losses
(including
lost
income
or
lost
profit
and
opportunity
costs)
in
connection
with
any
use
of
the
Content.
A
reference
to
a
particular
investment
or
security,
a
rating
or
any
observation
concerning
an
investment
that
is
part
of
the
Content
is
not
a
recommendation
to
buy,
sell
or
hold
such
investment
or
security,
does
not
address
the
appropriateness
of
an
investment
or
security
and
should
not
be
relied
on
as
investment
advice.
Credit
ratings
are
statements
of
opinions
and
are
not
statements
of
fact.
BENCHMARK
INFORMATION
(continued)
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
SHORT-INTERMEDIATE
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
INCOME
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
HIGH
YIELD
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
INTERMEDIATE
TAX-FREE
HIGH
YIELD
FUND
Note:
Performance
for
the I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
*The
Lipper
data
are
from
7/31/14.
T.
ROWE
PRICE
Tax-Free
Funds
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
Periods
Ended
2/29/24
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Tax-Free
Short-
Intermediate
Fund
–
.
3.85%
1.19%
1.13%
–
–
Tax-Free
Short-
Intermediate
Fund–
.
Advisor
Class
3.33
0.85
0.79
–
–
Tax-Free
Short-
Intermediate
Fund–
.
I
Class
3.81
1.31
–
1.51%
11/29/16
..
Tax-Free
Income
Fund
–
.
6.16
1.96
2.68
–
–
Tax-Free
Income
Fund–
.
Advisor
Class
5.80
1.63
2.33
–
–
Tax-Free
Income
Fund–
.
I
Class
6.11
2.01
–
2.09
7/6/17
..
Tax-Free
High
Yield
Fund
–
.
7.05
2.04
3.40
–
–
Tax-Free
High
Yield
Fund–
.
Advisor
Class
6.65
1.71
3.12
–
–
Tax-Free
High
Yield
Fund–
.
I
Class
7.07
2.14
–
2.82
11/29/16
..
Intermediate
Tax-Free
High
Yield
Fund
–
.
5.39
1.82
–
2.59
7/24/14
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
5.55
1.87
–
2.19
7/6/17
..
This
table
shows
how
the
funds
would
have
performed
each
year
if
their
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
Past
performance
cannot
guarantee
future
results.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
T.
ROWE
PRICE
Tax-Free
Funds
EXPENSE
RATIOS
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
Intermediate
Tax-Free
High
Yield
Fund,
Tax-Free
High
Yield
Fund,
Tax-Free
Income
Fund,
and
Tax-Free
Short-Intermediate
Fund have
three
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
the
Advisor
Class
shares
are
offered
only
through
unaffiliated
brokers
and
other
financial
intermediaries
and
charge
a
0.25%
12b-1
fee,
and
the
I
Class
shares
are
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
The
Tax-Exempt
Money
Fund
has
two
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
and
the
I
Class
shares
are
also
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Tax-Free
Short-Intermediate
Fund
0.52%
Tax-Free
Short-Intermediate
Fund–Advisor
Class
0.77
Tax-Free
Short-Intermediate
Fund–I
Class
0.37
Tax-Free
Income
Fund
0.59
Tax-Free
Income
Fund–Advisor
Class
0.86
Tax-Free
Income
Fund–I
Class
0.47
Tax-Free
High
Yield
Fund
0.77
Tax-Free
High
Yield
Fund–Advisor
Class
1.03
Tax-Free
High
Yield
Fund–I
Class
0.63
Intermediate
Tax-Free
High
Yield
Fund
1.02
Intermediate
Tax-Free
High
Yield
Fund–I
Class
0.84
The
expense
ratios
shown
are
as
of
the
funds’
most
recent
prospectus.
These
numbers
may
vary
from
the
expense
ratios
shown
elsewhere
in
this
report
because
they
are
based
on
a
different
time
period
and,
if
applicable,
include
acquired
fund
fees
and
expenses
but
do
not
include
fee
or
expense
waivers.
T.
ROWE
PRICE
Tax-Free
Funds
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is
based
on
hypothetical
account
values
and
expenses
derived
from
the
fund’s
actual
expense
ratio
and
an
assumed
5%
per
year
rate
of
return
before
expenses
(not
the
fund’s
actual
return).
You
may
compare
the
ongoing
costs
of
investing
in
the
fund
with
other
funds
by
contrasting
this
5%
hypothetical
example
and
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
Note:
T.
Rowe
Price
charges
an
annual
account
service
fee
of
$20,
generally
for
accounts
with
less
than
$10,000.
The
fee
is
waived
for
any
investor
whose
T.
Rowe
Price
mutual
fund
accounts
total
$50,000
or
more;
accounts
electing
to
receive
electronic
delivery
of
account
statements,
transaction
confirmations,
prospectuses,
and
shareholder
reports;
or
accounts
of
an
investor
who
is
a
T.
Rowe
Price
Personal
Services
or
Enhanced
Personal
Services
client
(enrollment
in
these
programs
generally
requires
T.
Rowe
Price
assets
of
at
least
$250,000).
This
fee
is
not
included
in
the
accompanying
table.
If
you
are
subject
to
the
fee,
keep
it
in
mind
when
you
are
estimating
the
ongoing
expenses
of
investing
in
the
fund
and
when
comparing
the
expenses
of
this
fund
with
other
funds.
You
should
also
be
aware
that
the
expenses
shown
in
the
table
highlight
only
your
ongoing
costs
and
do
not
reflect
any
transaction
costs,
such
as
redemption
fees
or
sales
loads.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
To
the
extent
a
fund
charges
transaction
costs,
however,
the
total
cost
of
owning
that
fund
is
higher.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-EXEMPT
MONEY
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,015.80
$2.05
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.82
2.06
I
Class
Actual
1,000.00
1,016.60
1.20
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.67
1.21
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.41%,
and
the
2
I Class
was
0.24%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
SHORT-INTERMEDIATE
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,026.30
$2.62
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.28
2.61
Advisor
Class
Actual
1,000.00
1,024.50
4.38
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,020.54
4.37
I
Class
Actual
1,000.00
1,027.00
1.86
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.02
1.86
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.52%,
the
2
Advisor Class
was
0.87%,
and
the
3
I Class
was
0.37%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
INCOME
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,049.70
$2.70
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.23
2.66
Advisor
Class
Actual
1,000.00
1,047.90
4.43
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,020.54
4.37
I
Class
Actual
1,000.00
1,048.90
2.39
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.53
2.36
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.53%,
the
2
Advisor Class
was
0.87%,
and
the
3
I Class
was
0.47%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
HIGH
YIELD
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,056.70
$3.43
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,021.53
3.37
Advisor
Class
Actual
1,000.00
1,053.60
5.26
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,019.74
5.17
I
Class
Actual
1,000.00
1,056.40
2.81
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.13
2.77
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.67%,
the
2
Advisor Class
was
1.03%,
and
the
3
I Class
was
0.55%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
INTERMEDIATE
TAX-FREE
HIGH
YIELD
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,039.90
$2.33
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.58
2.31
I
Class
Actual
1,000.00
1,040.10
2.13
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.77
2.11
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.46%,
and
the
3
I Class
was
0.42%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
QUARTER-END
RETURNS
Periods
Ended
12/31/23
......
1
Year
....
5
Years
....
10
Years
Since
Inception
Inception
Date
Tax-Free
Short-Intermediate
Fund
–
.
3.95%
1.39%
1.24%
–
–
Tax-Free
Short-Intermediate
Fund–
.
Advisor
Class
3.48
1.05
0.90
–
–
Tax-Free
Short-Intermediate
Fund–
.
I
Class
3.90
1.51
–
1.54%
11/29/16
Tax-Free
Income
Fund
–
.
7.01
2.16
3.03
–
–
Tax-Free
Income
Fund–
.
Advisor
Class
6.66
1.81
2.69
–
–
Tax-Free
Income
Fund–
.
I
Class
7.07
2.23
–
2.16
7/6/17
Tax-Free
High
Yield
Fund
–
.
7.02
2.03
3.75
–
–
Tax-Free
High
Yield
Fund–
.
Advisor
Class
6.75
1.72
3.48
–
–
Tax-Free
High
Yield
Fund–
.
I
Class
7.15
2.14
–
2.70
11/29/16
Intermediate
Tax-Free
High
Yield
Fund
–
.
5.33
1.93
–
2.55
7/24/14
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
5.38
1.97
–
2.10
7/6/17
The
funds’
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Share
price,
principal
value,
yield,
and
return
will
vary,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1-800-225-5132
or,
for
2
Advisor
and
3
I
Class
shares,
1-800-638-8790.
This
table
provides
returns
net
of
expenses
through
the
most
recent
calendar
quarter-end
rather
than
through
the
end
of
the
funds’
fiscal
period. It
shows
how
the
funds
would
have
performed
each
year
if
their
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
A
money
fund’s
yield
more
closely
represents
its
current
earnings
than
does
the
total
return.
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
202404-3377836
C03-050
4/24
Annual
Report
|
Financial
Statements
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRFHX
Tax-Free
High
Yield
Fund
–
.
PATFX
Tax-Free
High
Yield
Fund–
.
Advisor
Class
PTYIX
Tax-Free
High
Yield
Fund–
.
I Class
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
10.64
$
12.22
$
12.32
$
12.67
$
11.81
Investment
activities
Net
investment
income
(1)(2)
0.41
0.41
0.38
0.41
0.44
Net
realized
and
unrealized
gain/
loss
0.32
(1.58)
(0.10)
(0.34)
0.86
Total
from
investment
activities
0.73
(1.17)
0.28
0.07
1.30
Distributions
Net
investment
income
(0.40)
(0.40)
(0.38)
(0.41)
(0.44)
Net
realized
gain
—
(0.01)
—
(0.01)
—
Total
distributions
(0.40)
(0.41)
(0.38)
(0.42)
(0.44)
NET
ASSET
VALUE
End
of
period
$
10.97
$
10.64
$
12.22
$
12.32
$
12.67
Ratios/Supplemental
Data
Total
return
(2)(3)
7.05%
(9.64)%
2.21%
0.70%
11.14%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.76%
0.76%
0.72%
0.72%
0.72%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.67%
0.67%
0.63%
0.62%
0.65%
Net
investment
income
3.81%
3.68%
2.99%
3.48%
3.56%
Portfolio
turnover
rate
11.6%
19.7%
11.8%
12.8%
5.1%
Net
assets,
end
of
period
(in
millions)
$1,826
$1,949
$3,580
$3,915
$4,421
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Advisor
Class
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
10.70
$
12.29
$
12.39
$
12.74
$
11.88
Investment
activities
Net
investment
income
(1)(2)
0.37
0.38
0.35
0.39
0.40
Net
realized
and
unrealized
gain/
loss
0.32
(1.59)
(0.11)
(0.35)
0.85
Total
from
investment
activities
0.69
(1.21)
0.24
0.04
1.25
Distributions
Net
investment
income
(0.36)
(0.37)
(0.34)
(0.38)
(0.39)
Net
realized
gain
—
(0.01)
—
(0.01)
—
Total
distributions
(0.36)
(0.38)
(0.34)
(0.39)
(0.39)
NET
ASSET
VALUE
End
of
period
$
11.03
$
10.70
$
12.29
$
12.39
$
12.74
Ratios/Supplemental
Data
Total
return
(2)(3)
6.65%
(9.89)%
1.90%
0.41%
10.70%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
1.12%
1.03%
1.03%
1.02%
1.03%
Net
expenses
after
waivers/
payments
by
Price
Associates
1.02%
0.93%
0.94%
0.92%
0.98%
Net
investment
income
3.46%
3.43%
2.76%
3.27%
3.25%
Portfolio
turnover
rate
11.6%
19.7%
11.8%
12.8%
5.1%
Net
assets,
end
of
period
(in
thousands)
$4,552
$5,322
$7,637
$9,310
$15,243
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
10.64
$
12.22
$
12.31
$
12.67
$
11.81
Investment
activities
Net
investment
income
(1)(2)
0.42
0.42
0.39
0.43
0.45
Net
realized
and
unrealized
gain/
loss
0.31
(1.58)
(0.09)
(0.36)
0.86
Total
from
investment
activities
0.73
(1.16)
0.30
0.07
1.31
Distributions
Net
investment
income
(0.41)
(0.41)
(0.39)
(0.42)
(0.45)
Net
realized
gain
—
(0.01)
—
(0.01)
—
Total
distributions
(0.41)
(0.42)
(0.39)
(0.43)
(0.45)
NET
ASSET
VALUE
End
of
period
$
10.96
$
10.64
$
12.22
$
12.31
$
12.67
Ratios/Supplemental
Data
Total
return
(2)(3)
7.07%
(9.51)%
2.41%
0.71%
11.24%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.65%
0.62%
0.60%
0.62%
0.63%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.55%
0.53%
0.51%
0.52%
0.56%
Net
investment
income
3.93%
3.84%
3.10%
3.57%
3.65%
Portfolio
turnover
rate
11.6%
19.7%
11.8%
12.8%
5.1%
Net
assets,
end
of
period
(in
thousands)
$1,508,922
$1,846,303
$1,942,439
$1,072,180
$1,344,330
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
February
29,
2024
Portfolio
of
Investments
‡
Par/Shares
$
Value
(Amounts
in
000s)
‡
COMMON
STOCKS
0.0%
Ingevity
(1)
1
37
United
Airlines
Holdings
(1)
—
14
Westrock
5
219
Total
Common
Stocks
(Cost
$200)
270
MUNICIPAL
SECURITIES
99.3%
ALABAMA
1.7%
Black
Belt
Energy
Gas
Dist.,
Series A,
VRDN,
5.25%,
1/1/54
(Tender
10/1/30)
6,400
6,816
Black
Belt
Energy
Gas
Dist.,
Series B,
VRDN,
5.25%,
12/1/53
(Tender
12/1/30)
2,210
2,395
Black
Belt
Energy
Gas
Dist.,
Series C-1,
VRDN,
5.25%,
2/1/53
(Tender
6/1/29)
10,610
11,181
Huntsville-Redstone
Village
Special
Care
Fac.
Fin.
Auth.,
5.50%,
1/1/28
(1)(2)
2,925
1,667
Huntsville-Redstone
Village
Special
Care
Fac.
Fin.
Auth.,
5.50%,
1/1/43
(1)(2)
2,265
1,291
Huntsville-Redstone
Village
Special
Care
Fac.
Fin.
Auth.,
Series A,
6.875%,
1/1/43
(1)(2)
1,585
903
Huntsville-Redstone
Village
Special
Care
Fac.
Fin.
Auth.,
Series A,
7.50%,
1/1/47
(1)(2)
2,835
1,616
Jefferson
County,
Sewer
Revenue,
5.50%,
10/1/53
2,625
2,865
Southeast
Energy
Auth.
A
Cooperative
Dist.,
Series A,
VRDN,
4.00%,
11/1/51
(Tender
10/1/28)
3,790
3,781
Southeast
Energy
Auth.
A
Cooperative
Dist.,
Series B,
VRDN,
4.00%,
12/1/51
(Tender
12/1/31)
5,160
5,184
Tuscaloosa
County
IDA,
Hunt
Refining
Project,
Series A,
4.50%,
5/1/32
(3)
2,179
2,162
Tuscaloosa
County
IDA,
Hunt
Refining
Project,
Series A,
5.25%,
5/1/44
(3)
17,450
17,320
57,181
ALASKA
0.2%
Valdez
Marine
Terminal
Revenue,
Exxon
Pipeline
Project,
Series C,
VRDN,
3.65%,
12/1/33
5,500
5,500
5,500
ARIZONA
1.6%
Arizona
Distribution
Revenue,
Capital
Appreciation,
5.50%,
7/1/33
(4)
990
1,220
Arizona
Distribution
Revenue,
Capital
Appreciation,
Series B,
5.50%,
7/1/30
(4)
5,690
6,667
Arizona
HFA,
Banner
Health,
Series B,
FRN,
67%
of
3M
USD
LIBOR
+
0.81%,
5.54%,
1/1/37
2,180
2,036
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Arizona
IDA,
Cadence
Campus
Project,
Series A,
4.00%,
7/15/40
(3)
730
629
Arizona
IDA,
Cadence
Campus
Project,
Series A,
4.00%,
7/15/50
(3)
1,265
994
Arizona
IDA,
Doral
Academy
-
Fire
Mesa,
Series A,
5.00%,
7/15/39
1,050
1,056
Arizona
IDA,
Doral
Academy
-
Fire
Mesa,
Series A,
5.00%,
7/15/49
930
893
Arizona
IDA,
Odyssey
Preparatory
Academy,
5.00%,
7/1/49
(3)
3,445
3,076
Arizona
IDA,
Odyssey
Preparatory
Academy,
Series A,
5.25%,
7/1/37
(3)
2,375
2,380
Arizona
IDA,
Odyssey
Preparatory
Academy,
Series A,
5.50%,
7/1/52
(3)
2,695
2,561
Maricopa
County
IDA,
Commercial
Metals
Company
Project,
4.00%,
10/15/47
(3)(5)
6,150
5,499
Maricopa
County,
El
Paso
Electric,
Series A,
PCR,
4.50%,
8/1/42
2,575
2,515
Phoenix
Arizona
IDA,
Downtown
Phoenix
Student
Housing,
5.00%,
7/1/44
790
795
Phoenix
Arizona
IDA,
Downtown
Phoenix
Student
Housing,
5.00%,
7/1/49
475
472
Phoenix
Arizona
IDA,
Downtown
Phoenix
Student
Housing,
5.00%,
7/1/59
1,675
1,630
Pima
County
IDA,
American
Leadership
Academy,
4.00%,
6/15/41
(3)
2,380
2,025
Pima
County
IDA,
American
Leadership
Academy,
4.00%,
6/15/51
(3)
2,530
1,964
Pima
County
IDA,
American
Leadership
Academy,
4.00%,
6/15/57
(3)
2,865
2,138
Salt
Verde
Financial,
5.00%,
12/1/37
12,970
14,227
Tempe
IDA,
Friendship
Village
of
Tempe
Project,
Series A,
4.00%,
12/1/46
1,980
1,520
54,297
ARKANSAS
1.0%
Arkansas
DFA,
Big
River
Steel
Project,
4.50%,
9/1/49
(3)(5)
11,560
11,387
Arkansas
DFA,
Big
River
Steel
Project,
4.75%,
9/1/49
(3)(5)
3,955
3,949
Arkansas
DFA,
Green
Bond,
5.45%,
9/1/52
(5)
5,985
6,096
Arkansas
DFA,
Green
Bond,
7.375%,
7/1/48
(3)(5)
5,000
5,492
Arkansas
DFA,
Green
Bond,
Series A,
6.875%,
7/1/48
(3)(5)
5,000
5,463
32,387
CALIFORNIA
6.8%
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
VRDN,
5.00%,
7/1/53
(Tender
8/1/29)
4,995
5,266
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
VRDN,
5.00%,
12/1/53
(Tender
8/1/29)
10,715
11,239
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
VRDN,
5.50%,
10/1/54
(Tender
11/1/30)
4,550
4,985
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
Series G,
VRDN,
5.25%,
11/1/54
(Tender
4/1/30)
2,285
2,438
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
California
Community
Housing
Agency,
Creekwood,
Series A,
4.00%,
2/1/56
(3)
17,325
11,543
California
Community
Housing
Agency,
Junior
Bonds
Street
Flats,
Series A-2,
4.00%,
8/1/50
(3)
7,980
6,160
California
Community
Housing
Agency,
Senior-Fountains
at
Emerald,
3.00%,
8/1/56
(3)
2,300
1,608
California
Community
Housing
Agency,
Stoneridge
Apartment,
Series A,
4.00%,
2/1/56
(3)
9,425
7,263
California
Community
Housing
Agency,
Verdant
at
Green
Valley
Project,,
5.00%,
8/1/49
(3)
9,600
9,110
California
Housing
Fin.,
Series 2019-1,
Class
A,
4.25%,
1/15/35
2,639
2,631
California
Infrastructure
&
Economic
Dev.
Bank,
Social
Bond,
Series B,
5.00%,
11/1/47
1,790
1,913
California
Infrastructure
&
Economic
Dev.
Bank,
Social
Bond,
Series B,
5.00%,
11/1/57
1,545
1,625
California
Municipal
Fin.
Auth.,
Baptish
Univ.,
Series A,
5.00%,
11/1/46
(3)
2,750
2,695
California
Municipal
Fin.
Auth.,
Community
Health
System,
Series A,
4.00%,
2/1/51
2,800
2,492
California
Municipal
Fin.
