Franklin New York Tax Free Income Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number

_811-03479

Franklin New York Tax-Free Income Fund

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: 5/31

Date of reporting period: 11/30/20

Item 1. Reports to Stockholders.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

New

York

Tax-Free

Income

Fund

November

30,

2020

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

November

30,

2020,

reported

first-

and

second-quarter

2020

data

indicated

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

In

2020’s

third

quarter,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending.

Before

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

and

implemented

broad

quantitative

easing

measures

to

support

credit

markets.

During

the

reporting

period,

the

Federal

Reserve

held

its

key

rate

unchanged

at

0.25%,

but

it

continued

quantitative

easing

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

During

the

six-month

period,

municipal

bonds

posted

positive

total

returns

as

investors

were

attracted

to

tax-free

income

in

a

low

interest-rate

environment.

Factors

contributing

to

this

positive

investment

environment

for

municipals

included

relatively

low

inflation,

interest-rate

stability

and

recent

actions

by

the

Federal

Reserve

to

support

the

municipal

bond

market.

On

July

1,

2020,

we

appointed

Ben

Barber

as

senior

vice

president

and

director

of

our

municipal

bond

department,

and

we

are

pleased

that

he

has

rejoined

Franklin.

Ben

most

recently

served

as

co-head

of

municipal

bonds

at

Goldman

Sachs

Asset

Management.

Ben

started

his

career

of

over

28

years

of

municipal

bond

investing

at

Franklin

in

1991,

working

with

several

current

investment

team

members

through

1999,

when

he

joined

Goldman

Sachs.

Franklin

New

York

Tax-Free

Income

Fund’s

semiannual

report

includes

more

detail

about

municipal

bond

market

conditions

and

a

discussion

from

the

portfolio

managers.

In

addition,

on

our

website,

franklintempleton.com

,

you

can

find

updated

commentary

by

our

municipal

bond

experts.

Municipal

bonds

provide

tax-free

income

and

diversification

from

equities.

Despite

periods

of

volatility,

municipal

bonds

historically

have

had

a

solid

long-term

record

of

performance,

driven

mostly

by

their

compounding

tax-free

income

component.

As

you

may

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

As

always,

we

recommend

investors

consult

their

financial

advisors

to

help

them

make

the

best

decisions

for

the

long

term.

In

a

constantly

changing

market

environment,

we

remain

committed

to

our

disciplined

strategy

as

we

manage

the

Fund,

keeping

in

mind

the

trust

you

have

placed

in

us.

We

appreciate

your

confidence

in

us

and

encourage

you

to

contact

us

or

your

financial

advisor

when

you

have

questions

about

your

Franklin

tax-free

investment.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

New

York

Tax-Free

Income

Fund

Ben

Barber

Senior

Vice

President

Director

of

Municipal

Bonds

This

letter

reflects

our

analysis

and

opinions

as

of

November

30,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

New

York

Tax-Free

Income

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

8

Financial

Highlights

and

Statement

of

Investments

9

Financial

Statements

22

Notes

to

Financial

Statements

26

Shareholder

Information

33

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

New

York

Tax-Free

Income

Fund

This

semiannual

report

for

Franklin

New

York

Tax-Free

Income

Fund

covers

the

period

ended

November

30,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

investors

with

as

high

a

level

of

income

exempt

from

federal,

New

York

State

and

New

York

City

personal

income

taxes

as

is

consistent

with

prudent

investment

management

and

preservation

of

shareholders’

capital

by

normally

investing

at

least

80%

of

its

total

assets

in

securities

that

pay

interest

free

from

federal

income

taxes

and

New

York

State

personal

income

taxes.

1

The

Fund

only

buys

municipal

securities

rated,

at

the

time

of

purchase,

in

one

of

the

top

four

ratings

categories

by

one

or

more

U.S.

nationally

recognized

rating

services

(or

unrated

or

short-

term

rated

securities

of

comparable

credit

quality).

Performance

Overview

The

Fund’s

Class

A

share

price,

as

measured

by

net

asset

value,

increased

from

$11.09

on

May

31,

2020,

to

$11.30

on

November

30,

2020.

The

Fund’s

Class

A

shares

paid

dividends

totaling

14.3984

cents

per

share

for

the

reporting

period.

2

The

Performance

Summary

beginning

on

page

6

shows

that

at

the

end

of

this

reporting

period

the

Fund’s

Class

A

shares’

distribution

rate

was

2.40%

based

on

an

annualization

of

November’s

2.3460

cents

per

share

dividend

and

the

maximum

offering

price

of

$11.74

on

November

30,

2020.

An

investor

in

the

2020

maximum

federal

personal

income

tax

bracket

of

53.50%

(plus

3.80%

Medicare

tax)

would

need

to

earn

a

distribution

rate

of

5.16%

from

a

taxable

investment

to

match

the

Fund’s

Class

A

tax-

free

distribution

rate.

For

other

performance

data,

please

see

the

Performance

Summary.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Municipal

Bond

Market

Overview

During

the

six

months

ended

November

30,

2020,

technical

conditions

in

the

municipal

(muni)

bond

market

and

reduced

political

uncertainty

supported

valuations

in

the

sector.

Ratios

of

muni

bond

versus

U.S.

Treasury

(UST)

yields

have

improved

significantly

since

the

market

dislocations

seen

in

March

2020

and

are

approaching

levels

last

seen

at

the

beginning

of

the

year.

The

muni

bond

market

has

experienced

continual

inflows

of

money

into

retail

vehicles

with

low

net

supply

of

tax-exempt

bonds.

Issuers

have

increasingly

turned

to

the

taxable

muni

bond

market

to

refund

tax-exempt

debt

and

new

issuance.

These

taxable

structures

provide

low

all-in

borrowing

costs

and,

in

some

instances,

reduced

covenants.

With

the

probability

of

a

contested

U.S.

presidential

election

diminishing,

in

our

view,

additional

federal

fiscal

stimulus

appears

increasingly

likely

to

us.

The

final

makeup

of

the

U.S.

Senate

will

be

decided

Credit

Quality

Composition

*

11/30/20

Ratings

%

of

Total

Investments

AAA

14.86%

AA

59.83%

A

18.48%

BBB

1.75%

Refunded

4.86%

Not

Rated

0.22%

*

Securities,

except

for

those

labeled

Not

Rated,

are

assigned

ratings

by

one

or

more

Nationally

Recognized

Statistical

Credit

Rating

Organizations

(NRSROs),

such

as

Standard

&

Poor’s,

Moody’s

and

Fitch,

that

can

be

considered

by

the

investment

manager

as

part

of

its

independent

securities

analysis.

When

ratings

from

multiple

agencies

are

available,

the

highest

is

used,

consistent

with

the

portfolio

investment

process.

Ratings

reflect

an

NRSRO’s

opinion

of

an

issuer’s

creditworthiness

and

typically

range

from

AAA

(highest)

to

D

(lowest).

The

Below

Investment

Grade

category

consists

of

bonds

rated

below

BBB-.

The

Refunded

category

generally

consists

of

refunded

bonds

secured

by

U.S.

government

or

other

high-quality

securities

and

not

rerated

by

an

NRSRO.

The

Not

Rated

category

consists

of

ratable

securities

that

have

not

been

rated

by

an

NRSRO.

Cash

and

equivalents

are

excluded

from

this

composition.

1.

For

investors

subject

to

alternative

minimum

tax,

a

small

portion

of

Fund

dividends

may

be

taxable.

Distributions

of

capital

gains

are

generally

taxable.

To

avoid

the

impo-

sition

of

28%

backup

withholding

on

all

Fund

distributions

and

redemption

proceeds,

U.S.

investors

must

be

properly

certified

on

Form

W-9

and

non-U.S.

investors

on

Form

W-8BEN.

2.

The

distribution

amount

is

the

sum

of

all

estimated

tax-basis

net

investment

income

distributions

for

the

period

shown.

A

portion

or

all

of

the

distribution

may

be

reclassified

as

return

of

capital

or

short-term

or

long-term

capital

gains

once

final

tax

designations

are

known.

Assumes

shares

were

purchased

and

held

for

the

entire

accrual

period.

Since

dividends

accrue

daily,

your

actual

distributions

will

vary

depending

on

the

date

you

purchased

your

shares

and

any

account

activity.

All

Fund

distributions

will

vary

depending

upon

current

market

conditions,

and

past

distributions

are

not

indicative

of

future

trends.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

New

York

Tax-Free

Income

Fund

4

franklintempleton.com

Semiannual

Report

by

January

runoff

elections

in

the

state

of

Georgia

and

will

likely

affect

the

size

and

composition

of

any

supplemental

funds

provided

to

muni

bond

issuers.

For

a

number

of

state

and

local

governments,

revenues

have

exceeded

projections

as

states

reopened

portions

of

their

economies,

but

large

deficits

are

still

anticipated.

Additionally,

rising

new

novel

coronavirus

(COVID-19)

infection

rates

throughout

the

U.S.

have

the

potential

to

restrict

additional

economic

activity

as

consumer

sentiment

waned

toward

the

end

of

the

period.

In

the

six-month

period

ending

in

November

2020,

revenue

bonds

outperformed

general

obligation

securities

and

lower-

quality

investment-grade

issues

outperformed

their

higher-

rated

counterparts.

Within

the

revenue

bond

segments,

hospital

and

leasing

bonds

were

the

best

performers,

while

resource

recovery

bonds

had

positive

returns

but

lagged

other

revenue

segments.

The

Investment

Company

Institute

(ICI)

reported

net

inflows

of

approximately

$5

billion

into

muni

bond

retail

vehicles

in

November

2020.