Auth.,
John
Adams
Academies
Lincoln
Project,
Series A,
5.00%,
10/1/49
(3)
1,515
1,421
California
Municipal
Fin.
Auth.,
John
Adams
Academies
Lincoln
Project,
Series A,
5.00%,
10/1/57
(3)
1,650
1,503
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
4.00%,
12/31/47
(5)
4,605
4,091
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
Series A,
5.00%,
12/31/43
(5)
9,210
9,202
California
Municipal
Fin.
Auth.,
Samuel
Merritt
Univ.,
5.25%,
6/1/53
4,565
4,914
California
Municipal
Fin.
Auth.,
UCR
North
Dist.
Phase
1,
5.00%,
5/15/49
2,375
2,441
California
Municipal
Fin.
Auth.,
UCR
North
Dist.
Phase
1,
5.00%,
5/15/52
1,980
2,028
California
Municipal
Fin.
Auth.,
West
Village,
5.00%,
5/15/36
2,105
2,231
California
PFA,
Enso
Village
Project,
2.375%,
11/15/28
(3)
1,190
1,149
California
PFA,
Enso
Village
Project,
3.125%,
5/15/29
(3)
1,275
1,228
California
PFA,
Enso
Village
Project,
5.00%,
11/15/46
(3)
595
518
California
PFA,
Enso
Village
Project,
Series B-3,
2.125%,
11/15/27
(3)
495
493
California
School
Fin.
Auth.,
Ivy
Academia
Project,
Series A,
4.00%,
6/1/41
(3)
1,650
1,314
California
School
Fin.
Auth.,
Ivy
Academia
Project,
Series A,
4.00%,
6/1/51
(3)
1,500
1,087
California
School
Fin.
Auth.,
Ivy
Academia
Project,
Series A,
4.00%,
6/1/61
(3)
250
171
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/28
205
204
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/29
220
218
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/30
235
233
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/31
185
183
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/41
1,270
1,146
California
Statewide
CDA,
Series 2021A,
4.00%,
9/2/51
785
646
California
Statewide
CDA,
Series 2021C-1,
4.00%,
9/2/31
880
863
California
Statewide
CDA,
Series 2021C-1,
4.00%,
9/2/41
1,605
1,441
California
Statewide
CDA,
Series 2021C-1,
4.00%,
9/2/51
1,080
893
California
Statewide
CDA,
Series A-1,
5.00%,
9/2/42
3,495
3,567
California
Statewide
CDA,
Series A-1,
5.00%,
9/2/52
4,970
4,940
California
Statewide
CDA,
899
Charleston
Moldaw
Residences,
Series A,
5.375%,
11/1/49
(3)
2,770
2,323
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
5.50%,
12/1/54
10,290
10,147
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.00%,
12/1/27
(3)
2,375
2,425
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.00%,
12/1/46
(3)
3,165
3,127
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.25%,
12/1/56
(3)
6,530
6,559
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.50%,
12/1/58
(3)
14,720
14,966
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
4.00%,
9/2/29
1,585
1,607
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
4.00%,
9/2/41
1,260
1,186
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
4.00%,
9/2/51
1,895
1,665
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
5.00%,
9/2/34
850
907
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
5.00%,
9/2/39
790
817
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
5.00%,
9/2/49
395
405
California
Statewide
Fin.
Auth.,
Tobacco
Industry,
Series A,
6.00%,
5/1/43
1,190
1,215
CMFA
Special
Fin.
Agency
VII,
Breakwater
Apartments,
Series A-2,
4.00%,
8/1/47
(3)
6,770
5,503
CMFA
Special
Fin.
Agency
XII,
Allure
Apartments,
4.375%,
8/1/49
(3)
2,530
2,069
CMFA
Special
Fin.
Agency,
Solana
At
Grand,
Series A-2,
4.00%,
8/1/45
(3)
2,860
2,374
CSCDA
Community
Improvement
Auth.,
Altana
Glendale
Social
Bonds,
Series A-2,
4.00%,
10/1/56
(3)
13,605
10,494
CSCDA
Community
Improvement
Auth.,
Link-Glendale
Social
Bonds,
Series A-1,
3.00%,
7/1/45
(3)
1,750
1,327
CSCDA
Community
Improvement
Auth.,
Link-Glendale
Social
Bonds,
Series A-2,
4.00%,
7/1/56
(3)
6,207
4,541
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
CSCDA
Community
Improvement
Auth.,
Monterey
Station
Apartment
Social
Bonds,
3.125%,
7/1/56
(3)
2,500
1,677
CSCDA
Community
Improvement
Auth.,
Oceanaire
Long
Beach
Social
Bonds,
Series A-2,
4.00%,
9/1/56
(3)
2,485
1,878
CSCDA
Community
Improvement
Auth.,
Parallel
Anaheim
Social
Bonds,
4.00%,
8/1/56
(3)
3,005
2,496
CSCDA
Community
Improvement
Auth.,
Renaissance
at
City
Center,
Series A,
5.00%,
7/1/51
(3)
1,910
1,818
CSCDA
Community
Improvement
Auth.,
Social
Bonds,
Series A-2,
3.00%,
2/1/57
(3)
2,500
1,737
Golden
State
Tobacco
Securitization,
5.00%,
6/1/51
3,410
3,577
Golden
State
Tobacco
Securitization,
Series B-2,
Zero
Coupon,
6/1/66
98,225
11,135
Irvine,
Reassessment
Dist.
No.
12-1,
4.00%,
9/2/27
235
236
Irvine,
Reassessment
Dist.
No.
12-1,
4.00%,
9/2/28
320
322
Northern
California
Gas
Auth.
No.
1,
Series B,
FRN,
67%
of
3M
USD
LIBOR
+
0.72%,
4.466%,
7/1/27
3,830
3,799
Regents
of
the
Univ.
of
California,
Medical
Center
Pooled
Revenue,
Series P,
3.50%,
5/15/54
2,600
2,292
San
Francisco
City
and
County,
Special
Tax
Dist.
No.
2020-1,
Series A,
5.75%,
9/1/50
(3)
850
880
San
Francisco
City
and
County,
Special
Tax
Dist.
No.
2020-1,
Series B,
5.75%,
9/1/53
(3)
1,290
1,328
West
Sacramento
Fin.
Auth.,
Series A,
5.00%,
9/1/34
(6)
1,560
1,796
227,721
COLORADO
3.7%
Aerotropolis
Regional
Transportation
Auth.,
4.375%,
12/1/52
8,340
6,931
Berthoud-Heritage
Metropolitan
Dist.
No.
1,
5.625%,
12/1/48
6,865
6,867
Brighton
Crossing
Metropolitan
Dist.
No.
4,
Series A,
GO,
5.00%,
12/1/47
1,225
1,191
Buffalo
Highlands
Metropolitan
Dist.,
Series A,
GO,
5.25%,
12/1/38
999
999
Buffalo
Highlands
Metropolitan
Dist.,
Series A,
GO,
5.375%,
12/1/48
3,250
3,178
Canyons
Metropolitan
Dist.
No.
5,
Series A,
GO,
6.00%,
12/1/37
1,150
1,152
Canyons
Metropolitan
Dist.
No.
5,
Series A,
GO,
6.125%,
12/1/47
4,000
4,011
Canyons
Metropolitan
Dist.
No.
6,
Series A,
GO,
6.125%,
12/1/47
2,000
2,003
Centerra
Metropolitan
Dist.
No.
1,
5.00%,
12/1/47
(3)
3,500
3,258
Colorado
HFA,
Frasier,
Series 2023A,
4.00%,
5/15/31
485
472
Colorado
HFA,
Frasier,
Series 2023A,
4.00%,
5/15/32
590
571
Colorado
HFA,
Frasier,
Series 2023A,
4.00%,
5/15/41
1,160
1,025
Colorado
HFA,
Frasier,
Series 2023A,
4.00%,
5/15/48
1,770
1,448
Colorado
HFA,
Sunny
Vista
Living
Center,
Series A,
5.75%,
12/1/35
(3)
1,145
857
Colorado
HFA,
Sunny
Vista
Living
Center,
Series A,
6.125%,
12/1/45
(3)
2,350
1,611
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Colorado
HFA,
Sunny
Vista
Living
Center,
Series A,
6.25%,
12/1/50
(3)
3,285
2,219
Colorado
High
Performance
Transportation
Enterprise,
C-470
Express
Lanes,
5.00%,
12/31/47
750
752
Colorado
High
Performance
Transportation
Enterprise,
C-470
Express
Lanes,
5.00%,
12/31/51
6,990
7,007
Colorado
High
Performance
Transportation
Enterprise,
C-470
Express
Lanes,
5.00%,
12/31/56
11,325
11,348
Colorado
Int'l.
Center
Metropolitan
Dist.
No.
14,
GO,
5.875%,
12/1/46
5,330
5,341
Colorado
Science
&
Technology
Park
Metropolitan
Dist.
No.
1,
5.00%,
12/1/33
3,040
3,053
Colorado
Science
&
Technology
Park
Metropolitan
Dist.
No.
1,
5.25%,
12/1/48
2,200
2,182
Cornerstar
Metropolitan
Dist.,
Series A,
GO,
5.125%,
12/1/37
500
501
Cornerstar
Metropolitan
Dist.,
Series A,
GO,
5.25%,
12/1/47
2,600
2,573
Denver
Int'l.
Business
Center
Metropolitan
Dist.
No.
1,
Series B,
GO,
6.00%,
12/1/48
1,190
1,200
Green
Valley
Ranch
East
Metropolitan
Dist.
No.
6,
Series A,
GO,
5.875%,
12/1/50
2,200
2,209
Lakes
at
Centerra
Metropolitan
Dist.
No.
2,
Series A,
GO,
5.125%,
12/1/37
1,695
1,695
Lakes
at
Centerra
Metropolitan
Dist.
No.
2,
Series A,
GO,
5.25%,
12/1/47
3,970
3,846
Painted
Prairie
Metropolitan
Dist.
No.
2,
GO,
5.25%,
12/1/48
4,003
3,790
Peak
Metropolitan
Dist.
No.
1,
Series A,
GO,
4.00%,
12/1/35
(3)
500
441
Peak
Metropolitan
Dist.
No.
1,
Series A,
GO,
5.00%,
12/1/51
(3)
5,270
4,735
Public
Auth.
for
Colorado
Energy,
6.25%,
11/15/28
4,770
5,059
Public
Auth.
for
Colorado
Energy,
6.50%,
11/15/38
9,210
11,379
Pueblo
Urban
Renewal
Auth.,
4.75%,
12/1/45
(3)
5,690
3,869
Rampart
Range
Metropolitan
Dist.
No
5,
4.00%,
12/1/51
7,025
5,224
Riverwalk
Metropolitan
Dist.
No
2,
Series A,
5.00%,
12/1/52
4,245
3,806
Southglenn
Metropolitan
Dist.,
GO,
5.00%,
12/1/36
810
799
Southglenn
Metropolitan
Dist.,
GO,
5.00%,
12/1/46
1,455
1,360
STC
Metropolitan
Dist.
No.
2,
Series A,
GO,
4.00%,
12/1/29
1,000
954
STC
Metropolitan
Dist.
No.
2,
Series A,
GO,
5.00%,
12/1/38
785
744
STC
Metropolitan
Dist.
No.
2,
Series A,
GO,
5.00%,
12/1/49
1,000
917
Vauxmont
Metropolitan
Dist.,
GO,
5.00%,
12/1/32
(7)
595
658
Vauxmont
Metropolitan
Dist.,
GO,
5.00%,
12/1/35
(7)
235
258
123,493
CONNECTICUT
1.2%
Connecticut
State
HEFA,
Church
Home
of
Hartford,
Series A,
5.00%,
9/1/46
(3)
1,060
911
Connecticut
State
HEFA,
Church
Home
of
Hartford,
Series A,
5.00%,
9/1/53
(3)
1,260
1,032
Connecticut
State
HEFA,
Hartford
Univ.,
4.00%,
7/1/44
2,870
2,273
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Connecticut
State
HEFA,
Hartford
Univ.,
4.00%,
7/1/49
4,200
3,151
Connecticut
State
HEFA,
Masonicare,
Series F,
5.00%,
7/1/31
2,000
2,011
Connecticut
State
HEFA,
Masonicare,
Series F,
5.00%,
7/1/32
3,280
3,297
Connecticut
State
HEFA,
Masonicare,
Series F,
5.00%,
7/1/33
2,055
2,066
Connecticut
State
HEFA,
Masonicare,
Series F,
5.00%,
7/1/34
1,435
1,442
Connecticut
State
HEFA,
Masonicare,
Series F,
5.00%,
7/1/43
8,115
7,737
Hamden
Town,
Whitney
Center
Project,
5.00%,
1/1/40
5,125
4,719
Hamden
Town,
Whitney
Center
Project,
5.00%,
1/1/50
6,160
5,179
Mashantucket
Western
Pequot
Tribe,
6.05%,
7/1/31
(4.00%
Cash
and
2.05%
PIK)
(1)(2)(8)
23,166
5,154
Steel
Point
Infrastructure
Improvement
Dist.,
Steelpointe
Harbor
Project,
4.00%,
4/1/41
(3)
550
467
Steel
Point
Infrastructure
Improvement
Dist.,
Steelpointe
Harbor
Project,
4.00%,
4/1/51
(3)
2,715
2,085
41,524
DELAWARE
1.0%
Delaware
Economic
Dev.
Auth.,
Newark
Charter
School,
4.00%,
9/1/30
200
202
Delaware
Economic
Dev.
Auth.,
Newark
Charter
School,
5.00%,
9/1/40
1,025
1,065
Delaware
Economic
Dev.
Auth.,
Newark
Charter
School,
5.00%,
9/1/50
1,385
1,407
Delaware
HFA,
Beebe
Medical
Center,
5.00%,
6/1/37
790
804
Delaware
HFA,
Beebe
Medical
Center,
5.00%,
6/1/43
4,920
4,947
Delaware
HFA,
Beebe
Medical
Center,
5.00%,
6/1/48
2,035
2,037
Delaware
HFA,
Beebe
Medical
Center,
5.00%,
6/1/50
4,390
4,379
Delaware
State
Economic
Dev.
Auth.,
4.00%,
6/1/52
1,260
935
Delaware
State
Economic
Dev.
Auth.,
4.00%,
6/1/57
1,220
880
Kent
County,
CHF
Dover
&
Delaware
Univ.
Project,
Series A,
5.00%,
7/1/32
205
210
Kent
County,
CHF
Dover
&
Delaware
Univ.
Project,
Series A,
5.00%,
7/1/40
890
895
Kent
County,
CHF
Dover
&
Delaware
Univ.
Project,
Series A,
5.00%,
7/1/48
2,335
2,326
Kent
County,
CHF
Dover
&
Delaware
Univ.
Project,
Series A,
5.00%,
7/1/53
3,445
3,399
Kent
County,
CHF
Dover
&
Delaware
Univ.
Project,
Series A,
5.00%,
7/1/58
2,915
2,837
Sussex
County,
Cadbury
at
Lewes,
5.00%,
1/1/36
7,285
7,132
33,455
DISTRICT
OF
COLUMBIA
2.0%
District
of
Columbia
Tobacco
Settlement
Fin.,
Series A,
Zero
Coupon,
6/15/46
41,185
9,946
District
of
Columbia
Tobacco
Settlement
Fin.,
Series B,
Zero
Coupon,
6/15/46
18,210
3,906
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
District
of
Columbia,
Friendship
Public
Charter
School,
5.00%,
6/1/36
2,375
2,398
District
of
Columbia,
Friendship
Public
Charter
School,
5.00%,
6/1/41
1,540
1,534
District
of
Columbia,
Friendship
Public
Charter
School,
5.00%,
6/1/46
2,285
2,216
District
of
Columbia,
Ingleside
at
Rock
Creek,
Series A,
5.00%,
7/1/37
2,295
2,240
District
of
Columbia,
Ingleside
at
Rock
Creek,
Series A,
5.00%,
7/1/42
4,065
3,787
District
of
Columbia,
Ingleside
at
Rock
Creek,
Series A,
5.00%,
7/1/52
9,730
8,423
District
of
Columbia,
Methodist
Home
of
D.C.,
Series A,
5.125%,
1/1/35
1,240
1,111
District
of
Columbia,
Methodist
Home
of
D.C.,
Series A,
5.25%,
1/1/39
805
704
District
of
Columbia,
Union
Market
Infrastructure
Project,
STEP,
0.00%,
6/1/31
(3)
900
735
District
of
Columbia,
Union
Market
Infrastructure
Project,
STEP,
0.00%,
6/1/46
(3)
2,810
1,928
Metropolitan
Washington
Airports
Auth.,
Airport
System
Revenue
&
Refunding
Bond,
Series A,
5.00%,
10/1/46
(5)
3,000
3,168
Metropolitan
Washington
Airports
Auth.,
Dulles
Toll
Road,
Series B,
6.50%,
10/1/44
11,080
12,283
Metropolitan
Washington
Airports
Auth.,
Dulles
Toll
Road,
Series B,
Zero
Coupon,
10/1/37
(7)
10,135
5,902
Metropolitan
Washington
Airports
Auth.,
Dulles
Toll
Road,
Series B,
Zero
Coupon,
10/1/38
7,915
4,228
Metropolitan
Washington
Airports
Auth.,
Dulles
Toll
Road,
Series B,
Zero
Coupon,
10/1/39
1,585
800
Metropolitan
Washington
Airports
Auth.,
Dulles
Toll
Road,
Series B,
Zero
Coupon,
10/1/40
3,955
1,874
67,183
FLORIDA
3.9%
Alachua
County
HFA,
East
Ridge
Retirement
Village,
6.00%,
11/15/34
190
144
Alachua
County
HFA,
East
Ridge
Retirement
Village,
6.375%,
11/15/49
7,480
5,040
Avenir
Community
Dev.
Dist.,
5.375%,
5/1/43
2,300
2,312
Avenir
Community
Dev.
Dist.,
5.625%,
5/1/54
1,100
1,114
Boggy
Creek
Improvement
Dist.,
Special
Assessment,
Series 2013,
5.125%,
5/1/43
7,035
7,035
Broward
County
Port
Fac.
Revenue,
Senior
Bond,
Series B,
4.00%,
9/1/49
(5)
10,000
9,372
Capital
Projects
Fin.
Auth.,
Florida
Univ.
Project,
Series A-1,
5.00%,
10/1/29
875
911
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Capital
Projects
Fin.
Auth.,
Florida
Univ.
Project,
Series A-1,
5.00%,
10/1/30
250
261
Capital
Projects
Fin.
Auth.,
Florida
Univ.
Project,
Series A-1,
5.00%,
10/1/31
1,015
1,060
Capital
Projects
Fin.
Auth.,
Florida
Univ.
Project,
Series A-1,
5.00%,
10/1/33
900
935
Capital
Projects
Fin.
Auth.,
Florida
Univ.
Project,
Series A-1,
5.00%,
10/1/34
975
1,009
Capital
Trust
Agency,
4.00%,
6/15/24
(3)
900
897
Capital
Trust
Agency,
4.00%,
6/15/41
(3)
1,790
1,491
Capital
Trust
Agency,
4.00%,
6/15/51
(3)
2,735
2,043
Capital
Trust
Agency,
Bridge
Univ.
Student
Housing,
Series A,
5.25%,
12/1/58
(3)
7,220
6,930
Capital
Trust
Auth.,
Kipp
Miami
North
Campus
Project,
Series A,
5.625%,
6/15/44
(3)
410
413
Capital
Trust
Auth.,
Kipp
Miami
North
Campus
Project,
Series A,
6.00%,
6/15/54
(3)
655
663
Capital
Trust
Auth.,
Kipp
Miami
North
Campus
Project,
Series A,
6.125%,
6/15/60
(3)
800
810
Celebration
Pointe
Community
Dev.
Dist.,
3.00%,
5/1/31
565
521
Celebration
Pointe
Community
Dev.
Dist.,
3.375%,
5/1/41
1,055
870
Celebration
Pointe
Community
Dev.
Dist.,
4.00%,
5/1/53
1,310
1,055
Celebration
Pointe
Community
Dev.
Dist.,
4.75%,
5/1/24
150
150
Celebration
Pointe
Community
Dev.
Dist.,
5.125%,
5/1/45
755
755
Celebration
Pointe
Community
Dev.
Dist.,
Alachua
County,
5.00%,
5/1/32
830
844
Crossings
at
Fleming
Island
Community
Dev.
Dist.,
Series A-1,
4.50%,
5/1/30
295
294
Double
Branch
Community
Dev.