For

the

six-month

period,

muni

bond

retail

vehicles

saw

approximately

$48

billion

of

net

inflows,

according

to

the

ICI.

U.S.

fixed

income

sectors

broadly

underperformed

relative

to

equities

during

the

period,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

posted

a

+19.98%

total

return

for

the

period.

3

Investment-grade

muni

bonds,

as

measured

by

the

Bloomberg

Barclays

Municipal

Bond

Index,

posted

a

+3.29%

total

return,

while

USTs,

as

measured

by

the

Bloomberg

Barclays

U.S.

Treasury

Index,

posted

a

-0.33%

total

return,

and

investment-grade

corporate

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Corporate

Bond

Index,

posted

a

+6.22%

total

return.

3

Although

the

muni

bond

market

has

seen

a

strong

recovery

since

March

2020,

we

believe

robust

technical

support

will

continue

as

funds

flow

into

the

market,

with

negative

net

issuance

supporting

valuations.

It

is

our

view

that,

despite

the

ongoing

pandemic

and

its

resulting

economic

downturn,

a

second

market

disruption

related

to

COVID-19

is

unlikely

to

unfold

in

the

muni

bond

market.

Most

municipalities

were

in

good

financial

shape

entering

the

COVID-19

shock

and

backed

their

muni

bond

borrowings

with

very

high

security.

Additionally,

most

governments

with

outstanding

debt

have

a

large

variety

of

revenue

sources

that

enhance

the

likelihood

of

meeting

their

financial

obligations.

State

Update

New

York’s

large

and

diverse

economy,

which

generates

above-average

income

and

wealth

levels,

struggled

during

the

six-month

period

amid

the

COVID-19

pandemic.

The

virus

hit

New

York

City,

the

state’s

economic

engine,

particularly

hard.

Public

health

measures

to

contain

the

pandemic

early

in

the

year

contributed

to

widespread

job

losses,

and

New

York’s

economic

recovery

has

been

slower

than

in

most

other

states.

The

state’s

unemployment

rate

of

14.5%

in

May

2020

decreased

to

8.4%

by

period-end,

which

still

exceeded

the

6.7%

national

rate.

4

New

York’s

fiscal

year

2021

budget

faces

lower

revenue

and

increased

spending

due

to

COVID-19’s

economic

and

public

health

implications.

Medicaid

spending

growth

also

pressured

the

budget,

which

provided

new

powers

for

the

governor

and

budget

director

to

balance

the

budget.

New

York’s

net

tax-supported

debt

was

moderately

high

at

$3,314

per

capita

and

4.6%

of

personal

income,

compared

with

the

$1,071

and

2.0%

national

medians,

respectively.

5

Independent

credit

rating

agency

Moody’s

Investors

Service

downgraded

its

rating

to

Aa2

on

New

York’s

general

obligation

debt

in

October

while

raising

its

outlook

from

negative

to

stable.

6

Moody’s

downgrade

reflected

the

disproportionate

impact

of

COVID-19

on

the

state’s

economy,

the

state’s

relatively

slow

recovery,

new

long-term

budget

gaps,

and

growing

health

care

and

education

costs

amid

uncertain

federal

funding.

The

rating

also

recognizes

positive

factors

like

the

state’s

large

and

diverse

economy,

moderate

leverage,

budget

management

tools

and

history

of

closing

budget

gaps.

Investment

Strategy

We

select

securities

we

believe

will

provide

the

best

balance

between

risk

and

return

within

the

Fund’s

range

of

allowable

investments

and

typically

use

a

buy-and-hold

strategy.

This

means

we

generally

hold

securities

in

the

Fund’s

portfolio

for

income

purposes,

rather

than

trading

securities

for

capital

gains,

although

we

may

sell

a

security

at

any

time

if

we

believe

it

could

help

the

Fund

meet

its

goal.

3.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

4.

Source:

Bureau

of

Labor

Statistics.

5.

Source:

Moody’s

Investors

Service,

State

government

–

US:

Medians

–

State

debt

declined

in

2019,

but

likely

to

grow

in

coming

years

,

5/12/20.

6.

This

does

not

indicate

Moody’s

rating

of

the

Fund.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Franklin

New

York

Tax-Free

Income

Fund

5

franklintempleton.com

Semiannual

Report

*

Does

not

include

cash

and

cash

equivalents.

**

Includes

all

refunded

bonds;

the

percentage

may

differ

from

that

in

the

Credit

Quality

Composition.

Manager’s

Discussion

The

combination

of

our

value-oriented

philosophy

of

investing

primarily

for

income

and

a

positive-sloping

municipal

yield

curve,

in

which

interest

rates

for

longer-term

bonds

are

higher

than

those

for

shorter-term

bonds,

led

us

to

favor

longer-term

bonds

during

the

reporting

period.

Consistent

with

our

strategy,

we

sought

to

remain

close

to

fully

invested

in

bonds

ranging

from

20

to

30

years

in

maturity

with

good

call

features.

In

line

with

our

relative

value

investment

strategy,

and

to

further

reduce

volatility,

we

avoided

derivative

securities

and

other

investment

vehicles

designed

to

leverage

the

portfolio.

During

the

period,

the

Fund

had

no

exposure

to

inverse

floaters

or

any

other

form

of

leverage.

We

believe

our

conservative,

buy-and-hold

investment

strategy

can

help

us

achieve

high,

current,

tax-

free

income

for

shareholders.

Thank

you

for

your

continued

participation

in

Franklin

New

York

Tax-Free

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

November

30,

2020,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Portfolio

Composition

11/30/20

%

of

Total

Investments

*

Transportation

20.31%

Tax-Supported

20.30%

Utilities

17.38%

Higher

Education

11.29%

Refunded**

7.03%

General

Obligation

5.71%

Housing

5.35%

Corporate-Backed

4.40%

Hospital

&

Health

Care

3.72%

Subject

to

Government

Appropriations

3.23%

Other

Revenue

1.28%

Performance

Summary

as

of

November

30,

2020

Franklin

New

York

Tax-Free

Income

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

11/30/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A

:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

6-Month

+3.21%

-0.66%

1-Year

+3.87%

-0.03%

5-Year

+15.14%

+2.08%

10-Year

+38.67%

+2.93%

Advisor

6-Month

+3.34%

+3.34%

1-Year

+4.03%

+4.03%

5-Year

+16.10%

+3.03%

10-Year

+40.57%

+3.46%

Share

Class

Distribution

Rate

5

Taxable

Equivalent

Distribution

Rate

6

30-Day

Standardized

Yield

7

Taxable

Equivalent

30-Day

Standardized

Yield

6

A

2.40%

5.16%

1.18%

2.54%

Advisor

2.74%

5.89%

1.47%

3.16%

See

page

7

for

Performance

Summary

footnotes.

Franklin

New

York

Tax-Free

Income

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

municipal

bonds

are

sensitive

to

interest-rate

movements,

the

Fund’s

yield

and

share

price

will

fluctuate

with

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Because

the

Fund

invests

principally

in

a

single

state,

it

is

subject

to

greater

risk

of

adverse

economic

and

regulatory

changes

in

that

state

than

a

geographically

diversified

fund.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

Fund

may

invest

a

significant

part

of

its

assets

in

municipal

securities

that

finance

similar

types

of

projects,

such

as

utilities,

hospitals,

higher

education

and

transportation.

A

change

that

affects

one

project

would

likely

affect

all

similar

projects,

thereby

increasing

market

risk.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

November

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

11/30/20.

6.

Taxable

equivalent

distribution

rate

and

yield

assume

the

published

rates

as

of

6/18/20

for

the

maximum

combined

effective

federal

and

New

York

state

and

City

personal

income

tax

rate

of

53.50%,

based

on

the

federal

income

tax

rate

of

37.00%

plus

3.80%

Medicare

tax.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(6/1/20–11/30/20)

Share

Class

Net

Investment

Income

A

$0.143984

A1

$0.152544

C

$0.121547

R6

$0.160377

Advisor

$0.158230

Total

Annual

Operating

Expenses

8

Share

Class

A

0.78%

Advisor

0.53%

Your

Fund’s

Expenses

Franklin

New

York

Tax-Free

Income

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.

50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

183/365

to

reflect

the

one-half

year

period.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

6/1/20

Ending

Account

Value

11/30/20

Expenses

Paid

During

Period

6/1/20–11/30/20

1

Ending

Account

Value

11/30/20

Expenses

Paid

During

Period

6/1/20–11/30/20

1

a

Net

Annualized

Expense

Ratio

A

$1,000

$1,032.10

$3.98

$1,021.16

$3.95

0.78%

A1

$1,000

$1,031.94

$3.21

$1,021.91

$3.20

0.63%

C

$1,000

$1,030.05

$6.00

$1,019.16

$5.97

1.18%

R6

$1,000

$1,033.54

$2.51

$1,022.60

$2.50

0.49%

Advisor

$1,000

$1,033.37

$2.70

$1,022.41

$2.69

0.53%

Franklin

New

York

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

2020

Year

Ended

May

31,

2019

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..........................................

$11.09

$11.10

$10.75

Income

from

investment

operations

b

:

Net

investment

income

c

..................................................

0.14

0.29

0.24

Net

realized

and

unrealized

gains

(losses)

....................................

0.21

(0.01)

0.34

Total

from

investment

operations

.............................................

0.35

0.28

0.58

Less

distributions

from:

Net

investment

income

...................................................

(0.14)

(0.29)

(0.23)

Net

asset

value,

end

of

period

...............................................