Dist.,
Special
Assessment,
Series A-1,
4.00%,
5/1/25
200
200
Everest
GMR
Community
Dev.
Dist.,
6.20%,
5/1/54
5,985
6,089
Florida
Dev.
Fin.,
UF
Health
Jacksonville
Project,
4.00%,
2/1/52
2,945
2,220
Florida
Dev.
Fin.,
UF
Health
Jacksonville
Project,
5.00%,
2/1/52
1,450
1,334
Florida
Dev.
Fin.,
Waste
Pro
USA,
3.00%,
6/1/32
(5)
5,130
4,244
Florida
Dev.
Fin.,
Waste
Pro
USA,
VRDN,
6.125%,
7/1/32
(Tender
7/1/26)
(3)(5)
8,900
9,051
Florida
Higher
Ed.
Fac.
Fin.
Auth.,
Jacksonville
Univ.,
Series A-1,
4.75%,
6/1/38
(3)
2,495
2,364
Florida
Higher
Ed.
Fac.
Fin.
Auth.,
Jacksonville
Univ.,
Series A-1,
5.00%,
6/1/48
(3)
9,850
9,022
Jacksonville
Ed.
Fac.,
Jacksonville
Univ.,
Series B,
5.00%,
6/1/53
(3)
9,095
8,169
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
Centre
&
Northwest
Sector,
5.50%,
5/1/39
(3)
740
762
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
Centre
&
Northwest
Sector,
5.65%,
5/1/48
(3)
915
935
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
National
Polo
Run,
5.25%,
5/1/37
2,880
2,928
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
National
Polo
Run,
5.375%,
5/1/47
3,635
3,689
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
Ranch
South,
5.00%,
5/1/36
1,170
1,182
Lakewood
Ranch
Stewardship
Dist.,
Lakewood
Ranch
South,
5.125%,
5/1/46
2,335
2,324
Lakewood
Ranch
Stewardship
Dist.,
Northeast
Sector,
5.30%,
5/1/39
790
806
Lakewood
Ranch
Stewardship
Dist.,
Northeast
Sector,
5.45%,
5/1/48
1,365
1,383
Lee
County
IDA,
Preserve,
Series A,
5.00%,
12/1/27
(3)
325
301
Lee
County
IDA,
Preserve,
Series A,
5.375%,
12/1/32
(3)
900
775
Lee
County
IDA,
Preserve,
Series A,
5.625%,
12/1/37
(3)
1,170
937
Miami-Dade
County
Water
&
Sewer
System,
4.00%,
10/1/48
4,510
4,410
Orange
County
HFA,
4.00%,
10/1/52
4,605
4,412
Sarasota
County
HFA,
Village
on
the
Isle,
Series A,
5.00%,
1/1/37
1,095
1,089
Sarasota
County
HFA,
Village
on
the
Isle,
Series A,
5.00%,
1/1/42
1,035
983
Sarasota
County
HFA,
Village
on
the
Isle,
Series A,
5.00%,
1/1/47
2,535
2,319
Sarasota
County
HFA,
Village
on
the
Isle,
Series A,
5.00%,
1/1/52
5,360
4,771
Sawyers
Landing
Community
Dev.
Dist.,
4.125%,
5/1/41
2,420
2,001
Sawyers
Landing
Community
Dev.
Dist.,
4.25%,
5/1/53
3,225
2,541
Tolomato
Community
Dev.
Dist.,
Special
Assessment,
Series
2015-
2,
STEP,
0.00%,
5/1/40
545
522
Tolomato
Community
Dev.
Dist.,
Special
Assessment,
Series
2015-
3,
6.61%,
5/1/40
(1)(2)
640
—
Viera
Stewardship
Dist.,
Series 2021,
3.125%,
5/1/41
830
647
Viera
Stewardship
Dist.,
Series 2021,
4.00%,
5/1/53
3,020
2,397
131,736
GEORGIA
3.1%
Atlanta
Airport
Passenger
Fac.
Charge,
Green
Bond,
Series E,
5.25%,
7/1/42
(5)
6,650
7,356
Atlanta
Dev.
Auth.,
Georgia
Proton
Treatment
Center,
Series A-1,
6.50%,
1/1/29
(1)(2)
2,850
1,283
Atlanta
Dev.
Auth.,
Georgia
Proton
Treatment
Center,
Series A-1,
6.75%,
1/1/35
(1)(2)
13,765
6,194
Atlanta
Dev.
Auth.,
Georgia
Proton
Treatment
Center,
Series A-1,
7.00%,
1/1/40
(1)(2)
8,525
3,836
Atlanta
Urban
Redev.
Agency,
Beltline
Trail
Completion
Project,
2.375%,
7/1/26
(3)
900
880
Atlanta
Urban
Redev.
Agency,
Beltline
Trail
Completion
Project,
2.875%,
7/1/31
(3)(9)
1,625
1,527
Atlanta
Urban
Redev.
Agency,
Beltline
Trail
Completion
Project,
3.625%,
7/1/42
(3)(9)
3,360
3,134
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Atlanta
Urban
Redev.
Agency,
Beltline
Trail
Completion
Project,
3.875%,
7/1/51
(3)(9)
4,250
3,878
Burke
County
Dev.
Auth.,
Plant
Vogtle,
VRDN,
4.30%,
11/1/52
250
250
Burke
County
Dev.
Auth.,
Plant
Vogtle,
VRDN,
PCR,
4.00%,
7/1/49
1,125
1,125
Fulton
County
Dev.
Auth.,
Piedmont
Healthcare
Project,
4.00%,
7/1/49
4,000
3,779
Fulton
County
Residential
Care
Fac.
for
the
Elderly
Auth.,
Canterbury
Court
Project,
Series A,
4.00%,
4/1/41
(3)
2,375
1,938
Fulton
County
Residential
Care
Fac.
for
the
Elderly
Auth.,
Canterbury
Court
Project,
Series A,
4.00%,
4/1/51
(3)
6,730
4,889
Fulton
County
Residential
Care
Fac.
for
the
Elderly
Auth.,
Canterbury
Court
Project,
Series A,
5.00%,
4/1/47
(3)
2,730
2,394
Fulton
County
Residential
Care
Fac.
for
the
Elderly
Auth.,
Canterbury
Court
Project,
Series A,
5.00%,
4/1/54
(3)
2,180
1,851
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
2.375%,
1/1/31
2,205
1,971
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
3.625%,
1/1/31
(3)
1,220
1,120
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
4.00%,
1/1/36
1,190
1,200
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
4.00%,
1/1/54
4,250
3,766
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
5.00%,
1/1/36
(3)
2,645
2,644
George
L
Smith
II
Congress
Center
Auth.,
Convention
Center
Hotel,
5.00%,
1/1/54
(3)
13,030
11,703
Macon-Bibb
County
Urban
Dev.
Auth.,
Academy
Classical
Ed.,
Series A,
5.00%,
6/15/27
(3)
210
212
Macon-Bibb
County
Urban
Dev.
Auth.,
Academy
Classical
Ed.,
Series A,
5.75%,
6/15/37
(3)
1,215
1,252
Macon-Bibb
County
Urban
Dev.
Auth.,
Academy
Classical
Ed.,
Series A,
5.875%,
6/15/47
(3)
1,980
2,018
Macon-Bibb
County
Urban
Dev.
Auth.,
Academy
Classical
Ed.,
Series A,
6.00%,
6/15/52
(3)
1,215
1,239
Main
Street
Natural
Gas,
Series A,
VRDN,
5.00%,
6/1/53
(Tender
6/1/30)
2,810
2,957
Main
Street
Natural
Gas,
Series C,
VRDN,
5.00%,
9/1/53
(Tender
9/1/30)
2,725
2,900
Main
Street
Natural
Gas,
Georgia
Municipal
Gas
Auth.,
Series B,
VRDN,
5.00%,
12/1/52
(Tender
6/1/29)
5,855
6,153
Marietta
Dev.
Auth.,
Life
Univ.,
Series A,
5.00%,
11/1/27
(3)
2,745
2,762
Marietta
Dev.
Auth.,
Life
Univ.,
Series A,
5.00%,
11/1/37
(3)
2,210
2,142
Marietta
Dev.
Auth.,
Life
Univ.,
Series A,
5.00%,
11/1/47
(3)
8,705
7,929
Municipal
Electric
Auth.
of
Georgia,
Plant
Vogtle
Project,
Series A,
5.00%,
1/1/49
6,000
6,110
102,392
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
GUAM
0.3%
Guam
Power
Auth.,
Series A,
5.00%,
10/1/42
4,050
4,230
Guam
Power
Auth.,
Series A,
5.00%,
10/1/43
1,930
2,010
Guam
Power
Auth.,
Series A,
5.00%,
10/1/44
1,695
1,758
Territory
of
Guam,
Series F,
4.00%,
1/1/42
850
816
Territory
of
Guam,
Series F,
5.00%,
1/1/30
790
851
Territory
of
Guam,
Series F,
5.00%,
1/1/31
790
858
10,523
IDAHO
0.5%
Power
County
IDC,
FMC
Project,
6.45%,
8/1/32
(5)
3,620
3,632
Spring
Valley
Community
Infrastructure
Dist.
No.
1,
Assessment
Area
Two,
6.25%,
9/1/53
(10)
4,700
4,731
Spring
Valley
Community
Infrastructure
Dist.
No.
1,
Special
Assessment
Bonds,
3.75%,
9/1/51
(3)
10,196
7,984
16,347
ILLINOIS
5.8%
Chicago,
Series 2005D,
GO,
5.50%,
1/1/40
9,495
9,545
Chicago,
Series A,
GO,
5.00%,
1/1/39
1,025
1,066
Chicago,
Series A,
GO,
5.00%,
1/1/40
2,375
2,460
Chicago,
Series A,
GO,
5.50%,
1/1/35
3,165
3,418
Chicago
Board
of
Ed.,
Series A,
GO,
5.00%,
12/1/34
(7)
830
879
Chicago
Board
of
Ed.,
Series A,
GO,
5.00%,
12/1/35
(7)
900
950
Chicago
Board
of
Ed.,
School
Reform,
Series B-1,
GO,
Zero
Coupon,
12/1/27
(11)
12,290
10,642
Chicago
Board
of
Ed.,
School
Reform,
Series B-1,
GO,
Zero
Coupon,
12/1/29
(7)
11,245
9,061
Chicago,
City
Colleges,
GO,
Zero
Coupon,
1/1/27
(11)(12)
7,915
7,216
Chicago,
Works,
Series A,
GO,
5.50%,
1/1/40
2,530
2,751
Chicago,
Works,
Series A,
GO,
5.50%,
1/1/41
2,130
2,266
Chicago,
Works,
Series A,
GO,
5.50%,
1/1/43
2,095
2,216
Illinois,
GO,
5.00%,
5/1/34
1,585
1,588
Illinois,
Series A,
GO,
5.00%,
10/1/31
1,980
2,141
Illinois,
Series A,
GO,
5.50%,
3/1/42
3,340
3,726
Illinois,
Series A,
GO,
5.50%,
3/1/47
5,040
5,519
Illinois,
Series B,
GO,
5.00%,
10/1/31
1,820
1,968
Illinois,
Series B,
GO,
5.00%,
10/1/32
2,485
2,680
Illinois,
Series B,
GO,
5.00%,
12/1/33
2,715
3,055
Illinois,
Series B,
GO,
5.50%,
5/1/47
1,890
2,072
Illinois,
Series C,
GO,
5.00%,
11/1/29
8,450
8,988
Illinois,
Series D,
GO,
5.00%,
11/1/25
790
811
Illinois
DFA,
Citgo
Petroleum,
8.00%,
6/1/32
(5)
1,385
1,386
Illinois
Fin.
Auth.,
Admiral
at
the
Lake,
5.125%,
5/15/38
8,705
7,605
Illinois
Fin.
Auth.,
Admiral
at
the
Lake,
5.25%,
5/15/42
1,585
1,319
Illinois
Fin.
Auth.,
Admiral
at
the
Lake,
5.25%,
5/15/54
6,735
5,099
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Illinois
Fin.
Auth.,
Depaul
College
Prep
Foundation,
5.25%,
8/1/38
(3)
1,000
1,062
Illinois
Fin.
Auth.,
Depaul
College
Prep
Foundation,
5.50%,
8/1/43
(3)
1,000
1,057
Illinois
Fin.
Auth.,
Depaul
College
Prep
Foundation,
5.625%,
8/1/53
(3)
1,195
1,243
Illinois
Fin.
Auth.,
Franciscan
Communities,
Series A,
5.00%,
5/15/37
3,050
3,060
Illinois
Fin.
Auth.,
Franciscan
Communities,
Series A,
5.00%,
5/15/47
1,230
1,159
Illinois
Fin.
Auth.,
Plymouth
Place,
5.25%,
5/15/45
(Prerefunded
5/15/25)
(13)
950
973
Illinois
Fin.
Auth.,
Plymouth
Place,
5.25%,
5/15/50
(Prerefunded
5/15/25)
(13)
2,575
2,636
Illinois
Fin.
Auth.,
Silver
Cross
Hosp.,
5.00%,
8/15/35
2,115
2,152
Illinois
Fin.
Auth.,
Silver
Cross
Hosp.,
5.00%,
8/15/44
3,955
3,990
Illinois
Fin.
Auth.,
Three
Crowns
Park,
5.00%,
2/15/32
910
918
Illinois
Fin.
Auth.,
Three
Crowns
Park,
5.25%,
2/15/37
630
635
Illinois
Fin.
Auth.,
Villa
Saint
Benedict,
6.125%,
11/15/35
2,310
2,328
Illinois
Fin.
Auth.,
Villa
Saint
Benedict,
6.375%,
11/15/43
3,165
3,186
Illinois
Housing
Dev.
Auth.,
Series G,
5.00%,
10/1/46
1,380
1,441
Illinois
Housing
Dev.
Auth.,
Series G,
6.25%,
10/1/52
1,240
1,335
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
4.00%,
6/15/52
2,120
1,967
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
5.00%,
12/15/45
595
618
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
5.00%,
6/15/50
8,285
8,516
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
12/15/35
850
524
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
6/15/36
730
436
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
6/15/37
1,115
629
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
12/15/38
2,375
1,226
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
6/15/39
2,575
1,296
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Zero
Coupon,
6/15/41
905
406
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Series A,
Zero
Coupon,
12/15/30
(11)
3,040
2,376
Metropolitan
Pier
&
Exposition
Auth.,
McCormick
Place,
Series A,
Zero
Coupon,
12/15/33
(11)
46,130
32,127
Regional
Transportation
Auth.,
Series A,
6.00%,
7/1/33
(11)
5,935
7,215
Upper
Illinois
River
Valley
Dev.
Auth.,
Cambridge
Lakes
Learning
Center,
Series A,
5.00%,
12/1/32
(3)
3,100
3,063
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Upper
Illinois
River
Valley
Dev.
Auth.,
Cambridge
Lakes
Learning
Center,
Series A,
5.25%,
12/1/47
(3)
6,420
5,852
193,853
INDIANA
1.8%
East
Chicago,
USG
Project,
5.50%,
9/1/28
(5)
1,405
1,340
Indiana
Fin.
Auth.
Depauw
University
Project,
Series A,
5.50%,
7/1/52
8,655
9,078
Indiana
Fin.
Auth.,
Ohio
Valley
Electric,
Series A,
4.25%,
11/1/30
5,160
5,182
Indiana
Fin.
Auth.,
Parkview
Health
System,
Series D,
VRDN,
3.65%,
11/1/39
3,400
3,400
Indiana
Fin.
Auth.,
Student
Housing
Project,
Series A,
5.00%,
6/1/53
3,350
3,464
Indiana
Fin.
Auth.,
Student
Housing
Project,
Series A,
5.125%,
6/1/58
1,650
1,709
Indiana
Fin.
Auth.,
U.S.
Steel,
Series A,
4.125%,
12/1/26
10,935
10,922
Indianapolis
Airport
Auth.,
United
Airlines,
Series A,
6.50%,
11/15/31
(1)(5)(14)
9,846
—
Indianapolis
Local
Public
Improvement
Bond
Bank,
Convention
Center
Hotel,
Series E,
6.00%,
3/1/53
7,490
8,047
Town
of
Shoals,
National
Gypsum,
7.25%,
11/1/43
(5)
3,915
3,921
Valparaiso,
Pratt
Paper,
6.75%,
1/1/34
(5)
5,860
5,874
Valparaiso,
Pratt
Paper,
7.00%,
1/1/44
(5)
7,915
7,932
60,869
IOWA
0.0%
Iowa
Fin.
Auth.,
Unitypoint
Health,
Series E,
VRDN,
3.60%,
2/15/41
100
100
100
KANSAS
0.1%
Lenexa,
Lakeview
Village,
Series A,
5.00%,
5/15/30
1,010
1,028
Lenexa,
Lakeview
Village,
Series A,
5.00%,
5/15/32
910
923
Lenexa,
Lakeview
Village,
Series A,
5.00%,
5/15/39
930
915
2,866
KENTUCKY
1.9%
Henderson,
Pratt
Paper,
Series B,
4.45%,
1/1/42
(3)(5)
1,945
1,896
Henderson,
Pratt
Paper,
Series B,
4.70%,
1/1/52
(3)(5)
6,270
6,071
Kentucky
Economic
DFA,
Baptist
Life
Communities,
6.25%,
11/15/46
2,770
2,175
Kentucky
Economic
DFA,
Baptist
Life
Communities,
6.375%,
11/15/51
4,635
3,599
Kentucky
Economic
DFA,
Masonic
Home
Independent
Living,
Series A,
5.00%,
5/15/46
5,625
4,268
Kentucky
Economic
DFA,
Masonic
Home
Independent
Living,
Series A,
5.00%,
5/15/51
2,905
2,136
Kentucky
Economic
DFA,
Masonic
Homes
of
Kentucky,
5.375%,
11/15/42
3,560
2,873
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Kentucky
Economic
DFA,
Masonic
Homes
of
Kentucky,
5.50%,
11/15/45
1,860
1,482
Kentucky
Economic
DFA,
Owensboro
Medical
Health,
Series A,
5.00%,
6/1/37
3,555
3,634
Kentucky
Economic
DFA,
Owensboro
Medical
Health,
Series A,
5.00%,
6/1/41
4,040
4,094
Kentucky
Economic
DFA,
Owensboro
Medical
Health,
Series A,
5.00%,
6/1/45
6,415
6,471
Kentucky
Economic
DFA,
Owensboro
Medical
Health,
Series A,
5.25%,
6/1/41
6,035
6,156
Kentucky
Economic
DFA,
Owensboro
Medical
Health,
Series A,
5.25%,
6/1/50
11,165
11,186
Kentucky
Public
Energy
Auth.,
Series C,
VRDN,
4.00%,
2/1/50
(Tender
2/1/28)
6,085
6,105
62,146
LOUISIANA
1.4%
Jefferson
Parish
Economic
Dev.
&
Port
Dist.,
Kenner
Discovery
Health
Sciences,
Series A,
5.50%,
6/15/38
(3)
1,900
1,910
Jefferson
Parish
Economic
Dev.
&
Port
Dist.,
Kenner
Discovery
Health
Sciences,
Series A,
5.625%,
6/15/48
(3)
2,220
2,186
Louisiana
Gasoline
&
Fuels
Tax
Second
Lien,
Series A-1,
VRDN,
3.65%,
5/1/43
2,200
2,200
Louisiana
Local
Gov't
Environmental
Fac.
&
Community
Dev.
Auth.,
Westlake
Chemical,
3.50%,
11/1/32
11,300
10,906
Louisiana
Public
Fac.