$11.30

$11.09

$11.10

Total

return

d

............................................................

3.21%

2.51%

5.46%

Ratios

to

average

net

assets

e

Expenses

..............................................................

0.78%

f

0.78%

f

0.78%

f

Net

investment

income

....................................................

2.55%

2.59%

3.09%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.............................................

$347,368

$291,562

$177,982

Portfolio

turnover

rate

.....................................................

6.11%

21.27%

19.78%

a

For

the

period

September

10,

2018

(effective

date)

to

May

31,

2019.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.10

$11.10

$10.86

$11.20

$11.54

$11.58

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.31

0.35

0.37

0.39

0.41

Net

realized

and

unrealized

gains

(losses)

0.20

(0.01)

0.25

(0.34)

(0.33)

(0.04)

Total

from

investment

operations

........

0.35

0.30

0.60

0.03

0.06

0.37

Less

distributions

from:

Net

investment

income

..............

(0.15)

(0.30)

(0.36)

(0.37)

(0.40)

(0.41)

Net

asset

value,

end

of

period

..........

$11.30

$11.10

$11.10

$10.86

$11.20

$11.54

Total

return

c

.......................

3.19%

2.75%

5.67%

0.26%

0.52%

3.30%

Ratios

to

average

net

assets

d

Expenses

.........................

0.63%

e

0.63%

e

0.63%

e

0.64%

0.61%

0.61%

Net

investment

income

...............

2.71%

2.74%

3.24%

3.33%

3.45%

3.59%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,867,728

$2,902,606

$3,192,168

$3,421,773

$3,892,131

$4,131,002

Portfolio

turnover

rate

................

6.11%

21.27%

19.78%

10.58%

17.44%

4.14%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.08

$11.09

$10.85

$11.19

$11.52

$11.57

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.12

0.24

0.29

0.31

0.33

0.35

Net

realized

and

unrealized

gains

(losses)

0.21

(0.01)

0.25

(0.34)

(0.33)

(0.05)

Total

from

investment

operations

........

0.33

0.23

0.54

(0.03)

—

0.30

Less

distributions

from:

Net

investment

income

..............

(0.12)

(0.24)

(0.30)

(0.31)

(0.33)

(0.35)

Net

asset

value,

end

of

period

..........

$11.29

$11.08

$11.09

$10.85

$11.19

$11.52

Total

return

c

.......................

3.01%

2.10%

5.10%

(0.31)%

0.04%

2.64%

Ratios

to

average

net

assets

d

Expenses

.........................

1.18%

e

1.18%

e

1.18%

e

1.19%

1.16%

1.16%

Net

investment

income

...............

2.16%

2.19%

2.69%

2.78%

2.90%

3.04%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$219,791

$257,275

$332,093

$506,155

$614,981

$665,206

Portfolio

turnover

rate

................

6.11%

21.27%

19.78%

10.58%

17.44%

4.14%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

Year

Ended

May

31,

2018

a

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$11.11

$11.12

$10.88

$11.15

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.16

0.32

0.36

0.33

Net

realized

and

unrealized

gains

(losses)

........................

0.21

(0.01)

0.25

(0.32)

Total

from

investment

operations

.................................

0.37

0.31

0.61

0.01

Less

distributions

from:

Net

investment

income

.......................................

(0.16)

(0.32)

(0.37)

(0.28)

Net

asset

value,

end

of

period

...................................

$11.32

$11.11

$11.12

$10.88

Total

return

d

................................................

3.35%

2.80%

5.80%

0.13%

Ratios

to

average

net

assets

e

Expenses

..................................................

0.49%

f

0.50%

f

0.50%

f,g

0.50%

g

Net

investment

income

........................................

2.83%

2.87%

3.37%

3.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$80,917

$71,991

$62,689

$60,363

Portfolio

turnover

rate

.........................................

6.11%

21.27%

19.78%

10.58%

a

For

the

period

August

1,

2017

(effective

date)

to

May

31,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.10

$11.11

$10.87

$11.21

$11.55

$11.59

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.16

0.32

0.36

0.38

0.40

0.42

Net

realized

and

unrealized

gains

(losses)

0.21

(0.02)

0.25

(0.34)

(0.33)

(0.04)

Total

from

investment

operations

........

0.37

0.30

0.61

0.04

0.07

0.38

Less

distributions

from:

Net

investment

income

..............

(0.16)

(0.31)

(0.37)

(0.38)

(0.41)

(0.42)

Net

asset

value,

end

of

period

..........

$11.31

$11.10

$11.11

$10.87

$11.21

$11.55

Total

return

c

.......................

3.34%

2.76%

5.77%

0.35%

0.61%

3.40%

Ratios

to

average

net

assets

d

Expenses

.........................

0.53%

e

0.53%

e

0.53%

e

0.54%

0.51%

0.51%

Net

investment

income

...............

2.80%

2.84%

3.34%

3.43%

3.55%

3.69%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$276,472

$266,050

$220,727

$240,101

$312,544

$274,034

Portfolio

turnover

rate

................

6.11%

21.27%

19.78%

10.58%

17.44%

4.14%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments,

November

30,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

98.8%

New

York

98.8%

Battery

Park

City

Authority

,

Revenue,

Senior

Lien

,

2019A

,

5

%

,

11/01/49

..........

$

16,130,000

$

20,785,602

Brookhaven

Local

Development

Corp.

,

Active

Retirement

Community,

Inc.

Obligated

Group,

Revenue,

2020

A,

4%,

11/01/45

1,500,000

1,558,755

Active

Retirement

Community,

Inc.

Obligated

Group,

Revenue,

2020

A,

4%,

11/01/55

8,000,000

8,263,440

Broome

County

Local

Development

Corp.

,

United

Health

Services

Hospitals

Obligated

Group

,

Revenue

,

2020

,

Refunding

,

AGMC

Insured

,

3

%

,

4/01/50

...............

5,500,000

5,584,205

Buffalo

&

Erie

County

Industrial

Land

Development

Corp.

,

Buffalo

State

College

Foundation

Housing

Corp.,

Revenue,

2011A,

Pre-Refunded,

5.375%,

10/01/41

................................................

2,035,000

2,070,266

Catholic

Health

System

Obligated

Group,

Revenue,

2015,

5.25%,

7/01/35

.......

1,000,000

1,141,370

Catholic

Health

System

Obligated

Group,

Revenue,

2015,

5%,

7/01/40

.........

1,000,000

1,121,880

D'Youville

College,

Revenue,

2020A,

Refunding,

4%,

11/01/50

................

2,500,000

2,607,625

City

of

New

Rochelle

,

Iona

College,

Revenue,

2015A,

Refunding,

5%,

7/01/40

.....................

1,250,000

1,352,400

Iona

College,

Revenue,

2015A,

Refunding,

5%,

7/01/45

.....................

1,425,000

1,530,892

City

of

New

York

,

GO,

2002

D,

Refunding,

5.5%,

6/01/24

..................................

145,000

145,623

GO,

2006

G,

Refunding,

AMBAC

Insured,

5%,

8/01/22

......................

10,000

10,037

GO,

2014J,

Refunding,

5%,

8/01/32

....................................

10,000,000

11,494,500

GO,

2015C,

Refunding,

5%,

8/01/29

...................................

20,640,000

24,170,472

GO,

2015C,

Refunding,

5%,

8/01/31

...................................

10,000,000

11,652,400

GO,

2015C,

Refunding,

5%,

8/01/32

...................................

4,000,000

4,639,600

GO,

2015C,

Refunding,

5%,

8/01/33

...................................

3,000,000

3,470,400

GO,

2015C,

Refunding,

5%,

8/01/34

...................................

1,500,000

1,733,220

GO,

2017

B,

5%,

12/01/41

...........................................

7,000,000

8,309,560

GO,

2018

B-1,

5%,

10/01/38

.........................................

6,250,000

7,657,437

GO,

2018

E-1,

5%,

3/01/39

..........................................

16,210,000

19,880,917

GO,

2018

E-1,

5%,

3/01/40

..........................................

7,500,000

9,182,475

GO,

2018

E-1,

5%,

3/01/44

..........................................

12,500,000

15,127,375

GO,

2018

F-1,

5%,

4/01/40

..........................................

6,830,000

8,377,200

GO,

2018

F-1,

5%,

4/01/45

..........................................

10,000,000

12,094,400

GO,

2019

-

D1,

4%,

12/01/43

.........................................

10,000,000

11,500,400

GO,

2019

-

D1,

5%,

12/01/44

.........................................

10,000,000

12,279,500

GO,

2020

A(A-1),

5%,

8/01/43

........................................

5,000,000

6,217,250

GO,

2021

C,

4%,

8/01/41

............................................

3,000,000

3,552,570

GO,

2021B,

Refunding,

5%,

11/01/32

...................................

8,095,000

10,735,913

County

of

Nassau

,

GO

,

2013C

,

AGMC

Insured

,

5

%

,

4/01/43

...................

26,665,000

28,929,925

Dutchess

County

Local

Development

Corp.

,

Health

QuestSystems

Obligated

Group,

Revenue,

2016

B,

5%,

7/01/31

.........

10,550,000

12,361,646

Nuvance

Health

Obligated

Group,

Revenue,

2019B,

Refunding,

4%,

7/01/44

.....

800,000

885,224

Nuvance

Health

Obligated

Group,

Revenue,

2019B,

Refunding,

4%,

7/01/49

.....

2,250,000

2,471,063

Vassar

College,

Revenue,

2017,

Refunding,

5%,

7/01/42

....................

5,000,000

6,009,100

Vassar

College,

Revenue,

2017,

Refunding,

4%,

7/01/46

....................

5,715,000

6,389,941

Erie

County

Industrial

Development

Agency

(The)

,

Buffalo

City

School

District

,

Revenue

,

2013A

,

Refunding

,

5

%

,

5/01/28

...............................

8,100,000

8,946,612

Hempstead

Town

Local

Development

Corp.

,

Hofstra

University,

Revenue,

2017,

Refunding,

5%,

7/01/42

..................

1,250,000

1,474,162

Hofstra

University,

Revenue,

2017,

Refunding,

5%,

7/01/47

..................

5,250,000

6,144,023

Hudson

Yards

Infrastructure

Corp.

,

Revenue,

2017

A,

Refunding,

5%,

2/15/42

...............................

20,000,000

23,730,800

Revenue,

2017

A,

Refunding,

4%,

2/15/44

...............................

13,680,000

15,224,609

Revenue,

2017

A,

Refunding,

5%,

2/15/45

...............................

15,000,000

17,699,550

Revenue,

Senior

Lien,

2012A,

Pre-Refunded,

5.25%,

2/15/47

.................

1,545,000

1,561,037

Revenue,

Senior

Lien,

2012A,

Refunding,

5.25%,

2/15/47

...................

33,455,000

33,769,477

Long

Island

Power

Authority

,

Revenue,

2012A,

Pre-Refunded,

5%,

9/01/42

.............................

7,300,000

7,916,193

Revenue,

2012A,

Refunding,

5%,

9/01/42

...............................

14,700,000

15,727,089

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

Long

Island

Power

Authority,

(continued)

Revenue,

2014A,

Refunding,

5%,

9/01/44

...............................

$

5,000,000

$

5,696,250

Revenue,

2016

B,

Refunding,

5%,

9/01/36

...............................

5,000,000

6,047,000

Revenue,

2016

B,

Refunding,

5%,

9/01/41

...............................

10,000,000

11,995,600

Revenue,

2016

B,

Refunding,

5%,

9/01/46

...............................

18,000,000

21,493,080

Revenue,

2018,

5%,

9/01/39

.........................................

5,000,000

6,308,000

Revenue,

2019

A,

4%,

9/01/37

........................................

19,550,000

22,974,769

Revenue,

2020

A,

Refunding,

5%,

9/01/38

...............................

1,500,000

1,986,585

Metropolitan

Transportation

Authority

,

Revenue,

2003

A,

AGMC

Insured,

5.5%,

11/15/23

.........................

7,460,000

8,512,308

Revenue,

2012C,

Refunding,

5%,

11/15/31

..............................

10,000,000

10,447,800

Revenue,

2012C,

Refunding,

5%,

11/15/41

..............................

10,670,000

11,096,160

Revenue,

2012C,

Pre-Refunded,

5%,

11/15/47

............................

16,125,000

17,639,460

Revenue,

2013

D,

5%,

11/15/43

.......................................

10,000,000

10,578,400

Revenue,

2013A,

5%,

11/15/38

.......................................

7,280,000

7,641,088

Revenue,

2014B,

5.25%,

11/15/35

.....................................

4,000,000

4,318,960

Revenue,

2015A-1,

5%,

11/15/45

......................................

10,000,000

10,775,800

Revenue,

2015C-1,

Refunding,

5%,

11/15/35

.............................

5,000,000

5,457,000

Revenue,

2016

D,

Refunding,

5%,

11/15/30

..............................

10,305,000

11,527,997

Revenue,

2016B,

Refunding,

5%,

11/15/33

...............................

6,000,000

6,673,860

Revenue,

2016B,

Refunding,

5%,

11/15/35

...............................

4,000,000

4,433,080

Revenue,

2016B,

Refunding,

5%,

11/15/37

...............................

18,500,000

20,471,175

Revenue,

2017

D,

Refunding,

4%,

11/15/42

..............................

20,000,000

21,026,000

Revenue,

2017

D,

Refunding,

4%,

11/15/46

..............................

5,000,000

5,243,000

Revenue,

2017A-1,

Refunding,

5%,

11/15/51

.............................

2,505,000

2,767,499

Revenue,

2017C-1,

Refunding,

5%,

11/15/30

.............................

6,215,000

7,119,904

Revenue,

2019

C,

AGMC

Insured,

4%,

11/15/45

...........................

8,000,000

9,007,280

Revenue,

2020

A-1,

5%,

11/15/48

.....................................

10,000,000

11,502,100

Revenue,

2020

C-1,

5%,

11/15/50

.....................................

3,000,000

3,445,350

Dedicated

Tax

Fund,

Revenue,

2016B-2,

Refunding,

5%,

11/15/39

.............

4,775,000

5,589,997

Dedicated

Tax

Fund,

Revenue,

2017

A,

5%,

11/15/47

.......................

30,375,000

35,391,735

Dedicated

Tax

Fund,

Revenue,

2017B-1,

Refunding,

5%,

11/15/35

.............

6,000,000

7,224,240

Dedicated

Tax

Fund,

Revenue,

2017B-1,

Refunding,

5%,

11/15/42

.............

5,000,000

5,928,200

Dedicated

Tax

Fund,

Revenue,

2017B-1,

Refunding,

5%,

11/15/47

.............

13,505,000

15,895,250

Monroe

County

Industrial

Development

Corp.

,

Rochester

General

Hospital

(The),

Revenue,

2017,

5%,

12/01/46

..............

15,000,000

17,269,350

a

True

North

Rochester

Prep

Charter

School,

Revenue,

144A,

2020

A,

5%,

6/01/50

.

1,265,000

1,471,069

a

True

North

Rochester

Prep

Charter

School,

Revenue,

144A,

2020

A,

5%,

6/01/59

.

1,080,000

1,247,270

University

of

Rochester,

Revenue,

2013A,

Pre-Refunded,

5%,

7/01/38

..........

6,350,000

7,135,876

University

of

Rochester,

Revenue,

2013B,

Pre-Refunded,

5%,

7/01/43

..........

5,000,000

5,618,800

University

of

Rochester,

Revenue,

2015A,

Refunding,

5%,

7/01/30

.............

3,275,000

3,856,935

University

of

Rochester,

Revenue,

2015A,

Refunding,

5%,

7/01/32

.............

2,000,000

2,341,120

University

of

Rochester,

Revenue,

2015A,

Refunding,

5%,

7/01/37

.............

1,780,000

2,064,052

University

of

Rochester,

Revenue,

2017

C,

Refunding,

4%,

7/01/43

............

22,895,000

25,898,137

University

of

Rochester,

Revenue,

2017

D,

Refunding,

4%,

7/01/43

............

21,550,000

24,376,714

University

of

Rochester,

Revenue,

2020A,

4%,

7/01/50

......................

36,600,000

42,652,908

New

York

City

,

Water

&

Sewer

System,

Revenue,

2011EE,

Pre-Refunded,

5.375%,

6/15/43

......

25,900,000

25,949,210

Water

&

Sewer

System,

Revenue,

2013

BB,

5%,

6/15/47

....................

15,000,000

16,333,350

Water

&

Sewer

System,

Revenue,

2017

AA,

4%,

6/15/46

....................

24,290,000

27,511,340

Water

&

Sewer

System,

Revenue,

2017

DD,

5%,

6/15/47

....................

33,800,000

41,037,932

Water

&

Sewer

System,

Revenue,

2018

BB-1,

5%,

6/15/46

..................

20,875,000

25,450,800

Water

&

Sewer

System,

Revenue,

2018

CC-1,

5%,

6/15/48

..................

38,475,000

46,825,999

Water

&

Sewer

System,

Revenue,

2018

FF,

Refunding,

5%,

6/15/40

............

15,000,000

18,913,800

Water

&

Sewer

System,

Revenue,

2019

DD-1,

5%,

6/15/49

..................

27,825,000

34,520,251

Water

&

Sewer

System,

Revenue,

2019

FF-1,

4%,

6/15/49

...................

10,000,000

11,683,500

Water

&

Sewer

System,

Revenue,

2020

AA,

Refunding,

4%,

6/15/40

...........

5,000,000

6,011,750

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

New

York

City,

(continued)

Water

&

Sewer

System,

Revenue,

2020

AA,

Refunding,

5%,

6/15/40

...........

$

10,000,000

$

13,038,400

Water

&

Sewer

System,

Revenue,

2020

BB1,

4%,

6/15/49

...................

20,000,000

23,548,200

Water

&

Sewer

System,

Revenue,

2020

BB1,

5%,

6/15/49

...................

10,000,000

12,813,000

New

York

City

Educational

Construction

Fund

,

Revenue

,

2011A

,

5.75

%

,

4/01/41

....

20,000,000

20,359,000

New

York

City

Housing

Development

Corp.

,

Revenue,

2018

K,

4%,

11/01/48

.......................................

49,905,000

54,257,714

Revenue,

2019

G-1-B,

Refunding,

3%,

11/01/44

...........................

12,295,000

12,813,357

Revenue,

2019

J,

3%,

11/01/44

.......................................

5,000,000

5,220,900

Revenue,

2020

C,

FNMA

Insured,

2.75%,

2/01/51

.........................

10,000,000

10,179,300

Revenue,

2020

D

1B,

Refunding,

FHA

Insured,

2.4%,

11/01/50

...............

10,000,000

9,785,100

New

York

City

Industrial

Development

Agency

,

Yankee

Stadium

LLC

,

Revenue

,

2020

A

,

Refunding

,

AGMC

Insured

,

3

%

,

3/01/49

.................................