Auth.,
Waste
Pro
USA
Project,
VRDN,
6.75%,
10/1/53
(Tender
10/1/28)
(3)(5)
3,500
3,604
New
Orleans
Sewerage
Service,
5.00%,
6/1/33
(Prerefunded
6/1/25)
(13)
1,140
1,166
New
Orleans
Sewerage
Service,
5.00%,
6/1/40
(Prerefunded
6/1/25)
(13)
2,165
2,215
New
Orleans
Sewerage
Service,
5.00%,
6/1/45
(Prerefunded
6/1/25)
(13)
1,385
1,417
New
Orleans
Water
System,
5.00%,
12/1/45
(Prerefunded
12/1/25)
(13)
4,355
4,503
Saint
James
Parish,
Nustar
Logistics,
VRDN,
5.85%,
8/1/41
(Tender
6/1/25)
(3)
1,310
1,334
Saint
James
Parish,
Nustar
Logistics,
VRDN,
6.10%,
6/1/38
(Tender
6/1/30)
(3)
4,190
4,591
Saint
James
Parish,
Nustar
Logistics,
Series 2,
6.35%,
7/1/40
(3)
4,235
4,614
Saint
James
Parish,
Nustar
Logistics,
Series B,
VRDN,
6.10%,
12/1/40
(Tender
6/1/30)
(3)
5,485
6,010
46,656
MARYLAND
5.1%
Anne
Arundel
County,
Annapolis
Area
Christian
School,
Series A,
6.50%,
7/1/33
2,355
2,356
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Anne
Arundel
County,
Annapolis
Area
Christian
School,
Series A,
6.75%,
7/1/43
4,575
4,576
Baltimore
City,
Convention
Center
Hotel,
5.00%,
9/1/42
2,260
2,185
Baltimore
City,
Convention
Center
Hotel,
5.00%,
9/1/46
17,045
16,016
Gaithersburg,
Asbury
Obligated
Group,
Series A,
5.00%,
1/1/27
1,190
1,203
Gaithersburg,
Asbury
Obligated
Group,
Series A,
5.00%,
1/1/33
4,410
4,479
Maryland
Economic
Dev.,
Baltimore
City
Project,
Series A,
5.00%,
6/1/58
4,040
4,066
Maryland
Economic
Dev.,
Bowie
State
Univ.
Project,
5.00%,
6/1/25
750
757
Maryland
Economic
Dev.,
Bowie
State
Univ.
Project,
5.00%,
6/1/29
(3)
1,900
1,938
Maryland
Economic
Dev.,
Bowie
State
Univ.
Project,
5.00%,
6/1/33
(3)
2,010
2,047
Maryland
Economic
Dev.,
Port
Covington
Project,
3.25%,
9/1/30
750
713
Maryland
Economic
Dev.,
Port
Covington
Project,
4.00%,
9/1/40
1,740
1,611
Maryland
Economic
Dev.,
Port
Covington
Project,
4.00%,
9/1/50
2,000
1,693
Maryland
Economic
Dev.,
Purple
Line
Light
Rail
Project,
Series B,
5.25%,
6/30/55
(5)
41,675
42,360
Maryland
Economic
Dev.,
Senior-Annapolis
Mobility,
5.25%,
6/30/53
4,635
4,810
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/25
825
833
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/27
790
823
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/28
1,190
1,257
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/30
790
834
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/32
815
857
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/35
2,050
2,153
Maryland
HHEFA,
Adventist
Healthcare,
Series A,
5.50%,
1/1/36
5,430
5,632
Maryland
HHEFA,
Adventist
Healthcare,
Series A,
5.50%,
1/1/46
16,365
16,620
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
5.00%,
7/1/32
475
488
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
5.00%,
7/1/33
1,205
1,237
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
5.00%,
7/1/34
1,425
1,465
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
5.00%,
7/1/35
1,270
1,305
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
5.00%,
7/1/36
1,190
1,220
Maryland
HHEFA,
Stevenson
Univ.
Project,
Series A,
4.00%,
6/1/46
2,575
2,204
Maryland
HHEFA,
Stevenson
Univ.
Project,
Series A,
4.00%,
6/1/51
4,305
3,579
Maryland
HHEFA,
Stevenson
Univ.
Project,
Series A,
4.00%,
6/1/55
2,665
2,165
Montgomery
County,
Friends
House
Retirement
Community,
Series A,
5.00%,
7/1/39
405
350
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Montgomery
County,
Friends
House
Retirement
Community,
Series A,
5.375%,
7/1/48
5,145
4,381
Prince
George's
County
Auth.,
Suitland-Naylor
Road,
4.75%,
7/1/36
(3)
1,385
1,392
Prince
George's
County
Auth.,
Suitland-Naylor
Road,
5.00%,
7/1/46
(3)
1,980
1,970
Rockville,
Ingelside
at
King
Farm,
Series A-1,
5.00%,
11/1/31
1,190
1,186
Rockville,
Ingelside
at
King
Farm,
Series A-1,
5.00%,
11/1/37
1,595
1,547
Rockville,
Ingelside
at
King
Farm,
Series A-2,
5.00%,
11/1/35
790
780
Rockville,
Ingelside
at
King
Farm,
Series B,
4.25%,
11/1/37
315
276
Rockville,
Ingelside
at
King
Farm,
Series B,
4.50%,
11/1/43
1,560
1,335
Rockville,
Ingelside
at
King
Farm,
Series B,
5.00%,
11/1/42
2,695
2,489
Rockville,
Ingelside
at
King
Farm,
Series B,
5.00%,
11/1/47
5,250
4,645
Rockville,
Ingleside
at
King
Farm,
5.00%,
11/1/29
395
394
Rockville,
Ingleside
at
King
Farm,
5.00%,
11/1/32
395
392
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/26
1,370
1,338
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/27
1,430
1,375
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/30
1,605
1,466
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/31
880
790
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/36
2,225
1,851
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/42
6,330
4,848
Washington
Suburban
Sanitary
Dist.,
Series A,
VRDN,
BAN,
3.73%,
6/1/24
1,400
1,400
Westminster,
Lutheran
Village
at
Millers
Grant,
Series A,
5.00%,
7/1/24
355
355
Westminster,
Lutheran
Village
at
Millers
Grant,
Series A,
6.25%,
7/1/44
2,885
2,885
170,927
MASSACHUSETTS
0.6%
Massachusetts
Dev.
Fin.
Agency,
Boston
Univ.,
Series P,
5.45%,
5/15/59
(6)
2,000
2,225
Massachusetts
Dev.
Fin.
Agency,
Children
Hosp.,
Series U-1,
VRDN,
3.65%,
3/1/48
2,000
2,000
Massachusetts
Dev.
Fin.
Agency,
Children
Hosp.,
Series U-2,
VRDN,
3.65%,
3/1/48
2,000
2,000
Massachusetts
Dev.
Fin.
Agency,
Milford
Regional
Medical
Center,
Series F,
5.625%,
7/15/36
480
480
Massachusetts
Dev.
Fin.
Agency,
Milford
Regional
Medical
Center,
Series F,
5.75%,
7/15/43
2,600
2,600
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Massachusetts
Dev.
Fin.
Agency,
NewBridge
on
the
Charles,
5.00%,
10/1/47
(3)
3,000
2,975
Massachusetts
Dev.
Fin.
Agency,
NewBridge
on
the
Charles,
5.00%,
10/1/57
(3)
5,290
5,066
Massachusetts
Dev.
Fin.
Agency,
Salem
Community,
5.25%,
1/1/50
2,120
1,850
19,196
MICHIGAN
1.2%
Calhoun
County
Hosp.
Fin.
Auth.,
Oaklawn
Hosp.,
5.00%,
2/15/37
790
796
Calhoun
County
Hosp.
Fin.
Auth.,
Oaklawn
Hosp.,
5.00%,
2/15/41
4,510
4,466
Calhoun
County
Hosp.
Fin.
Auth.,
Oaklawn
Hosp.,
5.00%,
2/15/47
12,580
11,970
Detroit,
GO,
5.00%,
4/1/29
570
594
Detroit,
GO,
5.00%,
4/1/30
555
577
Detroit,
GO,
5.00%,
4/1/31
595
618
Detroit,
GO,
5.00%,
4/1/32
670
695
Detroit,
GO,
5.00%,
4/1/33
950
986
Detroit,
GO,
5.00%,
4/1/37
2,280
2,343
Detroit,
GO,
5.00%,
4/1/38
1,110
1,136
Detroit,
Series A,
GO,
5.00%,
4/1/50
1,810
1,827
Grand
Rapids
Economic
Dev.,
Beacon
Hill
at
Eastgate,
5.00%,
11/1/32
1,665
1,637
Grand
Rapids
Economic
Dev.,
Beacon
Hill
at
Eastgate,
5.00%,
11/1/37
945
896
Grand
Rapids
Economic
Dev.,
Beacon
Hill
at
Eastgate,
5.00%,
11/1/47
2,195
1,922
Grand
Rapids
Economic
Dev.,
Beacon
Hill
at
Eastgate,
5.00%,
11/1/52
940
804
Ivywood
Classical
Academy,
Public
School,
6.00%,
1/1/54
3,890
3,831
Michigan
Fin.
Auth.,
Henry
Ford
Health
System,
Series A,
4.00%,
11/15/50
1,875
1,708
Michigan
Tobacco
Settlement
Fin.
Auth.,
Series B,
Zero
Coupon,
6/1/52
20,180
2,614
39,420
MINNESOTA
0.1%
Deephaven,
Seven
Hills
Preparatory
Academy,
Series A,
5.00%,
10/1/37
415
391
Deephaven,
Seven
Hills
Preparatory
Academy,
Series A,
5.00%,
10/1/49
790
685
Minneapolis,
Fairview
Health
Services,
Series C,
VRDN,
3.60%,
11/15/48
470
470
Woodbury,
Woodbury
Leadership
Project,
4.00%,
7/1/41
670
540
Woodbury,
Woodbury
Leadership
Project,
4.00%,
7/1/51
520
381
Woodbury,
Woodbury
Leadership
Project,
4.00%,
7/1/56
455
323
2,790
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
MISSOURI
2.2%
HEFA
of
Missouri,
Mercy
Health,
5.50%,
12/1/48
2,980
3,348
HEFA
of
Missouri,
SSM
Health,
Series F,
VRDN,
3.78%,
6/1/36
4,100
4,100
Kansas
City
IDA,
Kansas
City
Int'l.
Airport,
4.00%,
3/1/50
(5)(7)
1,980
1,859
Kansas
City
IDA,
Kansas
City
Int'l.
Airport,
4.00%,
3/1/57
(5)(7)
10,000
9,185
Kansas
City
IDA,
Kansas
City
Int'l.
Airport,
Series B,
5.00%,
3/1/54
(5)
3,955
4,005
Kirkwood
IDA,
Aberdeen
Heights,
5.25%,
5/15/37
1,585
1,371
Kirkwood
IDA,
Aberdeen
Heights,
5.25%,
5/15/42
1,345
1,101
Kirkwood
IDA,
Aberdeen
Heights,
5.25%,
5/15/50
3,165
2,433
Saint
Louis
County
IDA,
Friendship
Village,
5.00%,
9/1/48
1,685
1,534
Saint
Louis
County
IDA,
Friendship
Village,
Series A,
5.00%,
9/1/38
3,760
3,718
Saint
Louis
County
IDA,
Friendship
Village,
Series A,
5.125%,
9/1/48
12,270
11,375
Saint
Louis
County
IDA,
Nazareth
Living
Center,
Series A,
5.00%,
8/15/30
790
761
Saint
Louis
County
IDA,
Nazareth
Living
Center,
Series A,
5.00%,
8/15/35
555
513
Saint
Louis
County
IDA,
Nazareth
Living
Center,
Series A,
5.125%,
8/15/45
1,345
1,155
Saint
Louis
County
IDA,
Saint
Andrews
Resources
for
Seniors,
5.00%,
12/1/35
1,585
1,521
Saint
Louis
County
IDA,
Saint
Andrews
Resources
for
Seniors,
Series A,
5.125%,
12/1/45
1,680
1,490
Saint
Louis
IDA,
Ballpark
Village,
Series A,
3.875%,
11/15/29
605
539
Saint
Louis
IDA,
Ballpark
Village,
Series A,
4.375%,
11/15/35
2,170
1,790
Saint
Louis
IDA,
Ballpark
Village,
Series A,
4.75%,
11/15/47
2,600
1,988
Saint
Louis
Land
Clearance
for
Redev.
Auth.,
National
Geospatial
Intelligence
Agency,
5.125%,
6/1/46
3,975
4,005
Saint
Louis
Land
Clearance
for
Redev.
Auth.,
National
Geospatial
Intelligence
Agency,
5.375%,
6/1/43
11,595
11,809
Taney
County
IDA,
6.00%,
10/1/49
(3)
3,500
3,508
73,108
MONTANA
0.3%
Kalispell,
Immanuel
Lutheran,
Series A,
5.25%,
5/15/37
545
492
Kalispell,
Immanuel
Lutheran,
Series A,
5.25%,
5/15/47
5,740
4,720
Kalispell,
Immanuel
Lutheran,
Series A,
5.25%,
5/15/52
5,975
4,788
10,000
NEBRASKA
0.0%
Central
Plains
Energy
Project,
Series 1,
VRDN,
5.00%,
5/1/53
(Tender
10/1/29)
1,145
1,202
1,202
NEVADA
0.4%
Las
Vegas
Redev.
Agency,
5.00%,
6/15/30
325
333
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Las
Vegas
Redev.
Agency,
5.00%,
6/15/40
3,585
3,646
Las
Vegas
Redev.
Agency,
5.00%,
6/15/45
6,290
6,366
Reno,
Retrac-Reno
Transportation,
5.00%,
6/1/33
(7)
160
173
Reno,
Retrac-Reno
Transportation,
5.00%,
6/1/36
200
213
Reno,
Retrac-Reno
Transportation,
5.00%,
6/1/37
395
419
Reno,
Retrac-Reno
Transportation,
5.00%,
6/1/38
(7)
80
85
Reno,
Retrac-Reno
Transportation,
5.00%,
6/1/48
395
408
Reno,
Retrac-Reno
Transportation,
Series C,
Zero
Coupon,
7/1/58
(3)
11,000
1,456
13,099
NEW
HAMPSHIRE
0.4%
New
Hampshire
Business
Fin.
Auth.,
Series B,
VRDN,
3.75%,
7/1/45
(Tender
7/2/40)
(3)(5)
3,245
2,526
New
Hampshire
Business
Fin.
Auth.,
Vista
Project,
Series A,
5.25%,
7/1/39
(3)
1,245
1,154
New
Hampshire
Business
Fin.
Auth.,
Vista
Project,
Series A,
5.625%,
7/1/46
(3)
690
631
New
Hampshire
Business
Fin.
Auth.,
Vista
Project,
Series A,
5.75%,
7/1/54
(3)
1,725
1,567
New
Hampshire
HEFA,
Hillside
Villiage,
Series A,
6.125%,
7/1/37
(1)(2)(3)
1,099
22
New
Hampshire
HEFA,
Hillside
Villiage,
Series A,
6.125%,
7/1/52
(1)(2)(3)
2,702
54
New
Hampshire
HEFA,
Hillside
Villiage,
Series A,
6.25%,
7/1/42
(1)(2)(3)
1,628
33
New
Hampshire
HEFA,
Kendel
at
Hanover,
5.00%,
10/1/36
630
641
New
Hampshire
HEFA,
Kendel
at
Hanover,
5.00%,
10/1/40
595
600
New
Hampshire
HEFA,
Kendel
at
Hanover,
5.00%,
10/1/46
4,835
4,828
12,056
NEW
JERSEY
2.6%
Essex
County
Improvement
Auth.,
The
Friends
of
Team
Charter
Schools,
4.00%,
6/15/46
1,555
1,424
Essex
County
Improvement
Auth.,
The
Friends
of
Team
Charter
Schools,
4.00%,
6/15/56
1,760
1,531
Gloucester
County
Pollution
Control
Fin.
Auth.,
Keystone
Urban
Renewal,
Series A,
PCR,
5.00%,
12/1/24
(5)(12)
910
912
New
Jersey
Economic
Dev.
Auth.,
Barnabas
Health,
Series A,
Zero
Coupon,
7/1/26
(11)(12)
1,980
1,843
New
Jersey
Economic
Dev.
Auth.,
Beloved
Commonwealth
Charter
School,
Series A,
5.00%,
6/15/49
(3)
900
838
New
Jersey
Economic
Dev.
Auth.,
Continental
Airlines,
Series B,
5.625%,
11/15/30
(5)
2,125
2,146
New
Jersey
Economic
Dev.
Auth.,
Lions
Gate,
5.25%,
1/1/44
3,880
3,635
New
Jersey
Economic
Dev.
Auth.,
Middlesex
Water,
5.00%,
8/1/59
(5)
1,605
1,661
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
New
Jersey
Economic
Dev.
Auth.,
Port
Newark
Container
Terminal,
5.00%,
10/1/47
(5)
14,475
14,644
New
Jersey
Economic
Dev.
Auth.,
Provident
Group-Rowan
Properties,
Series A,
5.00%,
1/1/30
1,585
1,587
New
Jersey
Economic
Dev.
Auth.,
Provident
Group-Rowan
Properties,
Series A,
5.00%,
1/1/48
9,565
9,006
New
Jersey
Economic
Dev.
Auth.,
Transit
Transportation
Project,
4.00%,
11/1/44
6,445
6,379
New
Jersey
Economic
Dev.
Auth.,
UMM
Energy
Partners,
Series A,
5.00%,
6/15/37
(5)
990
990
New
Jersey
Economic
Dev.
Auth.,
UMM
Energy
Partners,
Series A,
5.125%,
6/15/43
(5)
1,385
1,385
New
Jersey
EFA,
Green
Bond,
Series A,
5.00%,
7/1/40
3,130
3,284
New
Jersey
Transportation
Trust
Fund
Auth.,
5.25%,
6/15/46
2,615
2,877
New
Jersey
Transportation
Trust
Fund
Auth.,
5.50%,
6/15/50
1,875
2,078
New
Jersey
Transportation
Trust
Fund
Auth.,
Series A,
4.00%,
6/15/42
790
791
New
Jersey
Transportation
Trust
Fund
Auth.,
Series A,
5.25%,
6/15/41
650
738
New
Jersey
Transportation
Trust
Fund
Auth.,
Series A,
5.25%,
6/15/42
1,000
1,127
New
Jersey
Transportation
Trust
Fund
Auth.,
Series AA,
4.25%,
6/15/44
2,000
2,026
New
Jersey
Transportation
Trust
Fund
Auth.,
Series AA,
5.00%,
6/15/36
790
903
New
Jersey
Transportation
Trust
Fund
Auth.,
Transportation
System,
Series A,
Zero
Coupon,
12/15/28
11,870
10,206
New
Jersey
Transportation
Trust
Fund
Auth.,
Transportation
System,
Series AA,
5.25%,
6/15/43
2,710
2,861
New
Jersey
Transportation
Trust
Fund
Auth.,
Transportation
System,
Series C,
Zero
Coupon,
12/15/30
(11)
3,580
2,888
New
Jersey
Turnpike
Auth.,
Series A,
4.00%,
1/1/35
(10)
5,000
5,352
Tobacco
Settlement
Fin.,
Series A,
5.25%,
6/1/46
5,000
5,183
88,295
NEW
YORK
5.1%
Build
New
York
City
Resource,
Friends
of
Hellenic
Classical,
Series A,
5.00%,
12/1/41
(3)
1,135
1,050
Build
New
York
City
Resource,
Friends
of
Hellenic
Classical,
Series A,
5.00%,
12/1/51
(3)
1,260
1,094
Build
New
York
City
Resource,
Friends
of
Hellenic
Classical,
Series A,
5.00%,
12/1/55
(3)
830
709
Build
New
York
City
Resource,
Inwood
Academy
Leadership
Charter
School,
Series A,
5.50%,
5/1/48
(3)
460
461
Build
New
York
City
Resource,
Pratt
Paper,
4.50%,
1/1/25
(3)(5)
185
185
Build
New
York
City
Resource,
Pratt
Paper,
5.00%,
1/1/35
(3)(5)
9,890
9,946
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Build
New
York
City
Resource,
Richmond
Preparatory
Charter
School
Project,
Series A,
5.00%,
6/1/36
(3)
425
429
Build
New
York
City
Resource,
Richmond
Preparatory
Charter
School
Project,
Series A,
5.00%,
6/1/41
(3)
550
539
Build
New
York
City
Resource,
Richmond
Preparatory
Charter
School
Project,
Series A,
5.00%,
6/1/51
(3)
1,980
1,854
Build
New
York
City
Resource,
Shefa
School
Project,
Series A,
2.50%,
6/15/31
(3)
650
559
Build
New
York
City
Resource,
Shefa
School
Project,
Series A,
5.00%,
6/15/51
(3)
13,110
11,930
Dormitory
Auth.
of
the
State
of
New
York,
Series A,
5.00%,
3/15/46
5,205
5,687
Glen
Cove
Local
Economic
Assistance,
Garvies
Point,
Series A,
5.00%,
1/1/56
5,105
4,572
Glen
Cove
Local
Economic
Assistance,
Garvies
Point,
Series B,
Zero
Coupon,
1/1/45
21,735
6,098
Glen
Cove
Local
Economic
Assistance,
Garvies
Point,
Series C,
5.625%,
1/1/55
7,610
6,891
Nassau
County
IDA,
Amsterdam
at
Harborside,
Series A,
9.00%,
1/1/41
(1)(2)(3)
6,655
6,655
Nassau
County
IDA,
Amsterdam
at
Harborside,
Series B,
VR,
5.00%,
1/1/58
(2)
13,414
4,017
New
York
City
Ind.