10,000,000

10,489,100

New

York

City

Transitional

Finance

Authority

,

Building

Aid,

Revenue,

2019

S-1,

5%,

7/15/43

............................

5,230,000

6,444,563

Building

Aid,

Revenue,

2019

S-1,

5%,

7/15/45

............................

17,000,000

20,854,410

Building

Aid,

Revenue,

2019

S-2A,

Refunding,

5%,

7/15/34

..................

4,235,000

5,344,019

Building

Aid,

Revenue,

2019

S-3A,

Refunding,

5%,

7/15/37

..................

10,425,000

13,040,111

Building

Aid,

Revenue,

2020S1,

4%,

7/15/43

.............................

11,800,000

13,687,174

Building

Aid,

Revenue,

2020S1,

4%,

7/15/44

.............................

12,275,000

14,201,439

Building

Aid,

Revenue,

2020S1,

4%,

7/15/46

.............................

5,000,000

5,841,850

Future

Tax

Secured,

Revenue,

2011C,

Refunding,

5%,

11/01/39

...............

10,000

10,034

Future

Tax

Secured,

Revenue,

2012E-1,

5%,

2/01/37

.......................

10,000,000

10,510,500

Future

Tax

Secured,

Revenue,

2013

I,

5%,

5/01/42

........................

45,000,000

49,259,250

Future

Tax

Secured,

Revenue,

2014D-1,

5%,

2/01/38

.......................

17,000,000

19,154,580

Future

Tax

Secured,

Revenue,

2014D-1,

5%,

2/01/39

.......................

24,135,000

27,153,565

Future

Tax

Secured,

Revenue,

2014D-1,

5%,

2/01/40

.......................

18,300,000

20,564,442

Future

Tax

Secured,

Revenue,

2015

A-1,

5%,

8/01/34

......................

5,115,000

5,893,452

Future

Tax

Secured,

Revenue,

2015

E-1,

5%,

2/01/34

......................

10,000,000

11,692,500

Future

Tax

Secured,

Revenue,

2015

E-1,

5%,

2/01/35

......................

10,000,000

11,670,200

Future

Tax

Secured,

Revenue,

2015B,

5%,

8/01/34

........................

5,000,000

5,760,950

Future

Tax

Secured,

Revenue,

2017

A-1,

5%,

5/01/40

......................

13,415,000

16,003,290

Future

Tax

Secured,

Revenue,

2017

C,

Refunding,

5%,

11/01/33

..............

6,500,000

8,069,815

Future

Tax

Secured,

Revenue,

2017

F-1,

5%,

5/01/42

......................

4,340,000

5,290,894

Future

Tax

Secured,

Revenue,

2018

B-1,

5%,

8/01/45

......................

17,500,000

21,329,175

Future

Tax

Secured,

Revenue,

2018

C-3,

4%,

5/01/42

......................

7,410,000

8,500,900

Future

Tax

Secured,

Revenue,

2018-A-3,

5%,

8/01/40

......................

3,270,000

4,030,079

Future

Tax

Secured,

Revenue,

2018-A-3,

4%,

8/01/43

......................

5,645,000

6,423,671

Future

Tax

Secured,

Revenue,

2019

A-1,

5%,

8/01/42

......................

5,000,000

6,203,700

Future

Tax

Secured,

Revenue,

2019

C-1,

4%,

11/01/42

.....................

7,500,000

8,717,550

Future

Tax

Secured,

Revenue,

2020A,

4%,

5/01/44

........................

10,000,000

11,583,800

Future

Tax

Secured,

Revenue,

F-1,

5%,

2/01/34

...........................

5,000,000

5,450,250

Future

Tax

Secured,

Revenue,

F-1,

5%,

2/01/36

...........................

8,250,000

8,974,268

New

York

Convention

Center

Development

Corp.

,

Revenue,

Senior

Lien

,

2016A

,

5

%

,

11/15/46

........................................................

5,000,000

5,679,800

New

York

Liberty

Development

Corp.

,

Revenue,

2011

-

1WTC,

5.25%,

12/15/43

................................

50,000,000

52,211,000

7

World

Trade

Center

II

LLC,

Revenue,

2012,

1,

Refunding,

5%,

9/15/40

........

18,000,000

18,905,040

Goldman

Sachs

Headquarters

LLC,

Revenue,

2005,

Refunding,

5.25%,

10/01/35

..

86,360,000

124,769,474

Goldman

Sachs

Headquarters

LLC,

Revenue,

2007,

5.5%,

10/01/37

...........

27,000,000

40,891,230

New

York

Power

Authority

,

Revenue

,

2020

A

,

Refunding

,

4

%

,

11/15/50

...........

30,000,000

35,446,800

New

York

State

Dormitory

Authority

,

Revenue,

2008

A-1,

5%,

6/01/38

......................................

4,635,000

4,652,057

Revenue,

2009A,

Refunding,

AGMC

Insured,

5.625%,

10/01/29

...............

300,000

301,260

Revenue,

2009C,

Refunding,

AGMC

Insured,

5%,

10/01/31

..................

45,000

45,163

Revenue,

2009C,

Refunding,

AGMC

Insured,

5.125%,

10/01/36

...............

60,000

60,226

Revenue,

2010A,

Refunding,

AGMC

Insured,

5%,

10/01/21

..................

265,000

266,023

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

New

York

State

Dormitory

Authority,

(continued)

Revenue,

2010A,

Refunding,

AGMC

Insured,

5%,

10/01/22

..................

$

395,000

$

396,489

Revenue,

2010A,

Refunding,

AGMC

Insured,

5%,

10/01/24

..................

710,000

712,670

Revenue,

2013A,

Pre-Refunded,

5%,

3/15/43

.............................

16,675,000

18,503,747

Revenue,

2017

A,

Pre-Refunded,

5%,

2/15/39

............................

5,000

6,432

Catholic

Health

System

Obligated

Group,

Revenue,

2019

A,

Refunding,

4%,

7/01/45

2,875,000

3,129,495

Educational

Housing

Services,

Inc.,

Revenue,

2005,

AMBAC

Insured,

5.25%,

7/01/30

5,150,000

6,330,380

Fashion

Institute

of

Technology,

Revenue,

2007,

NATL

Insured,

5.25%,

7/01/26

...

6,105,000

6,924,230

Fashion

Institute

of

Technology,

Revenue,

2007,

NATL

Insured,

5.25%,

7/01/34

...

13,220,000

15,729,817

Fordham

University,

Revenue,

2020,

4%,

7/01/50

..........................

4,000,000

4,541,240

Memorial

Sloan-Kettering

Cancer

Center,

Revenue,

2017

1,

Refunding,

4%,

7/01/47

5,000,000

5,654,700

New

School

(The),

Revenue,

2015A,

Refunding,

5%,

7/01/40

.................

5,500,000

6,170,340

New

School

(The),

Revenue,

2015A,

Refunding,

5%,

7/01/45

.................

9,385,000

10,450,010

New

York

University,

Revenue,

2012A,

Pre-Refunded,

5%,

7/01/37

............

7,000,000

7,534,590

New

York

University,

Revenue,

2012A,

Pre-Refunded,

5%,

7/01/42

............

10,000,000

10,763,700

New

York

University,

Revenue,

2015A,

Refunding,

5%,

7/01/45

...............

5,000,000

5,773,850

New

York

University,

Revenue,

2017

A,

Refunding,

5%,

7/01/38

...............

5,000,000

6,110,950

New

York

University,

Revenue,

2017

A,

Refunding,

5%,

7/01/40

...............

6,745,000

8,210,149

New

York

University,

Revenue,

2017

A,

Refunding,

5%,

7/01/43

...............

3,000,000

3,627,990

New

York

University,

Revenue,

2019A,

4%,

7/01/45

........................

3,415,000

3,971,338

New

York

University,

Revenue,

2019A,

5%,

7/01/49

........................

50,000,000

62,223,500

Northwell

Health

Obligated

Group,

Revenue,

2009B,

5%,

5/01/39

..............

10,000,000

10,462,800

Northwell

Health

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

5/01/36

.....

11,000,000

12,596,210

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2014,

Refunding,

5%,

7/01/27

2,025,000

2,317,450

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2014,

Refunding,

5%,

7/01/30

1,000,000

1,133,170

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2014,

Refunding,

5%,

7/01/32

1,000,000

1,127,710

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2014,

Refunding,

5%,

7/01/34

7,250,000

8,148,057

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2020A,

3%,

7/01/48

........

4,000,000

4,172,240

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2020A,

4%,

7/01/50

........

25,100,000

28,734,731

NYU

Langone

Hospitals

Obligated

Group,

Revenue,

2020A,

4%,

7/01/53

........

10,420,000

11,887,344

Rochester

Institute

of

Technology,

Revenue,

2019A,

5%,

7/01/49

..............

3,500,000

4,336,885

Rockefeller

University

(The),

Revenue,

2019

C,

Refunding,

4%,

7/01/49

.........

6,750,000

7,903,035

Rockefeller

University

(The),

Revenue,

2019B,

5%,

7/01/50

..................

6,500,000

8,249,475

Rockefeller

University

(The),

Revenue,

2020A,

Refunding,

5%,

7/01/53

.........

10,000,000

12,926,800

St.

John's

University,

Revenue,

2015A,

Refunding,

5%,

7/01/29

...............

1,375,000

1,594,670

St.

John's

University,

Revenue,

2015A,

Refunding,

5%,

7/01/30

...............

1,675,000

1,936,015

St.

John's

University,

Revenue,

2015A,

Refunding,

5%,

7/01/31

...............

3,700,000

4,255,925

St.

John's

University,

Revenue,

2015A,

Refunding,

5%,

7/01/34

...............

2,000,000

2,278,460

State

of

New

York

Personal

Income

Tax,

Revenue,

2011C,

5%,

3/15/34

.........

10,000,000

10,124,300

State

of

New

York

Personal

Income

Tax,

Revenue,

2012B,

5%,

3/15/37

.........

6,915,000

7,270,846

State

of

New

York

Personal

Income

Tax,

Revenue,

2016

A,

Refunding,

5%,

2/15/41

4,000,000

4,795,920

State

of

New

York

Personal

Income

Tax,

Revenue,

2016

A,

Refunding,

5%,

2/15/42

1,950,000

2,334,462

State

of

New

York

Personal

Income

Tax,

Revenue,

2016

A,

Refunding,

5%,

2/15/43

8,450,000

10,100,623

State

of

New

York

Personal

Income

Tax,

Revenue,

2017

A,

Refunding,

5%,

2/15/37

5,000,000

6,092,950

State

of

New

York

Personal

Income

Tax,

Revenue,

2017

A,

Refunding,

5%,

2/15/38

5,000,000

6,080,850

State

of

New

York

Personal

Income

Tax,

Revenue,

2017

A,

Refunding,

5%,

2/15/39

8,940,000

10,852,624

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Pre-Refunded,

5%,

2/15/40

........................................................

10,000

13,094

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Refunding,

5%,

2/15/40

9,415,000

11,565,574

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Refunding,

5%,

2/15/41

12,410,000

15,211,185

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Pre-Refunded,

5%,

2/15/41

........................................................

15,000

19,640

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Pre-Refunded,

5%,

2/15/43

........................................................

5,000

6,546

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Refunding,

5%,

2/15/43

4,590,000

5,603,610

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Refunding,

4%,

2/15/46

19,995,000

22,483,378

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

New

York

State

Dormitory

Authority,

(continued)

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Pre-Refunded,

4%,

2/15/46

........................................................

$

5,000

$

6,215

State

of

New

York

Personal

Income

Tax,

Revenue,

2018A,

Refunding,

5%,

3/15/45

10,000,000

12,321,800

State

of

New

York

Personal

Income

Tax,

Revenue,

2019

D,

Refunding,

3%,

2/15/49

5,000,000

5,291,950

State

of

New

York

Personal

Income

Tax,

Revenue,

2019A,

Refunding,

4%,

3/15/49

10,000,000

11,459,300

State

of

New

York

Sales

Tax,

Revenue,

2014A,

5%,

3/15/31

..................

15,685,000

17,846,707

State

of

New

York

Sales

Tax,

Revenue,

2014A,

5%,

3/15/44

..................

37,250,000

41,660,773

State

of

New

York

Sales

Tax,

Revenue,

2015B,

5%,

3/15/40

..................

12,640,000

14,780,331

State

of

New

York

Sales

Tax,

Revenue,

2015B,

5%,

3/15/41

..................

10,520,000

12,285,361

State

of

New

York

Sales

Tax,

Revenue,

2016

A,

5%,

3/15/34

.................

10,000,000

12,179,600

State

of

New

York

Sales

Tax,

Revenue,

2016

A,

5%,

3/15/35

.................

24,545,000

29,833,466

State

of

New

York

Sales

Tax,

Revenue,

2016

A,

5%,

3/15/36

.................

31,550,000

38,249,327

State

of

New

York

Sales

Tax,

Revenue,

2017

A,

5%,

3/15/41

.................

10,000,000

12,154,300

State

of

New

York

Sales

Tax,

Revenue,

2017

A,

5%,

3/15/42

.................

10,000,000

12,125,400

State

of

New

York

Sales

Tax,

Revenue,

2017

A,

4%,

3/15/46

.................

16,515,000

18,532,307

State

of

New

York

Sales

Tax,

Revenue,

2018

C,

Refunding,

4%,

3/15/44

........

5,310,000

6,063,436

State

of

New

York

Sales

Tax,

Revenue,

2018

E,

Refunding,

5%,

3/15/37

........

15,340,000

19,489,623

State

of

New

York

Sales

Tax,

Revenue,

2018

E,

Refunding,

5%,

3/15/44

........

19,715,000

24,611,812

State

of

New

York

Sales

Tax,

Revenue,

2018A,

5%,

3/15/42

..................

6,235,000

7,721,237

State

of

New

York

Sales

Tax,

Revenue,

2018A,

4%,

3/15/46

..................

25,000,000

28,433,750

State

of

New

York

Sales

Tax,

Revenue,

2018A,

4%,

3/15/48

..................

10,000,000

11,351,700

State

University

Construction

Fund,

Revenue,

2005

A,

AGMC,

FGIC

Insured,

5.5%,

5/15/22

........................................................

5,000,000

5,385,750

State

University

Construction

Fund,

Revenue,

2012A,

5%,

5/15/28

.............

4,000,000

4,253,920

State

University

Construction

Fund,

Revenue,

2012A,

5%,

5/15/29

.............

3,000,000

3,188,190

State

University

Construction

Fund,

Revenue,

2012A,

5%,

5/15/30

.............

1,000,000

1,061,970

State

University

of

New

York,

Revenue,

2012A,

Pre-Refunded,

5%,

7/01/37

......

10,000,000

10,763,700

State

University

of

New

York,

Revenue,

2012A,

Pre-Refunded,

5%,

7/01/42

......

15,000,000

16,145,550

State

University

of

New

York,

Revenue,

2013A,

Pre-Refunded,

5%,

7/01/38

......

5,000,000

5,618,800

State

University

of

New

York,

Revenue,

2013A,

Pre-Refunded,

5%,

7/01/43

......

4,150,000

4,663,604

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/35

........

2,000,000

2,432,300

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/36

........

1,500,000

1,818,300

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/37

........

2,000,000

2,417,320

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/38

........

1,000,000

1,205,470

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/42

........

3,750,000

4,481,063

State

University

of

New

York,

Revenue,

2017

A,

Refunding,

5%,

7/01/46

........

4,000,000

4,749,760

State

University

of

New

York,

Revenue,

2018

A,

5%,

7/01/43

.................

4,300,000

5,185,714

State

University

of

New

York,

Revenue,

2018

A,

5%,

7/01/48

.................

13,925,000

16,685,214

State

University

of

New

York,

Revenue,

2019A,

3%,

7/01/42

..................

4,165,000

4,434,101

State

University

of

New

York,

Revenue,

2019A,

4%,

7/01/43

..................

1,200,000

1,381,008

State

University

of

New

York,

Revenue,

2019A,

4%,

7/01/49

..................

4,250,000

4,842,025

Trustees

of

Columbia

University

in

the

City

of

New

York

(The),

Revenue,

2016A-2,

5%,

10/01/46

...................................................

10,000,000

16,238,100

New

York

State

Environmental

Facilities

Corp.

,

New

York

City

Water

&

Sewer

System,

Revenue,

2013A,

5%,

6/15/31

..........

5,000,000

5,572,600

State

of

New

York

State

Revolving

Fund,

Revenue,

2017

A,

Refunding,

5%,

6/15/46

28,360,000

34,914,280

State

of

New

York

State

Revolving

Fund,

Revenue,

2017

E,

5%,

6/15/42

........

8,355,000

10,357,526

State

of

New

York

State

Revolving

Fund,

Revenue,

2017

E,

5%,

6/15/47

........

12,345,000

15,185,338

State

of

New

York

State

Revolving

Fund,

Revenue,

2018

B,

5%,

6/15/48

........

7,500,000

9,417,900

State

of

New

York

State

Revolving

Fund,

Revenue,

2019

A,

5%,

2/15/49

........

5,000,000

6,435,650

New

York

State

Housing

Finance

Agency

,

Revenue

,

2020

E

,

2.45

%

,

11/01/50

......

3,000,000

3,003,750

New

York

State

Thruway

Authority

,

Revenue,

2019

B,

4%,

1/01/45

........................................

10,000,000

11,416,600

Revenue,

2019

B,

3%,

1/01/46

........................................

4,200,000

4,361,154

Revenue,

2019

B,

4%,

1/01/50

........................................

40,000,000

45,376,800

Revenue,

I,

Pre-Refunded,

5%,

1/01/37

.................................

21,250,000

22,359,887

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

New

York

State

Thruway

Authority,

(continued)

Revenue,

I,

Pre-Refunded,

5%,

1/01/42

.................................

$

45,000,000

$

47,350,350

Revenue,

L,

Refunding,

5%,

1/01/34

...................................

2,600,000

3,213,600

Revenue,

L,

Refunding,

5%,

1/01/35

...................................

3,000,000

3,698,070

Revenue,

N,

4%,

1/01/46

............................................

10,000,000

11,532,500

Revenue,

Junior

Lien,

2016

A,

5%,

1/01/46

..............................

25,000,000

29,072,500

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/27

.................

27,000,000

28,593,000

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/28

.................

11,600,000

12,278,020

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/29

.................

10,000,000

10,595,500

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/30

.................

9,000,000

9,513,630

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/31

.................

10,250,000

10,812,418

Highway

&

Bridge

Trust

Fund,

Revenue,

2012

A,

5%,

4/01/32

.................

11,100,000

11,693,850

New

York

State

Urban

Development

Corp.

,

State

of

New

York

Personal

Income

Tax,

Revenue,

2017

A,

Refunding,

5%,

3/15/38

15,000,000

18,210,900

State

of

New

York

Personal

Income

Tax,

Revenue,

2017C,

Refunding,

5%,

3/15/42

8,400,000

10,241,616

State

of

New

York

Personal

Income

Tax,

Revenue,

2019

A,

5%,

3/15/42

.........