Dev.
Agency,
Queens
Baseball
Stadium
Project,
Series A,
3.00%,
1/1/46
(7)
5,250
4,171
New
York
City
Municipal
Water
Fin.
Auth.,
Water
&
Sewer
System,
Series BB1,
3.00%,
6/15/50
5,000
3,930
New
York
Dormitory
Auth.,
Garnet
Health
Medical
Center,
5.00%,
12/1/30
(3)
1,000
974
New
York
Dormitory
Auth.,
Garnet
Health
Medical
Center,
5.00%,
12/1/31
(3)
800
774
New
York
Dormitory
Auth.,
Garnet
Health
Medical
Center,
5.00%,
12/1/34
(3)
800
755
New
York
Dormitory
Auth.,
Garnet
Health
Medical
Center,
5.00%,
12/1/36
(3)
1,400
1,276
New
York
Liberty
Dev.,
3
World
Trade
Center,
Class
2,
5.15%,
11/15/34
(3)
5,040
5,059
New
York
Liberty
Dev.,
3
World
Trade
Center,
Class
2,
5.375%,
11/15/40
(3)
10,000
10,033
New
York
Liberty
Dev.,
Goldman
Sachs
Headquarters,
5.25%,
10/1/35
24,740
29,372
New
York
State
Urban
Dev.,
Personal
Income
Tax,
3.00%,
3/15/48
5,000
3,968
New
York
Transportation
Dev.,
American
Airlines,
3.00%,
8/1/31
(5)
2,375
2,208
New
York
Transportation
Dev.,
American
Airlines,
5.00%,
8/1/31
(5)
12,445
12,445
New
York
Transportation
Dev.,
Delta
Airlines,
LaGuardia
Airport,
5.00%,
10/1/35
(5)
4,945
5,210
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
New
York
Transportation
Dev.,
Delta
Airlines,
LaGuardia
Airport,
5.00%,
10/1/40
(5)
3,005
3,096
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.00%,
12/1/39
(5)
1,955
2,072
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.00%,
12/1/40
(5)
1,290
1,359
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.00%,
12/1/41
(5)
1,290
1,353
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.00%,
12/1/42
(5)
1,290
1,347
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.25%,
8/1/31
(5)
1,805
1,901
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
5.375%,
8/1/36
(5)
2,535
2,645
New
York
Transportation
Dev.,
JFK
Int'l.
Airport,
6.00%,
6/30/54
(5)
6,750
7,430
Westchester
County
Local
Dev.,
Pace
Univ.,
Series A,
5.50%,
5/1/42
8,000
8,006
172,060
NORTH
CAROLINA
1.7%
Forsyth
County,
Series B,
GO,
2.00%,
3/1/39
4,585
3,468
Greater
Asheville
Regional
Airport
Auth.,
Series A,
5.50%,
7/1/47
(5)(7)
9,515
10,467
North
Carolina
Housing
Fin.
Agency,
5.00%,
7/1/47
1,585
1,623
North
Carolina
Medical
Care
Commission,
Series C,
4.00%,
3/1/36
1,835
1,648
North
Carolina
Medical
Care
Commission,
Series C,
4.00%,
3/1/42
3,870
3,177
North
Carolina
Medical
Care
Commission,
Aldersgate
Retirement
Community,
4.70%,
7/1/37
2,180
1,839
North
Carolina
Medical
Care
Commission,
Aldersgate
Retirement
Community,
4.875%,
7/1/40
4,245
3,494
North
Carolina
Medical
Care
Commission,
Aldersgate
Retirement
Community,
5.00%,
7/1/45
3,525
2,792
North
Carolina
Medical
Care
Commission,
Aldersgate
United
Methodist,
Series A,
5.00%,
7/1/47
925
720
North
Carolina
Medical
Care
Commission,
Everyage,
Series A,
4.00%,
9/1/41
865
733
North
Carolina
Medical
Care
Commission,
Everyage,
Series A,
4.00%,
9/1/47
770
616
North
Carolina
Medical
Care
Commission,
Everyage,
Series A,
4.00%,
9/1/51
765
595
North
Carolina
Medical
Care
Commission,
Lutheran
Services,
4.00%,
3/1/51
1,980
1,462
North
Carolina
Medical
Care
Commission,
Salemtowne,
5.25%,
10/1/37
730
688
North
Carolina
Medical
Care
Commission,
Salemtowne,
5.375%,
10/1/45
9,295
8,298
North
Carolina
Medical
Care
Commission,
Southminster,
5.00%,
10/1/37
1,225
1,207
North
Carolina
Medical
Care
Commission,
United
Church
Homes,
Series A,
5.00%,
9/1/37
(Prerefunded
9/1/24)
(13)
1,660
1,674
North
Carolina
Turnpike
Auth.,
Series A,
5.00%,
7/1/47
4,510
4,572
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
North
Carolina
Turnpike
Auth.,
Series A,
5.00%,
7/1/54
6,845
6,919
55,992
OHIO
6.0%
Buckeye
Tobacco
Settlement
Fin.
Auth.,
Series B-2,
Class
2,
5.00%,
6/1/55
112,185
106,900
Cleveland-Cuyahoga
County
Port
Auth.,
Playhouse
Square
Foundation,
5.50%,
12/1/43
1,345
1,363
Cleveland-Cuyahoga
County
Port
Auth.,
Playhouse
Square
Foundation,
5.50%,
12/1/53
7,720
7,745
Cuyahoga
County,
MetroHealth
System,
5.00%,
2/15/42
3,560
3,581
Cuyahoga
County,
MetroHealth
System,
5.00%,
2/15/57
2,375
2,328
Cuyahoga
County,
MetroHealth
System,
5.50%,
2/15/52
15,790
15,999
Cuyahoga
County,
MetroHealth
System,
5.50%,
2/15/57
12,900
13,023
Franklin
County
Convention
Fac.
Auth.,
Greater
Columbus
Convention
Center,
5.00%,
12/1/44
4,635
4,457
Franklin
County
Convention
Fac.
Auth.,
Greater
Columbus
Convention
Center,
5.00%,
12/1/51
5,955
5,598
Marion
County,
United
Church
Homes,
5.00%,
12/1/39
1,310
1,102
Marion
County,
United
Church
Homes,
5.125%,
12/1/49
1,445
1,139
Muskingum
County,
Genesis
Healthcare,
5.00%,
2/15/44
3,955
3,665
Ohio,
Series A,
4.00%,
1/15/38
845
853
Ohio,
Series A,
4.00%,
1/15/39
1,585
1,591
Ohio,
Series A,
5.00%,
1/15/50
1,980
2,078
Ohio
Air
Quality
Dev.
Auth.,
Ohio
Valley
Electric,
3.25%,
9/1/29
6,885
6,606
Ohio
Air
Quality
Dev.
Auth.,
Pratt
Paper,
4.50%,
1/15/48
(3)(5)
1,585
1,514
Ohio
Air
Quality
Dev.
Auth.,
Vanadium
Project,
5.00%,
7/1/49
(3)
(5)
16,000
14,547
Ohio
Housing
Fin.
Agency,
Sanctuary
at
Springboro,
5.45%,
1/1/38
(3)
2,250
1,794
Summit
County
DFA,
Akron
Parking
Project,
5.625%,
12/1/48
2,350
2,490
Summit
County
DFA,
Akron
Parking
Project,
6.00%,
12/1/58
1,650
1,768
200,141
OKLAHOMA
1.4%
Norman
Regional
Hosp.
Auth.,
4.00%,
9/1/45
6,565
5,526
Oklahoma
County
Fin.
Auth.,
Epworth
Villa,
Series B,
5.875%,
12/1/47
6,094
4,839
Oklahoma
County
Fin.
Auth.,
Epworth
Villa,
Series C,
2.00%,
12/1/47
1,254
64
Oklahoma
DFA,
OU
Medicine,
Series B,
5.25%,
8/15/48
4,455
4,501
Oklahoma
DFA,
OU
Medicine,
Series B,
5.50%,
8/15/57
9,005
9,134
Oklahoma
Turnpike
Auth.,
Senior,
4.50%,
1/1/53
2,525
2,587
Oklahoma
Turnpike
Auth.,
Senior,
5.50%,
1/1/53
10,050
11,196
Tulsa
Airports
Improvement
Trust,
Series C,
5.50%,
12/1/35
(5)
8,705
8,706
46,553
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
OREGON
0.2%
Clackamas
County
Hosp.
Fac.
Auth.,
Williamette
View,
Series A,
5.00%,
11/15/32
395
398
Clackamas
County
Hosp.
Fac.
Auth.,
Williamette
View,
Series A,
5.00%,
11/15/37
395
390
Clackamas
County
Hosp.
Fac.
Auth.,
Williamette
View,
Series A,
5.00%,
11/15/47
1,110
1,033
Clackamas
County
Hosp.
Fac.
Auth.,
Williamette
View,
Series A,
5.00%,
11/15/52
1,190
1,087
Oregon
State
Fac.
Auth.,
Legacy
Health
Project,
Series A,
5.00%,
6/1/52
3,800
4,011
Yamhill
County
Hosp.
Auth.,
Friendsview
Retirement
Community,
Series A,
4.00%,
11/15/26
180
174
Yamhill
County
Hosp.
Auth.,
Friendsview
Retirement
Community,
Series A,
5.00%,
11/15/31
275
266
Yamhill
County
Hosp.
Auth.,
Friendsview
Retirement
Community,
Series A,
5.00%,
11/15/36
360
330
7,689
PENNSYLVANIA
4.8%
Allegheny
County
IDA,
U.S.
Steel,
4.875%,
11/1/24
960
962
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/28
245
257
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/30
265
282
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/31
535
574
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/32
875
945
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/33
630
679
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/34
595
640
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.00%,
5/1/35
670
717
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
5.25%,
5/1/42
(3)
6,230
6,213
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
Center
City,
5.00%,
5/1/32
(3)
2,750
2,810
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
Center
City,
5.00%,
5/1/42
(3)
4,975
4,973
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
Center
City,
5.375%,
5/1/42
(3)
7,540
7,430
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
Center
City,
Series 2017,
5.00%,
5/1/42
(3)
7,125
7,123
Allentown
Neighborhood
Improvement
Zone
Dev.
Auth.,
Center
City,
Series 2024,
5.00%,
5/1/42
(3)
2,590
2,595
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Butler
County
Hosp.
Auth.,
5.00%,
7/1/35
6,645
6,684
Butler
County
Hosp.
Auth.,
5.00%,
7/1/39
3,760
3,755
Cumberland
County
Municipal
Auth.,
Asbury
Pennsylvania
Obligated,
4.50%,
1/1/36
(3)
3,140
2,882
Cumberland
County
Municipal
Auth.,
Asbury
Pennsylvania
Obligated,
4.50%,
1/1/40
(3)
3,790
3,305
Cumberland
County
Municipal
Auth.,
Asbury
Pennsylvania
Obligated,
4.50%,
1/1/41
(3)
3,330
2,872
East
Hempfield
Township
IDA,
Student
Services,
Student
Housing,
5.00%,
7/1/30
(Prerefunded
7/1/25)
(13)
650
665
East
Hempfield
Township
IDA,
Student
Services,
Student
Housing,
5.00%,
7/1/35
(Prerefunded
7/1/25)
(13)
840
859
East
Hempfield
Township
IDA,
Student
Services,
Student
Housing,
5.00%,
7/1/47
(Prerefunded
7/1/25)
(13)
5,935
6,071
Franklin
County
IDA,
Menno-Haven,
5.00%,
12/1/43
950
812
Franklin
County
IDA,
Menno-Haven,
5.00%,
12/1/48
1,025
844
Franklin
County
IDA,
Menno-Haven,
5.00%,
12/1/53
1,110
886
Lancaster
County
Hosp.
Auth.,
Brethren
Village,
5.25%,
7/1/35
200
197
Lancaster
County
Hosp.
Auth.,
Brethren
Village,
5.50%,
7/1/45
790
759
Montgomery
County
Higher
Ed.
&
Health
Auth.,
Thomas
Jefferson
Univ.,
5.00%,
9/1/43
3,995
4,122
Montgomery
County
IDA,
Hill
at
Whitemarsh,
5.25%,
1/1/40
2,770
2,541
Montgomery
County
IDA,
Hill
at
Whitemarsh,
5.375%,
1/1/50
5,335
4,654
Pennsylvania
Economic
DFA,
5.50%,
6/30/40
(5)
3,155
3,546
Pennsylvania
Economic
DFA,
5.50%,
6/30/41
(5)
1,840
2,058
Pennsylvania
Economic
DFA,
5.50%,
6/30/43
(5)
1,840
2,040
Pennsylvania
Economic
DFA,
5.75%,
6/30/48
(5)
10,865
12,104
Pennsylvania
Economic
DFA,
6.00%,
6/30/61
(5)
7,800
8,826
Pennsylvania
Economic
DFA,
Consol
Energy,
VRDN,
9.00%,
4/1/51
(Tender
4/13/28)
(3)(5)
9,120
10,102
Pennsylvania
Economic
DFA,
Covanta
Project,
3.25%,
8/1/39
(3)
(5)
3,265
2,413
Pennsylvania
Economic
DFA,
National
Gypsum,
5.50%,
11/1/44
(5)
6,905
6,928
Pennsylvania
Higher
Ed.
Fac.
Auth.,
Indiana
Univ.
Student
Housing,
Series A,
FRN,
67%
of
3M
USD
LIBOR
+
0.65%,
4.396%,
7/1/39
(6)
6,650
5,796
Pennsylvania
Higher
Ed.
Fac.
Auth.,
Widener
Univ.,
5.00%,
7/15/38
1,900
1,904
Pennsylvania
Turnpike
Commission,
Series A,
4.00%,
12/1/49
(7)
10,000
9,893
Pennsylvania
Turnpike
Commission,
Series B,
5.25%,
12/1/52
4,565
5,039
Philadelphia
Higher
Ed.
Fac.
Auth.,
Temple
Univ.
Health
System,
5.00%,
7/1/28
3,955
4,080
Philadelphia
Higher
Ed.
Fac.
Auth.,
Temple
Univ.
Health
System,
5.00%,
7/1/30
790
814
Philadelphia
IDA,
Wesley
Enhanced
Living,
5.00%,
7/1/37
2,485
2,197
Philadelphia
IDA,
Wesley
Enhanced
Living,
5.00%,
7/1/42
1,680
1,420
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Philadelphia
IDA,
Wesley
Enhanced
Living,
5.00%,
7/1/49
2,840
2,303
159,571
PUERTO
RICO
10.4%
Puerto
Rico
Commonwealth,
GO,
VR,
11/1/43
(15)
28,385
16,606
Puerto
Rico
Commonwealth,
GO,
VR,
11/1/51
(15)
14,095
8,369
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series 2021A,
4.00%,
7/1/42
(3)
4,190
3,842
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series 2021A,
5.00%,
7/1/33
(3)
2,150
2,242
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series 2021A,
5.00%,
7/1/37
(3)
1,105
1,136
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
4.00%,
7/1/42
(3)
5,975
5,478
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
4.00%,
7/1/47
(3)
2,030
1,783
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/24
(3)
580
582
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/25
(3)
2,675
2,705
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/28
(3)
2,740
2,830
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/29
(3)
2,865
2,965
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/30
(3)
10,000
10,378
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/35
(3)
9,495
9,801
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/37
(3)
6,765
6,978
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/47
(3)
22,955
23,139
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
6.125%,
7/1/24
474
477
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
4.00%,
7/1/42
(3)
5,625
5,158
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
4.00%,
7/1/47
(3)
4,605
4,044
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/24
(3)
1,325
1,329
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/25
(3)
2,780
2,811
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/29
(3)
3,525
3,648
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/37
(3)
13,520
13,903
Puerto
Rico
Commonwealth,
Restructured,
Series A,
GO,
Zero
coupon,
7/1/24
1,048
1,034
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Puerto
Rico
Commonwealth,
Restructured,
Series A,
GO,
Zero
coupon,
7/1/33
8,280
5,326
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/33
10,975
10,757
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/35
8,948
8,662
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/37
11,792
11,228
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/41
6,748
6,245
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.375%,
7/1/25
11,338
11,507
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/27
9,406
9,928
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.75%,
7/1/31
18,721
20,871
Puerto
Rico
Electric
Power
Auth.,
Series A,
5.00%,
7/1/29
(1)(16)
4,780
1,255
Puerto
Rico
Electric
Power
Auth.,
Series A,
5.05%,
7/1/42
(1)(16)
95
25
Puerto
Rico
Electric
Power
Auth.,
Series A,
6.75%,
7/1/36
(1)(16)
8,215
2,156
Puerto
Rico
Electric
Power
Auth.,
Series AAA,
5.25%,
7/1/27
(1)
(16)
1,145
301
Puerto
Rico
Electric
Power
Auth.,
Series AAA,
5.25%,
7/1/29
(1)
(16)
3,955
1,038
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.00%,
7/1/21
(1)
(16)
1,605
421
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.00%,
7/1/27
(1)
(16)
135
35
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.25%,
7/1/26
(1)
(16)
1,600
420
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.25%,
7/1/27
(1)
(16)
2,300
604
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.25%,
7/1/28
(1)
(16)
2,745
721
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/20
(1)(16)
470
123
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/24
(1)(16)
1,810
475
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/25
(1)(16)
610
160
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/26
(1)(16)
730
192
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/27
(1)(16)
95
25
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.25%,
7/1/33
(1)
(16)
455
119
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.50%,
7/1/18
(1)
(16)
390
102
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.50%,
7/1/38
(1)
(16)
3,955
1,038
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.25%,
7/1/27
(1)(16)
165
43
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.25%,
7/1/35
(1)(16)
3,466
910
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.25%,
7/1/40
(1)(16)
790
207
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.75%,
7/1/36
(1)(16)
1,135
298
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
3.70%,
7/1/17
(1)(16)
110
29
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.00%,
7/1/17
(1)(16)
195
51
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.00%,
7/1/19
(1)(16)
1,960
515
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.00%,
7/1/28
(1)(16)
155
41
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/19
(1)(16)
1,460
383
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/23
(1)(16)
420
110
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/24
(1)(16)
169
44
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/26
(1)(16)
3,820
1,003
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
4.55%,
7/1/40
59
59
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
4.75%,
7/1/53
19,070
19,033
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
5.00%,
7/1/58
4,840
4,864
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/27
5,919
5,241
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/29
9,626
7,915
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/33
11,267
7,867
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/46
181,265
58,787
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/51
20,231
4,862
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-2,
4.329%,
7/1/40
1,980
1,966
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-2,
4.536%,
7/1/53
2,365
2,285
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-2,
4.784%,
7/1/58
4,775
4,751
Puerto
Rico
Sales
Tax
Fin.,
Restructured
Cofina,
Series A-2,
4.329%,
7/1/40
2,125
2,110
348,346
RHODE
ISLAND
0.2%
Central
Falls
Detention
Fac.,
7.25%,
7/15/35
(1)(2)
9,960
3,984
Rhode
Island
Health
&
Ed.
Building,
Care
New
England,
Series B,
5.00%,
9/1/36
3,955
3,826
7,810
SOUTH
CAROLINA
1.0%
Connector
2000
Assoc.,
Series A-1,
Zero
Coupon,
1/1/32
(1)
5,826
3,471
Connector
2000
Assoc.,
Series A-1,
Zero
Coupon,
1/1/42
(1)
25,626
7,543
Connector
2000
Assoc.,
Series A-1,
Zero
Coupon,
7/22/51
(1)
44,029
5,883
Connector
2000
Assoc.,
Series B-1,
Zero
Coupon,
1/1/32
(1)
3,113
1,232
Connector
2000
Assoc.,
Series B-1,
Zero
Coupon,
7/22/51
(1)
17,627
1,223
Connector
2000
Assoc.,
Series C-1,
Zero
Coupon,
7/22/51
(1)
1,749
63
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
South
Carolina
Jobs-Economic
Dev.
Auth.,
Repower
South
Berkeley,
5.25%,
2/1/27
(1)(2)(3)(5)
850
85
South
Carolina
Jobs-Economic
Dev.
Auth.,
Repower
South
Berkeley,
6.00%,
2/1/35
(1)(2)(3)(5)
5,035
504
South
Carolina
Jobs-Economic
Dev.