10,000,000

12,421,700

b

New

York

Transportation

Development

Corp.

,

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

5%,

12/01/36

...

200,000

245,970

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

5%,

12/01/37

...

350,000

429,870

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

4%,

12/01/38

...

300,000

337,818

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

4%,

12/01/39

...

400,000

449,844

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

4%,

12/01/40

...

400,000

449,264

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

4%,

12/01/41

...

350,000

391,937

JFK

International

Air

Terminal

LLC,

Revenue,

2020

A,

Refunding,

4%,

12/01/42

...

300,000

335,484

Onondaga

County

Trust

for

Cultural

Resources

,

Syracuse

University,

Revenue,

2019,

Refunding,

5%,

12/01/45

................

5,000,000

6,355,300

Syracuse

University,

Revenue,

2019,

Refunding,

4%,

12/01/47

................

12,000,000

13,964,880

Syracuse

University,

Revenue,

2019,

Refunding,

4%,

12/01/49

................

5,000,000

5,803,600

Oswego

County

Industrial

Development

Agency

,

Oswego

City

School

District

,

Revenue

,

2006

,

XLCA

Insured

,

5

%

,

12/15/30

.............................

1,805,000

1,848,717

Port

Authority

of

New

York

&

New

Jersey

,

Revenue,

194,

Refunding,

5%,

10/15/41

.................................

10,000,000

11,613,400

Revenue,

200,

Refunding,

5%,

10/15/47

.................................

10,000,000

11,910,700

Revenue,

2016,

4%,

9/01/49

.........................................

11,815,000

13,618,678

Revenue,

218,

4%,

11/01/47

.........................................

8,000,000

9,089,760

Revenue,

221,

4%,

7/15/50

..........................................

12,750,000

14,566,747

Revenue,

TWO

HUNDRED

AND

SEVENTEEN,

4%,

11/01/41

................

10,000,000

11,727,400

Revenue,

TWO

HUNDRED

AND

SEVENTEEN,

5%,

11/01/44

................

5,000,000

6,293,750

Revenue,

TWO

HUNDRED

ELEVENTH,

Refunding,

5%,

9/01/48

..............

25,000,000

30,609,250

Revenue,

TWO

HUNDRED

FIFTH,

Refunding,

5%,

11/15/47

.................

26,340,000

31,803,179

Revenue,

TWO

HUNDRED

FOURTEEN,

4%,

9/01/38

......................

7,110,000

8,231,105

Saratoga

County

Capital

Resource

Corp.

,

Skidmore

College

,

Revenue

,

2020

A

,

4

%

,

7/01/50

......................................................

2,250,000

2,588,355

Schenectady

County

Capital

Resource

Corp.

,

Trustees

of

Union

College,

Revenue,

2017,

Refunding,

5%,

1/01/40

............

2,600,000

3,096,756

Trustees

of

Union

College,

Revenue,

2017,

Refunding,

5%,

1/01/47

............

6,590,000

7,754,717

Suffolk

County

Water

Authority

,

Revenue,

2018

A,

4%,

6/01/41

........................................

25,000,000

29,501,000

Revenue,

2020

B,

3%,

6/01/45

........................................

10,000,000

10,990,100

Triborough

Bridge

&

Tunnel

Authority

,

Revenue,

Pre-Refunded,

5.2%,

1/01/27

.................................

20,110,000

21,203,783

Revenue,

1999-B,

Pre-Refunded,

5.5%,

1/01/30

...........................

29,980,000

31,592,924

Revenue,

2013C,

5%,

11/15/38

.......................................

5,000,000

5,497,350

Revenue,

2015

B,

5%,

11/15/45

.......................................

5,000,000

5,817,000

Revenue,

2017A,

Refunding,

5%,

11/15/38

...............................

3,000,000

3,661,800

Revenue,

2017A,

Refunding,

5%,

11/15/42

...............................

5,750,000

6,961,928

Revenue,

2017A,

Refunding,

5%,

11/15/47

...............................

13,000,000

15,627,560

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

See

Abbreviations

on

page

32

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

Triborough

Bridge

&

Tunnel

Authority,

(continued)

Revenue,

2017B,

Refunding,

5%,

11/15/36

...............................

$

21,080,000

$

25,851,036

Revenue,

2017B,

Refunding,

5%,

11/15/37

...............................

18,190,000

22,247,825

Revenue,

2017B,

Refunding,

5%,

11/15/38

...............................

8,055,000

9,831,933

Revenue,

2019A,

5%,

11/15/49

.......................................

9,000,000

11,228,580

Revenue,

2020

A,

5%,

11/15/49

.......................................

10,000,000

12,877,300

Troy

Capital

Resource

Corp.

,

Rensselaer

Polytechnic

Institute,

Revenue,

2020A,

Refunding,

5%,

9/01/35

......

4,500,000

5,621,445

Rensselaer

Polytechnic

Institute,

Revenue,

2020A,

Refunding,

5%,

9/01/36

......

2,000,000

2,489,120

Rensselaer

Polytechnic

Institute,

Revenue,

2020A,

Refunding,

5%,

9/01/39

......

2,500,000

3,085,900

Rensselaer

Polytechnic

Institute,

Revenue,

2020A,

Refunding,

4%,

9/01/40

......

1,500,000

1,684,605

Trust

for

Cultural

Resources

of

The

City

of

New

York

(The)

,

Lincoln

Center

for

the

Performing

Arts,

Inc.,

Revenue,

2020

A,

Refunding,

4%,

12/01/34

.......................................................

1,000,000

1,171,800

Lincoln

Center

for

the

Performing

Arts,

Inc.,

Revenue,

2020

A,

Refunding,

4%,

12/01/35

.......................................................

1,250,000

1,457,862

Utility

Debt

Securitization

Authority

,

Revenue,

2015,

Refunding,

5%,

12/15/33

................................

20,000,000

24,343,000

Revenue,

2015,

Refunding,

5%,

12/15/34

................................

9,950,000

12,099,598

Revenue,

2016

A,

Refunding,

5%,

12/15/34

..............................

33,870,000

41,636,052

Revenue,

2016

B,

Refunding,

5%,

12/15/33

..............................

5,750,000

7,071,925

Revenue,

2017,

5%,

12/15/40

........................................

10,000,000

12,575,500

Revenue,

2017,

5%,

12/15/41

........................................

8,500,000

10,659,595

Western

Nassau

County

Water

Authority

,

Revenue,

2015A,

5%,

4/01/40

........................................

1,400,000

1,619,548

Revenue,

2015A,

5%,

4/01/45

........................................

2,250,000

2,578,252

3,748,128,191

Total

Municipal

Bonds

(Cost

$3,430,122,980)

...................................

3,748,128,191

a

a

a

a

Short

Term

Investments

0.3%

Municipal

Bonds

0.3%

New

York

0.3%

c

Metropolitan

Transportation

Authority

,

Dedicated

Tax

Fund

,

Revenue

,

2008A-1

,

Refunding

,

LOC

TD

Bank

NA

,

Daily

VRDN

and

Put

,

0.09

%

,

11/01/31

...........

5,410,000

5,410,000

c

Nassau

County

Industrial

Development

Agency

,

Cold

Spring

Harbor

Laboratory

,

Revenue

,

1999

,

Refunding

,

SPA

TD

Bank

NA

,

Daily

VRDN

and

Put

,

0.1

%

,

1/01/34

4,105,000

4,105,000

c

Triborough

Bridge

&

Tunnel

Authority

,

Revenue

,

2005

B-2

,

Refunding

,

LOC

Citibank

NA

,

Daily

VRDN

and

Put

,

0.1

%

,

1/01/32

.................................

1,650,000

1,650,000

11,165,000

Total

Municipal

Bonds

(Cost

$11,165,000)

......................................

11,165,000

Total

Short

Term

Investments

(Cost

$11,165,000

)

................................

11,165,000

a

Total

Investments

(Cost

$3,441,287,980)

99.1%

..................................

$3,759,293,191

Other

Assets,

less

Liabilities

0.9%

.............................................

32,981,629

Net

Assets

100.0%

...........................................................

$3,792,274,820

Franklin

New

York

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

November

30,

2020,

the

aggregate

value

of

these

securities

was

$2,718,339,

representing

0.1%

of

net

assets.

b

Security

purchased

on

a

when-issued

basis.

See

Note

1(b).

c

Variable

rate

demand

notes

(VRDNs)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

payment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

November

30,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Franklin

New

York

Tax-Free

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$3,441,287,980

Value

-

Unaffiliated

issuers

..................................................................

$3,759,293,191

Cash

....................................................................................

2,106,285

Receivables:

Capital

shares

sold

........................................................................

1,935,178

Interest

.................................................................................

42,712,911

Other

assets

..............................................................................

942

Total

assets

..........................................................................

3,806,048,507

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

2,622,063

Capital

shares

redeemed

...................................................................

7,651,961

Management

fees

.........................................................................

1,429,340

Distribution

fees

..........................................................................

419,102

Transfer

agent

fees

........................................................................

375,879

Trustees'

fees

and

expenses

.................................................................

1,956

Distributions

to

shareholders

.................................................................

1,220,411

Accrued

expenses

and

other

liabilities

...........................................................

52,975

Total

liabilities

.........................................................................

13,773,687

Net

assets,

at

value

.................................................................

$3,792,274,820

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$3,828,979,801

Total

distributable

earnings

(losses)

.............................................................