Auth.,
Repower
South
Berkeley,
6.25%,
2/1/45
(1)(2)(3)(5)
10,115
1,011
South
Carolina
Jobs-Economic
Dev.
Auth.,
Repower
South
Berkeley,
8.00%,
12/6/29
(1)(2)
1,585
1,268
South
Carolina
Public
Service
Auth.,
Unrefunded
Balance,
Series A,
5.50%,
12/1/54
10,000
10,013
32,296
SOUTH
DAKOTA
0.1%
Sioux
Falls
Health
Fac.,
Dow
Rummel
Village,
5.00%,
11/1/28
1,135
1,130
Sioux
Falls
Health
Fac.,
Dow
Rummel
Village,
5.00%,
11/1/30
1,215
1,201
Sioux
Falls
Health
Fac.,
Dow
Rummel
Village,
5.00%,
11/1/32
1,080
1,057
Sioux
Falls
Health
Fac.,
Dow
Rummel
Village,
5.00%,
11/1/42
1,585
1,403
4,791
TENNESSEE
0.7%
Chattanooga
Health
Ed.
&
Housing
Fac.
Board,
Student
Housing,
CDFI
Phase
1,
5.00%,
10/1/35
2,180
2,207
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Ed.
Fac.
Board,
5.25%,
5/1/53
3,850
4,158
Metropolitan
Nashville
Airport
Auth.,
Series B,
5.50%,
7/1/52
(5)
2,680
2,920
Shelby
County
Health
Ed.
&
Housing
Fac.
Board,
Village
at
Germantown,
5.00%,
12/1/34
395
381
Shelby
County
Health
Ed.
&
Housing
Fac.
Board,
Village
at
Germantown,
5.25%,
12/1/44
920
849
Shelby
County
Health
Ed.
&
Housing
Fac.
Board,
Village
at
Germantown,
5.25%,
12/1/49
2,650
2,400
Tennessee
Energy
Acquisition,
Series A,
5.25%,
9/1/26
9,435
9,665
22,580
TEXAS
7.0%
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/28
705
719
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/30
1,645
1,680
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/31
2,300
2,348
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/32
2,650
2,704
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/33
2,475
2,525
Austin
Convention
Enterprises,
First
Tier
Convention
Center,
Series A,
5.00%,
1/1/34
2,805
2,860
Austin
Convention
Enterprises,
Second
Tier
Convention
Center,
Series B,
5.00%,
1/1/28
395
396
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Austin
Convention
Enterprises,
Second
Tier
Convention
Center,
Series B,
5.00%,
1/1/29
910
914
Austin
Convention
Enterprises,
Second
Tier
Convention
Center,
Series B,
5.00%,
1/1/32
1,780
1,788
Austin
Convention
Enterprises,
Second
Tier
Convention
Center,
Series B,
5.00%,
1/1/34
2,515
2,524
Austin
Texas
Airport
System
Revenue,
5.00%,
11/15/43
(5)
920
980
Austin
Texas
Airport
System
Revenue,
5.25%,
11/15/47
(5)
3,935
4,242
Central
Texas
Regional
Mobility
Auth.,
Series B,
5.00%,
1/1/34
420
465
Central
Texas
Regional
Mobility
Auth.,
Series B,
5.00%,
1/1/39
95
103
Central
Texas
Regional
Mobility
Auth.,
Series B,
5.00%,
1/1/46
3,165
3,341
Clifton
Higher
Ed.
Fin.,
Int'l.
Leadership,
Series A,
4.125%,
8/15/49
4,100
3,989
Clifton
Higher
Ed.
Fin.,
Int'l.
Leadership,
Series D,
6.125%,
8/15/48
12,665
12,962
Conroe
Local
Government,
Convention
Center
Hotel,
3.50%,
10/1/31
(3)
255
220
Conroe
Local
Government,
Convention
Center
Hotel,
4.00%,
10/1/50
1,275
992
Conroe
Local
Government,
Convention
Center
Hotel,
5.00%,
10/1/50
(3)
1,375
1,131
Dallas
Fort
Worth
Int'l.
Airport,
Series B,
5.00%,
11/1/47
7,750
8,562
Fort
Bend
County
IDC,
NRG
Energy,
Series B,
4.75%,
11/1/42
3,955
3,955
Gulf
Coast
IDA,
Citgo
Petroleum,
4.875%,
5/1/25
(5)
11,005
11,005
Harris
County
Cultural
Ed.
Fac.
Fin.,
Brazos
Presybyterian
Homes,
Series A,
5.00%,
1/1/38
405
374
Harris
County
Cultural
Ed.
Fac.
Fin.,
Brazos
Presybyterian
Homes,
Series A,
5.00%,
1/1/43
415
370
Harris
County
Health
Fac.
Dev.,
Methodist
Hosp.
System,
Series A-1,
VRDN,
3.75%,
12/1/41
1,250
1,250
Hidalgo
County
Regional
Mobility
Auth.,
Senior
Lien,
Series A,
4.00%,
12/1/38
1,350
1,324
Hidalgo
County
Regional
Mobility
Auth.,
Senior
Lien,
Series A,
4.00%,
12/1/39
845
824
Hidalgo
County
Regional
Mobility
Auth.,
Senior
Lien,
Series A,
4.00%,
12/1/40
845
811
Hidalgo
County
Regional
Mobility
Auth.,
Senior
Lien,
Series A,
4.00%,
12/1/41
845
806
Houston
Airport
System,
Series B-1,
5.00%,
7/15/35
(5)
7,560
7,571
Houston
Airport
System,
United
Airlines,
Series A,
4.00%,
7/1/41
(5)
1,620
1,473
Houston
Airport
System,
United
Airlines,
Series B-1,
4.00%,
7/15/41
(5)
3,955
3,597
Joint
Guadalupe
County
-
Seguin
Hosp.,
5.00%,
12/1/28
1,110
1,112
Joint
Guadalupe
County
-
Seguin
Hosp.,
5.00%,
12/1/30
1,335
1,336
Joint
Guadalupe
County
-
Seguin
Hosp.,
5.00%,
12/1/40
2,305
2,204
Joint
Guadalupe
County
-
Seguin
Hosp.,
5.00%,
12/1/45
5,275
4,876
Joint
Guadalupe
County
-
Seguin
Hosp.,
5.25%,
12/1/35
1,645
1,653
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Mission
Economic
Dev.,
Natgasoline,
Series B,
4.625%,
10/1/31
(3)(5)
15,395
15,341
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/32
435
442
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/33
450
457
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/34
475
482
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/35
440
446
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/36
1,110
1,124
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/38
1,030
1,039
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/43
3,095
3,114
Montgomery
County
Toll
Road
Auth.,
5.00%,
9/15/48
3,105
3,119
New
Hope
Cultural
Ed.
Fac.
Fin.,
Blinn
College,
Series A,
5.00%,
7/1/57
7,915
6,650
New
Hope
Cultural
Ed.
Fac.
Fin.,
Buckingham
Senior
Living,
Series 2021B,
VR,
2.00%,
11/15/61,
(2.00%
PIK)
(1)(8)
5,577
2,075
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing
Collage
Station,
5.00%,
4/1/46
(7)
12,385
12,385
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing
College
Station,
Series A,
5.00%,
4/1/29
4,630
4,632
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing
College
Station,
Series A,
5.00%,
4/1/46
(7)
2,470
2,470
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing,
Denton
Univ.,
Series A-1,
5.00%,
7/1/58
(7)
2,355
2,371
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing,
Tarleton
State
Univ.,
Series A,
5.00%,
4/1/30
(Prerefunded
4/1/25)
(13)
395
402
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing,
Tarleton
State
Univ.,
Series A,
5.00%,
4/1/35
(Prerefunded
4/1/25)
(13)
1,205
1,225
New
Hope
Cultural
Ed.
Fac.
Fin.,
Collegiate
Housing,
Tarleton
State
Univ.,
Series A,
5.00%,
4/1/47
(Prerefunded
4/1/25)
(13)
4,765
4,846
New
Hope
Cultural
Ed.
Fac.
Fin.,
Legacy
Midtown,
Series A,
5.50%,
7/1/54
3,585
2,798
New
Hope
Cultural
Ed.
Fac.
Fin.,
MRC
Crestview,
5.00%,
11/15/36
(Prerefunded
11/15/24)
(13)
435
448
New
Hope
Cultural
Ed.
Fac.
Fin.,
MRC
Crestview,
5.00%,
11/15/46
(Prerefunded
11/15/24)
(13)
1,225
1,262
New
Hope
Cultural
Ed.
Fac.
Fin.,
MRC
Senior
Living,
Langford,
Series A,
5.375%,
11/15/36
395
352
New
Hope
Cultural
Ed.
Fac.
Fin.,
MRC
Senior
Living,
Langford,
Series A,
5.50%,
11/15/46
790
658
New
Hope
Cultural
Ed.
Fac.
Fin.,
MRC
Senior
Living,
Langford,
Series A,
5.50%,
11/15/52
790
641
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.00%,
10/1/31
790
756
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.00%,
10/1/32
370
351
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.00%,
10/1/33
790
743
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.00%,
10/1/34
790
738
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.00%,
10/1/39
1,190
1,018
New
Hope
Cultural
Ed.
Fac.
Fin.,
Presbyterian
Village
North,
5.25%,
10/1/49
4,810
3,907
New
Hope
Cultural
Ed.
Fac.
Fin.,
Texas
A&M
Univ.
Corpus
Christi,
Series A,
5.00%,
4/1/37
(Prerefunded
4/1/27)
(13)
1,345
1,428
New
Hope
Cultural
Ed.
Fac.
Fin.,
Texas
A&M
Univ.
Corpus
Christi,
Series A,
5.00%,
4/1/42
(Prerefunded
4/1/27)
(13)
1,585
1,683
North
Texas
Tollway
Auth.,
Series B,
3.00%,
1/1/51
(9)
7,445
5,505
Port
Beaumont
Navigation
Dist.,
Jefferson
Gulf
Coast,
2.75%,
1/1/36
(3)(5)
900
687
Port
Beaumont
Navigation
Dist.,
Jefferson
Gulf
Coast,
3.00%,
1/1/50
(3)(5)
1,980
1,254
Port
Beaumont
Navigation
Dist.,
Jefferson
Gulf
Coast,
Series A,
3.625%,
1/1/35
(3)(5)
2,645
2,279
Port
Beaumont
Navigation
Dist.,
Jefferson
Gulf
Coast,
Series A,
4.00%,
1/1/50
(3)(5)
6,255
4,798
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Edgemere-Northwest
Senior
Housing,
5.25%,
11/15/47
(1)(14)
1,283
35
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Edgemere-Northwest
Senior
Housing,
Series A,
5.00%,
11/15/45
(1)(14)
6,750
182
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Stayton
at
Museum
Way,
Series A,
5.75%,
12/1/54
(1)(2)
5,878
3,820
Texas
Private
Activity
Bond
Surface
Transportation,
Blueridge
Transportation
Group,
5.00%,
12/31/55
(5)
3,215
3,142
Texas
Private
Activity
Bond
Surface
Transportation,
Segment
3C
Project,
5.00%,
6/30/58
(5)
3,000
3,040
Texas
Private
Activity
Bond
Surface
Transportation,
Tarrant
Express
Project,
5.50%,
12/31/58
(5)
18,150
19,948
Texas
Transportation
Commission,
First
Tier
Toll,
State
Highway,
5.00%,
8/1/57
8,745
8,845
232,924
UTAH
1.3%
Military
Installation
Dev.
Auth.,
Series A-1,
4.00%,
6/1/41
1,800
1,489
Military
Installation
Dev.
Auth.,
Series A-1,
4.00%,
6/1/52
4,000
2,954
Military
Installation
Dev.
Auth.,
Series A-2,
4.00%,
6/1/41
2,485
2,056
Military
Installation
Dev.
Auth.,
Series A-2,
4.00%,
6/1/52
7,550
5,575
Murray
City
Hosp.,
IHC
Health
Services,
Series A,
VRDN,
3.60%,
5/15/37
3,260
3,260
Salt
Lake
City
Airport,
Series A,
5.00%,
7/1/43
(5)
2,765
2,852
Salt
Lake
City
Airport,
Series A,
5.00%,
7/1/46
(5)
14,605
15,297
UIPA
Crossroads
Public
Infrastructure
Dist.,
4.375%,
6/1/52
(3)
10,115
8,797
42,280
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
VIRGINIA
4.1%
Alexandria,
Series A,
GO,
2.00%,
12/15/40
6,150
4,417
Arlington
County
IDA,
Virginia
Hosp.
Center,
3.75%,
7/1/50
1,050
957
Botetourt
County,
Residential
Care
Fac.,
Glebe,
Series A,
6.00%,
7/1/34
5,775
5,794
Chesapeake
Expressway
Toll
Road,
Series B,
4.875%,
7/15/40
5,960
6,131
James
City
County
Economic
Dev.
Auth.
Williamsburg
Landing,
Series C-3,
5.25%,
12/1/27
1,250
1,260
Lynchburg
Economic
Dev.
Auth.,
Central
Health,
Series A,
4.00%,
1/1/47
3,000
2,899
Norfolk
Redev.
&
Housing
Auth.,
Fort
Norfolk
Retirement
Community,
5.00%,
1/1/35
3,180
2,997
Norfolk
Redev.
&
Housing
Auth.,
Fort
Norfolk
Retirement
Community,
5.00%,
1/1/46
4,075
3,430
Norfolk
Redev.
&
Housing
Auth.,
Fort
Norfolk
Retirement
Community,
5.375%,
1/1/35
4,945
4,808
Norfolk
Redev.
&
Housing
Auth.,
Fort
Norfolk
Retirement
Community,
5.375%,
1/1/46
3,380
2,993
Norfolk
Redev.
&
Housing
Auth.,
Fort
Norfolk
Retirement
Community,
Series A,
5.00%,
1/1/49
2,575
2,113
Stafford
County
Economic
Dev.
Auth.,
Mary
Washington
Healthcare,
5.00%,
6/15/33
790
812
Stafford
County
Economic
Dev.
Auth.,
Mary
Washington
Healthcare,
5.00%,
6/15/35
1,055
1,080
Tobacco
Settlement
Fin.,
Capital
Appreciation,
Series C,
Zero
Coupon,
6/1/47
21,370
5,827
Virginia
College
Building
Auth.,
Marymount
Univ.,
5.00%,
7/1/45
(3)
4,750
4,437
Virginia
College
Building
Auth.,
Marymount
Univ.,
5.25%,
7/1/30
(3)
1,090
1,098
Virginia
College
Building
Auth.,
Marymount
Univ.,
5.25%,
7/1/35
(3)
1,430
1,437
Virginia
College
Building
Auth.,
Marymount
Univ.,
Series A,
5.00%,
7/1/24
(3)
1,080
1,079
Virginia
College
Building
Auth.,
Marymount
Univ.,
Series A,
5.00%,
7/1/25
(3)
1,140
1,138
Virginia
College
Building
Auth.,
Marymount
Univ.,
Series A,
5.00%,
7/1/30
(3)
3,750
3,764
Virginia
College
Building
Auth.,
Marymount
Univ.,
Series A,
5.00%,
7/1/35
(3)
1,000
1,001
Virginia
College
Building
Auth.,
Marymount
Univ.,
Series A,
5.00%,
7/1/45
(3)
2,460
2,298
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
4.00%,
1/1/40
(5)
1,150
1,109
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
4.00%,
1/1/41
(5)
2,140
2,055
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
4.00%,
1/1/42
(5)
1,025
979
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
4.00%,
1/1/48
(5)
15,125
14,037
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
5.00%,
7/1/35
(5)
3,530
3,847
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
5.00%,
1/1/36
(5)
845
918
Virginia
Small
Business
Fin.
Auth.,
95
Express
Lanes,
5.00%,
7/1/37
(5)
1,875
2,011
Virginia
Small
Business
Fin.
Auth.,
Elizabeth
River
Crossings,
3.00%,
1/1/41
(5)
3,000
2,413
Virginia
Small
Business
Fin.
Auth.,
Elizabeth
River
Crossings,
4.00%,
1/1/37
(5)
3,080
3,069
Virginia
Small
Business
Fin.
Auth.,
Elizabeth
River
Crossings,
4.00%,
1/1/38
(5)
3,820
3,759
Virginia
Small
Business
Fin.
Auth.,
Elizabeth
River
Crossings,
4.00%,
1/1/40
(5)
7,650
7,355
Virginia
Small
Business
Fin.
Auth.,
I-495
Hot
Lanes
Project,
5.00%,
12/31/47
(5)
6,105
6,343
Virginia
Small
Business
Fin.
Auth.,
I-495
Hot
Lanes
Project,
5.00%,
12/31/57
(5)
2,995
3,049
Virginia
Small
Business
Fin.
Auth.,
Transform
66
P3
Project,
5.00%,
12/31/49
(5)
8,705
8,779
Virginia
Small
Business
Fin.
Auth.,
Transform
66
P3
Project,
5.00%,
12/31/56
(5)
15,865
15,946
137,439
WASHINGTON
1.0%
Adams
County
Public
Hosp.
Dist.
No.
2,
GO,
5.125%,
12/1/44
2,105
2,108
Skagit
County
Public
Hosp.
Dist.
No.
1,
5.50%,
12/1/54
3,910
4,151
Washington
State
Convention
Center
Public
Fac.
Dist.,
4.00%,
7/1/31
5,975
5,904
Washington
State
Housing
Fin.
Commission,
Hearthstone,
5.00%,
7/1/38
(3)
830
683
Washington
State
Housing
Fin.
Commission,
Hearthstone,
5.00%,
7/1/48
(3)
2,300
1,706
Washington
State
Housing
Fin.
Commission,
Hearthstone,
5.00%,
7/1/53
(3)
920
663
Washington
State
Housing
Fin.
Commission,
Judson
Park,
4.00%,
7/1/28
(3)
225
218
Washington
State
Housing
Fin.
Commission,
Judson
Park,
5.00%,
7/1/33
(3)
225
224
Washington
State
Housing
Fin.
Commission,
Judson
Park,
5.00%,
7/1/38
(3)
650
623
Washington
State
Housing
Fin.
Commission,
Judson
Park,
5.00%,
7/1/48
(3)
1,660
1,455
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
Washington
State
Housing
Fin.
Commission,
Presbyterian
Retirement,
Series A,
5.00%,
1/1/46
(3)
2,575
1,818
Washington
State
Housing
Fin.
Commission,
Presbyterian
Retirement,
Series A,
5.00%,
1/1/51
(3)
5,330
3,600
Washington
State
Housing
Fin.
Commission,
Social
Certificate,
Series 1,
Class
A,
3.375%,
4/20/37
1,247
1,099
Washington
State
Housing
Fin.
Commission,
Social
Certificate,
Series A-1,
Class
A,
3.50%,
12/20/35
6,111
5,734
Washington
State
Housing
Fin.
Commission,
Transform
Age
Project,
Series A,
5.00%,
1/1/55
(3)
4,925
3,246
33,232
WEST
VIRGINIA
0.3%
Monongalia
County
Commission
Excise
Tax
Dist.,
Series A,
4.125%,
6/1/43
(3)
1,685
1,501
Monongalia
County
Commission
Excise
Tax
Dist.,
Series B,
4.875%,
6/1/43
(3)
1,180
1,145
Monongalia
County
Commission,
Univ.
Town
Center,
Series A,
5.50%,
6/1/37
(3)
1,940
1,991
Monongalia
County
Commission,
Univ.
Town
Center,
Series A,
5.75%,
6/1/43
(3)
1,940
1,992
West
Virginia
Economic
Dev.
Auth.,
Arch
Resources,
VRDN,
5.00%,
7/1/45
(Tender
7/1/25)
(5)
2,375
2,385
9,014
WISCONSIN
3.1%
PFA,
Celanese,
Series B,
5.00%,
12/1/25
(5)
4,750
4,812
PFA,
Celanese,
Series C,
4.30%,
11/1/30
(5)
3,955
3,890
PFA,
Celanese,
Series D,
4.05%,
11/1/30
1,980
1,919
PFA,
Challenge
Foundation
Academy,
6.625%,
7/1/43
(3)
1,000
1,032
PFA,
Challenge
Foundation
Academy,
6.875%,
7/1/53
(3)
1,650
1,702
PFA,
Challenge
Foundation
Academy,
7.00%,
7/1/58
(3)
1,850
1,908
PFA,
CHF
Manoa,
Series A,
5.75%,
7/1/53
(3)
4,000
4,226
PFA,
Church
Home
of
Hartford,
5.00%,
9/1/30
(3)
630
619
PFA,
Church
Home
of
Hartford,
5.00%,
9/1/38
(3)
1,365
1,258
PFA,
Corvian
Community
School,
Series A,
4.00%,
6/15/29
(3)
665
633
PFA,
Corvian
Community
School,
Series A,
5.00%,
6/15/39
(3)
790
729
PFA,
Corvian
Community
School,
Series A,
5.00%,
6/15/49
(3)
3,650
3,127
PFA,
Corvian
Community
School,
Series A,
5.125%,
6/15/47
(3)
2,085
1,841
PFA,
Corvian
Community
School,
Series A,
6.25%,
6/15/48
(3)
535
541
PFA,
Corvian
Community
School,
Series A,
6.25%,
6/15/53
(3)
2,515
2,525
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
4.00%,
7/1/30
(3)
300
282
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
5.00%,
7/1/40
(3)
560
517
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
5.00%,
7/1/55
(3)
1,145
967
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
6.375%,
7/1/43
(3)
325
335
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
6.625%,
7/1/53
(3)
100
103
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Par/Shares
$
Value
(Amounts
in
000s)
PFA,
Founders
Academy
of
Las
Vegas,
Series A,
6.75%,
7/1/58
(3)
375
388
PFA,
Grand
Hyatt
San
Antonio,
Series A,
5.00%,
2/1/52
1,835
1,844
PFA,
Grand
Hyatt
San
Antonio,
Series A,
5.00%,
2/1/62
3,370
3,339
PFA,
Mary's
Woods
at
Marylhurst,
5.25%,
5/15/37
(3)
435
422
PFA,
Mary's
Woods
at
Marylhurst,
5.25%,
5/15/47
(3)
965
876
PFA,
Mary's
Woods
at
Marylhurst,
5.25%,
5/15/52
(3)
1,820
1,617
PFA,
Mountain
Island
Charter
School,
5.00%,
7/1/37
655
655
PFA,
Mountain
Island
Charter
School,
5.00%,
7/1/47
1,585
1,505
PFA,
Mountain
Island
Charter
School,
5.00%,
7/1/52
3,405
3,171
PFA,
National
Gypsum,
4.00%,
8/1/35
(5)
18,170
16,354
PFA,
Nevada
State
College,
Series A,
5.00%,
5/1/60
(3)
4,520
3,411
PFA,
Nevada
State
College,
Series B,
9.00%,
5/1/71
(2)(3)
2,090
1,857
PFA,
Searstone
CCRC
Project,
Series A,
5.00%,
6/1/37
(3)
5,055
4,792
PFA,
Searstone
CCRC
Project,
Series A,
5.00%,
6/1/52
(3)
5,055
4,239
PFA,
SKY
Harbour
Capital,
4.00%,
7/1/41
(5)
3,685
2,865
PFA,
SKY
Harbour
Capital,
4.25%,
7/1/54
(5)
11,045
7,710
PFA,
Southminster,
5.00%,
10/1/43
(3)
1,780
1,670
PFA,
Southminster,
5.00%,
10/1/48
(3)
1,585
1,431
PFA,
Southminster,
5.00%,
10/1/53
(3)
4,560
4,006
PFA,
Univ.
of
Hawai'i
Foundation
project,
Series A-1,
4.00%,
7/1/51
(3)
2,190
1,809
PFA,
Univ.
of
Hawai'i
Foundation
project,
Series A-1,
4.00%,
7/1/61
(3)
1,215
959
PFA,
Univ.
of
Hawai'i
Foundation
project,
Series B,
5.25%,
7/1/61
(3)
1,930
1,640
Univ.
of
Wisconsin
Hosp.
&
Clinics
Auth.,
Series B,
VRDN,
3.65%,
4/1/48
1,610
1,610
Wisconsin
HEFA,
Benevolent,
5.00%,
6/1/37
880
840
Wisconsin
HEFA,
Benevolent,
5.00%,
6/1/41
1,310
1,198
Wisconsin
HEFA,
Saint
John's
Communities,
4.00%,
9/15/36
615
561
Wisconsin
HEFA,
Saint
John's
Communities,
4.00%,
9/15/41
610
521
Wisconsin
HEFA,
Saint
John's
Communities,
4.00%,
9/15/45
510
410
104,666
Total
Municipal
Securities
(Cost
$3,579,202)
3,317,706
Total
Investments
in
Securities
99.3%
of
Net
Assets
(Cost
$3,579,402)
$
3,317,976
‡
Par/Shares
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Non-income
producing
(2)
Security
is
in
default
or
has
failed
to
make
a
scheduled
interest
and/or
principal
payment.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
.
.
.
.
.
.
.
.
.
.
(3)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$738,994
and
represents
22.1%
of
net
assets.
(4)
Insured
by
Berkshire
Hathaway
Assurance
Corporation
(5)
Interest
subject
to
alternative
minimum
tax.
(6)
Insured
by
Assured
Guaranty
Corporation
(7)
Insured
by
Assured
Guaranty
Municipal
Corporation
(8)
Security
has
the
ability
to
pay
in-kind
or
pay
in
cash.
When
applicable,
separate
rates
of
such
payments
are
disclosed.
(9)
Insured
by
Build
America
Mutual
Assurance
Company
(10)
When-issued
security
(11)
Insured
by
National
Public
Finance
Guarantee
Corporation
(12)
Escrowed
to
maturity
(13)
Prerefunded
date
is
used
in
determining
portfolio
maturity.
(14)
Obligor
is
currently
in
a
bankruptcy
reorganization
proceeding;
the
amount
and
timing
of
future
distributions
is
uncertain.
(15)
Contingent
value
instrument
that
only
pays
out
if
a
portion
of
the
territory's
Sales
and
Use
Tax
outperforms
the
projections
in
the
Oversight
Board’s
Certified
Fiscal
Plan.
(16)
Issuer
is
currently
in
a
bankruptcy
reorganization
proceeding;
the
amount
and
timing
of
future
distributions
is
uncertain.
3M
USD
LIBOR
Three
month
USD
LIBOR
(London
interbank
offered
rate)
BAN
Bond
Anticipation
Note
CDA
Community
Development
Administration/Authority
CDFI
Community
Development
Financial
Institution
DFA
Development
Finance
Authority
EFA
Educational
Facility
Authority
FRN
Floating
Rate
Note
GO
General
Obligation
HEFA
Health
&
Educational
Facility
Authority
HFA
Health
Facility
Authority
HHEFA
Health
&
Higher
Educational
Facility
Authority
IDA
Industrial
Development
Authority/Agency
IDC
Industrial
Development
Corporation
PCR
Pollution
Control
Revenue
PFA
Public
Finance
Authority/Agency
PIK
Payment-in-kind
STEP
Stepped
coupon
bond
for
which
the
coupon
rate
of
interest
adjusts
on
specified
date(s);
rate
shown
is
effective
rate
at
period-end.
VR
Variable
Rate;
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
based
on
current
market
conditions.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
.
.
.
.
.
.
.
.
.
.
VRDN
Variable
Rate
Demand
Note
under
which
the
holder
has
the
right
to
sell
the
security
to
the
issuer
or
the
issuer’s
agent
at
a
predetermined
price
on
specified
dates;
such
specified
dates
are
considered
the
effective
maturity
for
purposes
of
the
fund’s
weighted
average
maturity;
rate
shown
is
effective
rate
at
period-end
and
maturity
date
shown
is
final
maturity.
Certain
VRDN
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
February
29,
2024
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
Assets
Investments
in
securities,
at
value
(cost
$3,579,402)
$
3,317,976
Interest
receivable
36,179
Receivable
for
shares
sold
5,946
Receivable
for
investment
securities
sold
2,932
Cash
257
Other
assets
81
Total
assets
3,363,371
Liabilities
Payable
for
investment
securities
purchased
12,483
Payable
for
shares
redeemed
6,857
Investment
management
fees
payable
1,282
Due
to
affiliates
90
Payable
to
directors
2
Other
liabilities
2,961
Total
liabilities
23,675
NET
ASSETS
$
3,339,696
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
February
29,
2024
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
(412,525)
Paid-in
capital
applicable
to
304,556,413
shares
of
$0.01
par
value
capital
stock
outstanding;
1,000,000,000
shares
authorized
3,752,221
NET
ASSETS
$
3,339,696
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$1,826,222;
Shares
outstanding:
166,525,090)
$
10.97
Advisor
Class
(Net
assets:
$4,552;
Shares
outstanding:
412,576)
$
11.03
I
Class
(Net
assets:
$1,508,922;
Shares
outstanding:
137,618,747)
$
10.96
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
Ended
2/29/24
Investment
Income
(Loss)
Income
Interest
$
153,597
Dividend
6
Total
income
153,603
Expenses
Investment
management
20,101
Shareholder
servicing
Investor
Class
$
2,606
Advisor
Class
10
I
Class
327
2,943
Rule
12b-1
fees
Advisor
Class
12
Prospectus
and
shareholder
reports
Investor
Class
107
Advisor
Class
2
I
Class
58
167
Interest
478
Custody
and
accounting
238
Registration
191
Proxy
and
annual
meeting
63
Legal
and
audit
39
Directors
12
Miscellaneous
138
Waived
/
paid
by
Price
Associates
(3,239)
Total
expenses
21,143
Net
investment
income
132,460
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
loss
on
securities
(72,429)
Change
in
net
unrealized
gain
/
loss
on
securities
173,874
Net
realized
and
unrealized
gain
/
loss
101,445
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
233,905
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Statement
of
Changes
in
Net
Assets
Year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Ended
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2/29/24
2/28/23
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
132,460
$
163,921
Net
realized
loss
(72,429)
(88,373)
Change
in
net
unrealized
gain
/
loss
173,874
(582,466)
Increase
(decrease)
in
net
assets
from
operations
233,905
(506,918)
Distributions
to
shareholders
Net
earnings
Investor
Class
(71,729)
(84,531)
Advisor
Class
(165)
(220)
I
Class
(58,752)
(78,467)
Decrease
in
net
assets
from
distributions
(130,646)
(163,218)
Capital
share
transactions
*
Shares
sold
Investor
Class
660,371
1,927,977
Advisor
Class
79
2,619
I
Class
300,989
1,386,152
Distributions
reinvested
Investor
Class
58,319
69,836
Advisor
Class
165
220
I
Class
39,365
57,275
Shares
redeemed
Investor
Class
(897,519)
(3,253,105)
Advisor
Class
(1,154)
(4,238)
I
Class
(724,825)
(1,245,803)
Decrease
in
net
assets
from
capital
share
transactions
(564,210)
(1,059,067)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Ended
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2/29/24
2/28/23
Net
Assets
Decrease
during
period
(460,951)
(1,729,203)
Beginning
of
period
3,800,647
5,529,850
End
of
period
$
3,339,696
$
3,800,647
*Share
information
(000s)
Shares
sold
Investor
Class
62,700
173,353
Advisor
Class
8
243
I
Class
28,440
124,045
Distributions
reinvested
Investor
Class
5,481
6,361
Advisor
Class
15
20
I
Class
3,696
5,235
Shares
redeemed
Investor
Class
(84,854)
(289,447)
Advisor
Class
(107)
(387)
I
Class
(68,101)
(114,687)
Decrease
in
shares
outstanding
(52,722)
(95,264)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Tax-Free
High
Yield
Fund,
Inc.
(the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as a
diversified, open-end
management
investment
company. The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
long-term
low-
to
upper-medium-grade
municipal
securities.
The
fund
has three classes
of
shares:
the
Tax-Free
High
Yield
Fund
(Investor
Class),
the
Tax-Free
High
Yield
Fund–Advisor
Class
(Advisor
Class)
and
the
Tax-Free
High
Yield
Fund–I
Class
(I
Class).
Advisor
Class
shares
are
sold
only
through
various
brokers
and
other
financial
intermediaries.
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts.
The
Advisor
Class
operates
under
a
Board-approved
Rule
12b-1
plan
pursuant
to
which
the
class
compensates
financial
intermediaries
for
distribution,
shareholder
servicing,
and/
or
certain
administrative
services;
the
Investor
and
I
Classes
do
not
pay
Rule
12b-1
fees. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
all
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
classes.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Dividend
income is
recorded
on
the
ex-dividend
date. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Proceeds
from
litigation
payments,
if
any,
are
included
in
either
net
realized
gain
(loss)
or
change
in
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
net
unrealized
gain/loss
from
securities. Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any, are
declared
by
each
class daily
and
paid
monthly. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class’s
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class’s
outstanding
shares.
The
Advisor
Class
pays
Rule
12b-1
fees,
in
an
amount
not
exceeding
0.25%
of
the
class’s
average
daily
net
assets.
In-Kind
Redemptions
In
accordance
with
guidelines
described
in
the
fund’s
prospectus,
and
when
considered
to
be
in
the
best
interest
of
all
shareholders,
the
fund
may
distribute
portfolio
securities
rather
than
cash
as
payment
for
a
redemption
of
fund
shares
(in-kind
redemption).
Gains
and
losses
realized
on
in-kind
redemptions
are
not
recognized
for
tax
purposes
and
are
reclassified
from
undistributed
realized
gain
(loss)
to
paid-in
capital.
During
the
year ended
February
29,
2024,
the
fund
realized
$23,866,000 of
net
loss
on
$289,824,000
of
in-kind
redemptions.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of the
fund
is
represented
by
fund
shares. The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
New
Accounting
Guidance
The
FASB
issued
Accounting
Standards
Update
(ASU),
ASU
2020–04,
Reference
Rate
Reform
(Topic
848) –
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting
in
March
2020
and
ASU
2021-01
in
January
2021
which
provided
further
amendments
and
clarifications
to
Topic
848.
These
ASUs provide
optional,
temporary
relief
with
respect
to
the
financial
reporting
of
contracts
subject
to
certain
types
of
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR),
and
other
interbank-offered
based
reference
rates,
through December
31,
2022.
In
December
2022,
FASB
issued
ASU
2022-
06
which
defers
the
sunset
date
of
Topic
848
from
December
31,
2022
to
December
31,
2024,
after
which
entities
will
no
longer
be
permitted
to
apply
the
relief
in
Topic
848.
Management
intends
to
rely
upon
the
relief
provided
under
Topic
848,
which
is
not
expected to
have
a
material
impact
on
the fund's
financial statements.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Indemnification
In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
NOTE
2
-
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Debt
securities
generally
are
traded
in
the over-the-counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Equity
securities,
including
exchange-traded
funds, listed
or
regularly
traded
on
a
securities
exchange
or
in
the
over-the-counter
(OTC)
market
are
valued
at
the
last
quoted
sale
price
or,
for
certain
markets,
the
official
closing
price
at
the
time
the
valuations
are
made.
OTC
Bulletin
Board
securities
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices.
A
security
that
is
listed
or
traded
on
more
than
one
exchange
is
valued
at
the
quotation
on
the
exchange
determined
to
be
the
primary
market
for
such
security.
Listed
securities
not
traded
on
a
particular
day
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
for
domestic
securities.
Assets
and
liabilities
other
than
financial
instruments,
including
short-term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
February
29,
2024
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective,
the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of
the
fund
are
described
more
fully
in
the
fund's
prospectus
and
Statement
of
Additional
Information.
Noninvestment-Grade
Debt
The
fund
invests,
either
directly
or
through
its
investment
in
other
T.
Rowe
Price
funds,
in
noninvestment-grade
debt,
including
“high
yield”
or
“junk”
bonds
or
leveraged
loans.
Noninvestment-grade
debt
issuers
are
more
likely
to
suffer
an
adverse
change
in
financial
condition
that
would
result
in
the
inability
to
meet
a
financial
obligation.
The
noninvestment-grade
debt
market
may
experience
sudden
and
sharp
price
swings
due
to
a
variety
of
factors
that
may
decrease
the
ability
of
issuers
to
make
principal
and
interest
payments
and
adversely
affect
the
liquidity
or
value,
or
both,
of
such
securities.
Accordingly,
securities
issued
by
such
companies
carry
a
higher
risk
of
default
and
should
be
considered
speculative.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
When-Issued
Securities
The fund
enters
into
when-issued
purchase
or
sale
commitments,
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
an
authorized
but
not
yet
issued
security
for
a
fixed
unit
price,
with
payment
and
delivery
not
due
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Municipal
Securities
$
—
$
3,317,706
$
—
$
3,317,706
Common
Stocks
270
—
—
270
Total
$
270
$
3,317,706
$
—
$
3,317,976
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
until
issuance
of
the
security
on
a
scheduled
future
date.
When-issued
securities
may
be
new
securities
or
securities
issued
through
a
corporate
action,
such
as
a
reorganization
or
restructuring.
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
a
when-issued
security.
Amounts
realized
on
when-issued
transactions
are
included
in
realized
gain/loss
on
securities
in
the
accompanying
financial
statements.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any,
short-term and
U.S.
government
securities
aggregated $389,714,000 and
$613,541,000,
respectively,
for
the
year ended
February
29,
2024.
NOTE
4
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
The
fund
files
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
fund’s
tax
returns
are
subject
to
examination
by
the
relevant
tax
authorities
until
expiration
of
the
applicable
statute
of
limitations,
which
is
generally
three
years
after
the
filing
of
the
tax
return
but
which
can
be
extended
to
six
years
in
certain
circumstances.
Tax
returns
for
open
years
have
incorporated
no
uncertain
tax
positions
that
require
a
provision
for
income
taxes.
Capital
accounts
within
the
financial
reporting
records
are
adjusted
for
permanent
book/
tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
permanent
book/tax
adjustments,
if
any,
have
no
impact
on
results
of
operations
or
net
assets.
The
permanent
book/tax
adjustments
relate
primarily
to
redemptions
in
kind,
the
character
of
market
discount
at
time
of
sale,
differences
between
book/tax
amortization
policies,
and
the
character
of
income
on
certain
derivative
contracts.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
The
tax
character
of
distributions
paid
for
the
periods
presented
was
as
follows:
At
February
29,
2024,
the
tax-basis
cost
of
investments
(including
derivatives,
if
any)
and
gross
unrealized
appreciation
and
depreciation
were as
follows:
At
February
29,
2024,
the
tax-basis
components
of
accumulated
net
earnings
(loss)
were
as
follows:
Temporary
differences
between
book-basis
and
tax-basis
components
of
total
distributable
earnings
(loss)
arise
when
certain
items
of
income,
gain,
or
loss
are
recognized
in
different
periods
for
financial
statement
purposes
versus
for
tax
purposes;
these
differences
will
reverse
in
a
subsequent
reporting
period.
The
temporary
differences
relate
primarily
to
the
deferral
of
losses
from
wash
sales,
the
recognition
of
market
discount
and
premium
amortization
and
the
character
of
income
on
certain
($000s)
February
29,
2024
February
28,
2023
Ordinary
income
(including
short-term
capital
gains,
if
any)
$
—
$
2,480
Tax-exempt
income
130,646
160,738
Total
distributions
$
130,646
$
163,218
($000s)
Cost
of
investments
$
3,570,690
Unrealized
appreciation
$
58,225
Unrealized
depreciation
(310,939)
Net
unrealized
appreciation
(depreciation)
$
(252,714)
($000s)
Undistributed
ordinary
income
$
1,798
Undistributed
tax-exempt
income
5,484
Net
unrealized
appreciation
(depreciation)
(252,714)
Loss
carryforwards
and
deferrals
(167,093)
Total
distributable
earnings
(loss)
$
(412,525)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
derivatives
contracts.
The
loss
carryforwards
and
deferrals
primarily
relate
to
capital
loss
carryforwards.
Capital
loss
carryforwards
are
available
indefinitely
to
offset
future
realized
capital
gains.
NOTE
5
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group).
The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly. The
fee
consists
of
an
individual
fund
fee,
equal
to
0.30%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.260%
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
February
29,
2024,
the
effective
annual
group
fee
rate
was
0.29%. Effective
July
1,
2019,
Price
Associates
has
contractually
agreed,
at
least
through
June
30,
2024,
to
waive
a
portion
of
its
management
fee
in
order
to
limit
the
fund’s
management
fees
to 0.49% of
the
fund’s
average
daily
net
assets.
Thereafter,
this
agreement
will
automatically
renew
for
one-
year
terms
unless
terminated
or
modified
by
the
fund’s
Board.
Any
fees
waived
under
this
agreement
are
not
subject
to
reimbursement
to
Price
Associates
by
the
fund. The
total
management
fees
waived
were $3,239,000
and
allocated
ratably
in
the
amounts
of
$1,803,000
for
the
Investor
Class,
$5,000
for
the
Advisor
Class,
and
$1,431,000
for
the
I
Class,
for
the
year
ended
February
29,
2024.
Effective
November
1,
2023,
the Investor
Class is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
Effective
June
1,
2023,
the Advisor
Class is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
Prior
to
November
1,
2023,
the
Investor
Class was
not
subject
to
a
contractual
expense
limitation.
Prior
to
June
1,
2023,
the
Advisor
Class was
not
subject
to
a
contractual
expense
limitation.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the
class’s
ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
Each
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the
class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
a
wholly
owned
subsidiary
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
For
the
year
ended
February
29,
2024,
expenses
incurred
pursuant
to
these
service
agreements
were
$113,000
for
Price
Associates
and
$713,000
for
T.
Rowe
Price
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
The
fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
Investor
Class
Advisor
Class
I
Class
Expense
limitation/I
Class
Limit
0.94%
1.19%
0.05%
Expense
limitation
date
06/30/25
06/30/25
06/30/25
(Waived)/repaid
during
the
period
($000s)
$—
$—
$—
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
year
ended
February
29,
2024,
the
aggregate
value
of
purchases
and
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates
was
less
than
1%
of
the
fund’s
net
assets
as
of
February
29,
2024.
NOTE
6
-
BORROWING
The
fund,
together
with
certain
other
U.S.
registered
floating
rate
and
tax-free
high
yield
funds
(the
U.S.
borrowers)
and
foreign
investment
funds
managed
by
Price
Associates
or
an
affiliate
(collectively,
the
participating
funds),
is
party
to
a
$1.3
billion,
364-day,
syndicated
credit
facility
(the
facility).
Excluding
commitments
designated
for
the
foreign
investment
funds,
the U.S.
borrowers can
borrow
up
to
an
aggregate
commitment
amount
of
$1.15 billion,
of
which
$900
million
is
available
to
the
U.S.
floating
rate
borrowers
and
$250
million
is
available
to
the
U.S.
tax-free
high
yield
borrowers, on
a
first-come,
first-served
basis.
The
facility
provides
a
source
of
liquidity
to
the
participating
funds
for
temporary
and
emergency
purposes. The
participating
funds
are
charged
administrative
fees
and
an
annual
commitment
fee, of
0.15% of
the
average
daily
undrawn
commitment.
All
fees
allocated
to
the
U.S.
borrowers
are
based
on
the
portion
of
the
aggregate
commitment
available
to
them
and
on
each
U.S.
borrower’s
relative
net
assets.
Such
allocated
fees
are
reflected
as either
miscellaneous
or interest
and
borrowing
related
expense
in
the accompanying
Statement
of
Operations.
Loans
are
generally
unsecured;
however,
the
fund
must
collateralize
any
borrowings
under
the
facility
on
an
equivalent
basis
if
it
has
other
collateralized
borrowings.
Interest
is
charged
to
the
fund
based
on
its
borrowings
at
the
higher
of
(a)
Secured
Overnight
Financing
Rate
(SOFR)
plus
0.10%
per
annum,
(b)
Federal
Funds
Rate,
or
(c)
the
Overnight
Bank
Funding
Rate
plus
an
applicable
margin. At
February
29,
2024,
the
fund
had
no
borrowings
outstanding
under
the
facility,
and
the
undrawn
amount
of
the
facility
for
the
U.S.
borrowers
was
$1,150,000,000.
NOTE
7
-
OTHER
MATTERS
Unpredictable
events
such
as
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
events,
and
public
health
epidemics and
similar
public
health
threats
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
the fund
invests.
Certain
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-existing
political,
social,
and
economic
risks.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
The
global
outbreak
of
COVID-19
and
the
related
governmental
and
public
responses
have
led
and
may
continue
to
lead
to
increased
market
volatility
and
the
potential
for
illiquidity
in
certain
classes
of
securities
and
sectors
of
the
market
either
in
specific
countries
or
worldwide.
In
February
2022,
Russian
forces
entered
Ukraine
and
commenced
an
armed
conflict,
leading
to
economic
sanctions imposed
on
Russia
that
target certain
of
its
citizens
and
issuers
and
sectors
of
the
Russian
economy,
creating
impacts
on
Russian-related
stocks
and
debt
and
greater
volatility
in
global
markets.
In
March
2023,
the
banking
industry
experienced
heightened
volatility,
which
sparked
concerns
of
potential
broader
adverse
market
conditions.
The
extent
of
impact
of
these
events
on
the
US
and
global
markets
is
highly
uncertain.
These
are
recent
examples
of
global
events
which
may
have
a
negative
impact
on
the
values
of
certain
portfolio
holdings
or
the
fund's
overall
performance.
Management
is
actively
monitoring
the
risks
and
financial
impacts
arising
from
these
events.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
To
the
Board
of
Directors
and
Shareholders
of
T.
Rowe
Price
Tax-Free
High
Yield
Fund,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
portfolio
of
investments,
of
T.
Rowe
Price
Tax-Free
High
Yield
Fund,
Inc.
(the
"Fund")
as
of
February
29,
2024,
the
related
statement
of
operations
for
the
year
ended
February
29,
2024,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
29,
2024,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
February
29,
2024
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
February
29,
2024,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
February
29,
2024
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
February
29,
2024
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
February
29,
2024
by
correspondence
with
the
custodian
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
Baltimore,
Maryland
April
18,
2024
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
T.
Rowe
Price
group
of
investment
companies
since
1973.
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
(continued)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
TAX
INFORMATION
(UNAUDITED)
FOR
THE
TAX
YEAR
ENDED 2/29/24
We
are
providing
this
information
as
required
by
the
Internal
Revenue
Code.
The
amounts
shown
may
differ
from
those
elsewhere
in
this
report
because
of
differences
between
tax
and
financial
reporting
requirements.
The
fund’s
distributions
to
shareholders
included
$130,712,000
which
qualified
as
exempt-interest
dividends.
For
taxable
non-corporate
shareholders,
$6,000
of
the
fund's
income
represents
qualified
dividend
income
subject
to
a
long-term
capital
gains
tax
rate
of
not
greater
than
20%.
For
corporate
shareholders,
$6,000
of
the
fund's
income
qualifies
for
the
dividends-
received
deduction.
INFORMATION
ON
PROXY
VOTING
POLICIES,
PROCEDURES,
AND
RECORDS
A
description
of
the
policies
and
procedures
used
by
T.
Rowe
Price
funds
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
is
available
in
each
fund’s
Statement
of
Additional
Information.
You
may
request
this
document
by
calling
1-800-225-5132
or
by
accessing
the
SEC’s
website,
sec.gov.
The
description
of
our
proxy
voting
policies
and
procedures
is
also
available
on
our
corporate
website.
To
access
it,
please
visit
the
following
Web
page:
https://www.troweprice.com/corporate/us/en/utility/policies.html
Scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Guidelines.”
Click
on
the
links
in
the
shaded
box.
Each
fund’s
most
recent
annual
proxy
voting
record
is
available
on
our
website
and
through
the
SEC’s
website.
To
access
it
through
T.
Rowe
Price,
visit
the
website
location
shown
above,
and
scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Records.”
Click
on
the
Proxy
Voting
Records
link
in
the
shaded
box.
HOW
TO
OBTAIN
QUARTERLY
PORTFOLIO
HOLDINGS
The
fund
files
a
complete
schedule
of
portfolio
holdings
with
the
Securities
and
Exchange
Commission
(SEC)
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
fund’s
reports
on
Form
N-PORT
are
available
electronically
on
the
SEC’s
website
(sec.gov).
In
addition,
most
T.
Rowe
Price
funds
disclose
their
first
and
third
fiscal
quarter-end
holdings
on
troweprice.com
.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
TAILORED
SHAREHOLDER
REPORTS
FOR
MUTUAL
FUNDS
AND
EXCHANGE
TRADED
FUNDS
In
October
2022,
the
Securities
and
Exchange
Commission
(SEC)
adopted
rule
and
form
amendments
requiring
Mutual
Funds
and
Exchange-Traded
Funds
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
that
highlight
key
information
to
shareholders.
Other
information,
including
financial
statements,
will
no
longer
appear
in
the
funds’
shareholder
reports
but
will
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
ABOUT
THE
FUND'S
DIRECTORS
AND
OFFICERS
Your
fund
is
overseen
by
a
Board
of
Directors
(Board)
that
meets
regularly
to
review
a
wide
variety
of
matters
affecting
or
potentially
affecting
the
fund,
including
performance,
investment
programs,
compliance
matters,
advisory
fees
and
expenses,
service
providers,
and
business
and
regulatory
affairs.
The
Board
elects
the
fund’s
officers,
who
are
listed
in
the
final
table.
The
directors
who
are
also
employees
or
officers
of
T.
Rowe
Price
are
considered
to
be
“interested”
directors
as
defined
in
Section
2(a)(19)
of
the
1940
Act
because
of
their
relationships
with
T.
Rowe
Price
Associates,
Inc. (T.
Rowe
Price),
and
its
affiliates.
The
business
address
of
each
director
and
officer
is
100
East
Pratt
Street,
Baltimore,
Maryland
21202.
The
Statement
of
Additional
Information
includes
additional
information
about
the
fund
directors
and
is
available
without
charge
by
calling
a
T.
Rowe
Price
representative
at
1-800-638-5660.
INDEPENDENT
DIRECTORS
(a)
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Teresa
Bryce
Bazemore
(1959)
2018
[193]
President
and
Chief
Executive
Officer,
Federal
Home
Loan
Bank
of
San
Francisco
(2021
to
present)
and
Director
of
the
FHLBanks
Office
of
Finance;
Chief
Executive
Officer,
Bazemore
Consulting
LLC
(2018
to
2021);
Director,
Chimera
Investment
Corporation
(2017
to
2021);
Director,
First
Industrial
Realty
Trust
(2020
to
present);
Director,
Federal
Home
Loan
Bank
of
Pittsburgh
(2017
to
2019)
Melody
Bianchetto
(1966)
2023
[193]
Vice
President
for
Finance,
University
of
Virginia
(2015
to
2023)
Bruce
W.
Duncan
(1951)
2013
[193]
President,
Chief
Executive
Officer,
and
Director,
CyrusOne,
Inc.
(2020
to
2021);
Chair
of
the
Board
(2016
to
2020)
and
President
(2009
to
2016),
First
Industrial
Realty
Trust,
owner
and
operator
of
industrial
properties;
Member,
Investment
Company
Institute
Board
of
Governors
(2017
to
2019);
Member,
Independent
Directors
Council
Governing
Board
(2017
to
2019);
Senior
Advisor,
KKR
(2018
to
2022);
Director,
Boston
Properties
(2016
to
present);
Director,
Marriott
International,
Inc.
(2016
to
2020)
Robert
J.
Gerrard,
Jr.
(1952)
2013
[193]
Chair
of
the
Board,
all
funds
(July
2018
to
present)
Paul
F.
McBride
(1956)
2013
[193]
Advisory
Board
Member,
Vizzia
Technologies
(2015
to
present);
Board
Member,
Dunbar
Armored
(2012
to
2018)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
INTERESTED
DIRECTORS
(a)
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Mark
J.
Parrell
(1966)
2023
[193]
Board
of
Trustees
Member
and
Chief
Executive
Officer
(2019
to
present),
President,
EQR
(2018
to
present),
Executive
Vice
President
and
Chief
Financial
Officer,
EQR
(2007
to
2018),
and
Senior
Vice
President
and
Treasurer,
EQR
(2005
to
2007);
Member,
Nareit
Dividends
Through
Diversity,
Equity
&
Inclusion
CEO
Council,
Treasurer
of
Nareit
(2023),
and
Chair,
Nareit
2021
Audit
and
Investment
Committee
(2021);
Advisory
Board,
Ross
Business
School
at
University
of
Michigan
(2015
to
2016);
Member,
National
Multifamily
Housing
Council
and
served
as
Chair
of
the
Finance
Committee
(2015
to
2016);
Member,
Economic
Club
of
Chicago;
Director,
Brookdale
Senior
Living,
Inc.
(2015
to
2017);
Director,
Aviv
REIT,
Inc.
(2013
to
2015);
Director,
Real
Estate
Roundtable
and
the
2022
Executive
Board
Nareit;
Board
of
Directors
and
Chair
of
the
Finance
Committee,
Greater
Chicago
Food
Depository
Kellye
L.
Walker
(1966)
2021
[193]
Executive
Vice
President
and
Chief
Legal
Officer,
Eastman
Chemical
Company
(April
2020
to
present);
Executive
Vice
President
and
Chief
Legal
Officer,
Huntington
Ingalls
Industries,
Inc.
(January
2015
to
March
2020);
Director,
Lincoln
Electric
Company
(October
2020
to
present)
(a)
All
information
about
the
independent
directors
was
current
as
of
December
31,
2023,
unless
otherwise
indicated,
except
for
the
number
of
portfolios
overseen,
which
is
current
as
of
the
date
of
this
report.
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
David
Oestreicher
(1967)
2018
[193]
Director,
Vice
President,
and
Secretary,
T.
Rowe
Price,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price
Retirement
Plan
Services,
Inc.,
and
T.
Rowe
Price
Services,
Inc.;
Director
and
Secretary,
T.
Rowe
Price
Investment
Management,
Inc.
(Price
Investment
Management);
Vice
President
and
Secretary,
T.
Rowe
Price
International
(Price
International);
Vice
President,
T.
Rowe
Price
Australia,
T.
Rowe
Price
Hong
Kong
(Price
Hong
Kong),
T.
Rowe
Price
Japan
(Price
Japan),
and
T.
Rowe
Price
Singapore
(Price
Singapore);
General
Counsel,
Vice
President,
and
Secretary,
T.
Rowe
Price
Group,
Inc.;
Chair
of
the
Board,
Chief
Executive
Officer,
President,
and
Secretary,
T.
Rowe
Price
Trust
Company;
Principal
Executive
Officer
and
Executive
Vice
President,
all
funds
INDEPENDENT
DIRECTORS
(a)
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
OFFICERS
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Eric
L.
Veiel,
CFA
(1972)
2022
[193]
Director
and
Vice
President,
T.
Rowe
Price;
Vice
President,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company;
Vice
President,
Global
Funds
(a)
All
information
about
the
interested
directors
was
current
as
of
December
31,
2023,
unless
otherwise
indicated,
except
for
the
number
of
portfolios
overseen,
which
is
current
as
of
the
date
of
this
report.
Name
(Year
of
Birth)
Position
Held
With Tax-Free
High
Yield
Fund
Principal
Occupation(s)
Ralph Lee
Arnold,
Jr.,
CFA,
CPA
(1970)
Executive
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Colin
T.
Bando,
CFA
(1987)
Executive
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Armando
(Dino)
Capasso
(1974)
Chief
Compliance
Officer
and
Vice
President
Chief
Compliance
Officer
and
Vice
President,
T.
Rowe
Price
and
Price
Investment
Management;
Vice
President,
T.
Rowe
Price
Group,
Inc.;
formerly,
Chief
Compliance
Officer,
PGIM
Investments
LLC
and
AST
Investment
Services,
Inc.
(ASTIS)
(to
2022);
Chief
Compliance
Officer,
PGIM
Retail
Funds
complex
and
Prudential
Insurance
Funds
(to
2022);
Vice
President
and
Deputy
Chief
Compliance
Officer,
PGIM
Investments
LLC
and
ASTIS
(to
2019)
Daniel
Chihorek
(1984)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Davis
Collins,
CFA
(1989)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Jean-Marc
Corredor
(1976)
Vice
President
Vice
President,
Price
International,
Price
Investment
Management,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Alan
S.
Dupski,
CPA
(1982)
Principal
Financial
Officer,
Vice
President,
and
Treasurer
Vice
President,
Price
Investment
Management,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Unless
otherwise
noted,
officers
have
been
employees
of
T.
Rowe
Price
or
Price
International
for
at
least
5
years.
INTERESTED
DIRECTORS
(a)
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Name
(Year
of
Birth)
Position
Held
With Tax-Free
High
Yield
Fund
Principal
Occupation(s)
Cheryl
Emory
(1963)
Assistant
Secretary
Assistant
Vice
President
and
Assistant
Secretary,
T.
Rowe
Price;
Assistant
Secretary,
T.
Rowe
Price
Group,
Inc.,
Price
Investment
Management,
Price
International,
Price
Hong
Kong,
Price
Singapore,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price
Retirement
Plan
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
Kathryn
A.
Floyd,
CFA
(1982)
Vice
President
Employee,
T.
Rowe
Price
Cheryl
Hampton,
CPA
(1969)
Vice
President
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company;
formerly,
Tax
Director,
Invesco
Ltd.
(to
2021);
Vice
President,
Oppenheimer
Funds,
Inc.
(to
2019)
Thomas
Dylan
Jones,
CFA
(1971)
Vice
President
Vice
President, T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Michael
Kane
(1982)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.;
formerly,
Research
Analyst,
GW&K
Investments
(to
2019)
Benjamin
Kersse,
CPA
(1989)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Trust
Company
Paul
J.
Krug,
CPA
(1964)
Vice
President
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Robert
P.
McDavid
(1972)
Vice
President
Vice
President,
T.
Rowe
Price, Price
Investment
Management, T.
Rowe
Price
Investment
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
James
M.
Murphy,
CFA
(1967)
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Fran
M.
Pollack-Matz
(1961)
Vice
President
and
Secretary
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
T.
Rowe
Price
Investment
Services,
Inc., T.
Rowe
Price
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
Richard
Sennett,
CPA
(1970)
Assistant
Treasurer
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Timothy
G.
Taylor,
CFA
(1975)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Unless
otherwise
noted,
officers
have
been
employees
of
T.
Rowe
Price
or
Price
International
for
at
least
5
years.
T.
ROWE
PRICE
Tax-Free
High
Yield
Fund
Name
(Year
of
Birth)
Position
Held
With Tax-Free
High
Yield
Fund
Principal
Occupation(s)
Domingo
Villarruel,
CFA,
FRM
(1982)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.;
formerly,
Municipal
Fixed
Income
Analyst,
Victory
Capital
Management
Inc.
(to
2021);
Corporate
Fixed
Income
Analyst,
USAA
Asset
Management
Company
(to
2019)
Ellen
York
(1988)
Vice
President
Vice
President,
Price
Investment
Management
and
T.
Rowe
Price
Unless
otherwise
noted,
officers
have
been
employees
of
T.
Rowe
Price
or
Price
International
for
at
least
5
years.
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
F59-050
4/24
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its
principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form
N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.
Item 3. Audit Committee Financial Expert.
The
registrant’s Board of Directors has determined that Mr. Paul F. McBride qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. McBride is considered
independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by the
registrant’s principal accountant were as follows:
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2024 |
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2023 |
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| Audit Fees |
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$ |
33,158 |
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$ |
30,755 |
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| Audit-Related Fees |
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- |
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- |
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| Tax Fees |
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- |
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- |
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| All Other Fees |
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- |
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- |
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Audit fees include amounts related to the audit of the registrant’s annual financial statements and
services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements and specifically
include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these
services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant’s pro-rata share of amounts for
agreed-upon procedures in conjunction with service contract approvals by the registrant’s Board of Directors/Trustees.
(e)(1) The
registrant’s audit committee has adopted a policy whereby audit and non-audit services performed by the registrant’s principal accountant for the registrant, its investment adviser, and any entity
controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings.
If such a service is required between regularly scheduled audit committee meetings, pre-approval may be authorized by one audit committee member with ratification at the next scheduled audit committee meeting.
Waiver of pre-approval for audit or non-audit services requiring fees of a de minimis amount is not permitted.
(2) No services included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Less than 50 percent of the hours expended on the principal accountant’s
engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant
were $1,180,000 and $1,454,000, respectively.
(h) All non-audit services rendered in
(g) above were pre-approved by the registrant’s audit committee. Accordingly, these services were considered by the registrant’s audit committee in maintaining the principal accountant’s
independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy
Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity
Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls
and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s
principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for
Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| T. Rowe Price Tax-Free High Yield Fund, Inc. |
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| By |
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/s/ David Oestreicher |
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David Oestreicher |
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Principal Executive Officer |
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| Date |
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April 18, 2024 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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| By |
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/s/ David Oestreicher |
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David Oestreicher |
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Principal Executive Officer |
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| Date |
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April 18, 2024 |
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| By |
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/s/ Alan S. Dupski |
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Alan S. Dupski |
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Principal Financial Officer |
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| Date |
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April 18, 2024 |
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