(36,704,981)

Net

assets,

at

value

.................................................................

$3,792,274,820

Franklin

New

York

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

November

30,

2020

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

Franklin

New

York

Tax-Free

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$347,367,842

Shares

outstanding

........................................................................

30,750,615

Net

asset

value

per

share

a

..................................................................

$11.30

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96

.25

%

)

................................

$11.74

Class

A1:

Net

assets,

at

value

.......................................................................

$2,867,728,090

Shares

outstanding

........................................................................

253,689,298

Net

asset

value

per

share

a

..................................................................

$11.30

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96

.25

%

)

................................

$11.74

Class

C:

Net

assets,

at

value

.......................................................................

$219,790,603

Shares

outstanding

........................................................................

19,468,478

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$11.29

Class

R6:

Net

assets,

at

value

.......................................................................

$80,916,686

Shares

outstanding

........................................................................

7,148,810

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.32

Advisor

Class:

Net

assets,

at

value

.......................................................................

$276,471,599

Shares

outstanding

........................................................................

24,441,122

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.31

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

New

York

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

November

30,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

Franklin

New

York

Tax-Free

Income

Fund

Investment

income:

Interest:

Unaffiliated

issuers

........................................................................

$63,497,592

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,646,590

Distribution

fees:

(Note

3c

)

Class

A

................................................................................

403,500

Class

A1

...............................................................................

1,444,384

Class

C

................................................................................

773,526

Transfer

agent

fees:

(Note

3e

)

Class

A

................................................................................

101,923

Class

A1

...............................................................................

911,681

Class

C

................................................................................

75,081

Class

R6

...............................................................................

9,893

Advisor

Class

............................................................................

86,042

Custodian

fees

(Note

4

)

......................................................................

10,753

Reports

to

shareholders

......................................................................

57,035

Registration

and

filing

fees

....................................................................

31,636

Professional

fees

...........................................................................

55,241

Trustees'

fees

and

expenses

..................................................................

43,668

Other

....................................................................................

76,354

Total

expenses

.........................................................................

12,727,307

Expense

reductions

(Note

4

)

...............................................................

(17,431)

Net

expenses

.........................................................................

12,709,876

Net

investment

income

................................................................

50,787,716

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

2,807,402

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

67,941,554

Net

realized

and

unrealized

gain

(loss)

............................................................

70,748,956

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$121,536,672

Franklin

New

York

Tax-Free

Income

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

Franklin

New

York

Tax-Free

Income

Fund

Six

Months

Ended

November

30,

2020

(unaudited)

Year

Ended

May

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$50,787,716

$105,736,411

Net

realized

gain

(loss)

.................................................

2,807,402

(29,528,230)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

67,941,554

23,994,576

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

121,536,672

100,202,757

Distributions

to

shareholders:

Class

A

.............................................................

(4,142,146)

(6,354,428)

Class

A1

............................................................

(39,320,873)

(83,758,381)

Class

C

.............................................................

(2,594,178)

(6,360,339)

Class

R6

............................................................

(1,096,116)

(1,991,077)

Advisor

Class

........................................................

(3,843,969)

(6,654,967)

Total

distributions

to

shareholders

..........................................

(50,997,282)

(105,119,192)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

50,030,282

114,517,038

Class

A1

............................................................

(88,640,737)

(286,520,580)

Class

C

.............................................................

(42,005,019)

(74,453,481)

Class

R6

............................................................

7,487,448

9,770,409

Advisor

Class

........................................................

5,379,406

45,428,045

Total

capital

share

transactions

............................................

(67,748,620)

(191,258,569)

Net

increase

(decrease)

in

net

assets

...................................

2,790,770

(196,175,004)

Net

assets:

Beginning

of

period

.....................................................

3,789,484,050

3,985,659,054

End

of

period

..........................................................

$3,792,274,820

$3,789,484,050

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

New

York

Tax-Free

Income

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

A1,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE)

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value.

Debt

securities

generally

trade

in

the

over-the-counter

(OTC)

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value. 

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Securities

Purchased

on

a

When-Issued

Basis

Certain

or

all

Funds

purchase

securities

on

a

when-issued

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

c.

Income

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

November

30,

2020,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Insurance

The

scheduled

payments

of

interest

and

principal

for

each

insured

municipal

security

in

the

Fund

are

insured

by

either

a

new

issue

insurance

policy

or

a

secondary

insurance

policy.

Depending

on

the

type

of

coverage,

premiums

for

insurance

are

either

added

to

the

cost

basis

of

the

security

or

paid

by

a

third

party.

Insurance

companies

typically

insure

municipal

bonds

that

tend

to

be

of

very

high

quality,

with

the

majority

of

underlying

municipal

bonds

rated

A

or

better.

However,

an

event

involving

an

insurer

could

have

an

adverse

effect

on

the

value

of

the

securities

insured

by

that

insurance

company.

There

can

be

no

assurance

the

insurer

will

be

able

to

fulfill

its

obligations

under

the

terms

of

the

policy.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

November

30,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

or

trustees

of

the

following

subsidiaries:

Six

Months

Ended

November

30,

2020

Year

Ended

May

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

6,237,574

$69,983,967

14,011,497

$155,995,526

Shares

issued

in

reinvestment

of

distributions

..........

332,991

3,732,185

530,033

5,913,681

Shares

redeemed

...............................

(2,115,798)

(23,685,870)

(4,285,315)

(47,392,169)

Net

increase

(decrease)

..........................

4,454,767

$50,030,282

10,256,215

$114,517,038

Class

A1

Shares:

Shares

sold

...................................

2,267,930

$25,446,313

6,825,926

$76,138,397

Shares

issued

in

reinvestment

of

distributions

..........

2,911,789

32,661,347

6,238,602

69,686,416

Shares

redeemed

...............................

(13,090,047)

(146,748,397)

(38,948,870)

(432,345,393)

Net

increase

(decrease)

..........................

(7,910,328)

$(88,640,737)

(25,884,342)

$(286,520,580)

Class

C

Shares:

Shares

sold

...................................

989,478

$11,096,283

3,447,571

$38,552,600

Shares

issued

in

reinvestment

of

distributions

..........

218,126

2,444,476

521,529

5,818,140

Shares

redeemed

a

..............................

(4,955,429)

(55,545,778)

(10,698,105)

(118,824,221)

Net

increase

(decrease)

..........................

(3,747,825)

$(42,005,019)

(6,729,005)

$(74,453,481)

Class

R6

Shares:

Shares

sold

...................................

1,173,763

$13,144,420

2,366,953

$26,384,934

Shares

issued

in

reinvestment

of

distributions

..........

97,452

1,094,573

178,031

1,991,044

Shares

redeemed

...............................

(602,239)

(6,751,545)

(1,703,636)

(18,605,569)

Net

increase

(decrease)

..........................

668,976

$7,487,448

841,348

$9,770,409

Advisor

Class

Shares:

Shares

sold

...................................

2,955,455

$33,125,586

8,868,766

$98,228,998

Shares

issued

in

reinvestment

of

distributions

..........

306,985

3,446,435

529,242

5,911,567

Shares

redeemed

...............................

(2,782,929)

(31,192,615)

(5,302,476)

(58,712,520)

Net

increase

(decrease)

..........................

479,511

$5,379,406

4,095,532

$45,428,045

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

period

ended

November

30,

2020,

the

annualized

gross

effective

investment

management

fee

rate

was

0.454%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

and

A1

reimbursement

distribution

plans,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

In

excess

of

$20

billion

Class

A

....................................................................................

0.25%

Class

A1

...................................................................................

0.10%

Class

C

....................................................................................

0.65%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$23,286

CDSC

retained

..............................................................................

$26,520

3.

Transactions

with

Affiliates

(continued)

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

November

30,

2020,

the

Fund

paid

transfer

agent

fees

of

$1,184,620,

of

which $604,359

was

retained

by

Investor

Services.

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

September

30,

2021.

Investor

Services

may

discontinue

this

waiver

in

the

future.

There

were

no

Class

R6

transfer

agent

fees

waived

during

the

reporting

period.

g.

Interfund

Transactions

The

Fund

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

period

ended

November

30,

2020,

these

purchase

and

sale

transactions

aggregated

$58,785,000

and

$18,900,000,

respectively.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

November

30,

2020,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

May

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

November

30,

2020,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$81,867,515

Long

term

................................................................................

278,291,661

Total

capital

loss

carryforwards

...............................................................

$360,159,176

Cost

of

investments

..........................................................................

$3,440,627,011

Unrealized

appreciation

........................................................................

$319,108,822

Unrealized

depreciation

........................................................................

(442,642)

Net

unrealized

appreciation

(depreciation)

..........................................................

$318,666,180

3.

Transactions

with

Affiliates

(continued)

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

defaulted

securities,

wash

sales

and

bond

workout

expenditures.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

November

30,

2020,

aggregated

$230,227,714

and

$284,194,268,

respectively.

7.

Concentration

of

Risk

The

Fund

invests

a

large

percentage

of

its total

assets

in

obligations

of

issuers

within

New

York

and

U.S.

territories.

Such

concentration

may

subject

the

Fund

to

risks

associated

with

industrial

or

regional

matters,

and

economic,

political

or

legal

developments

occurring

within

New

York.

In

addition,

investments

in

these

securities

are

sensitive

to

interest

rate

changes

and

credit

risk

of

the

issuer

and

may

subject

the

Fund

to

increased

market

volatility.

The

market

for

these

investments

may

be

limited,

which

may

make

them

difficult

to

buy

or

sell.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matures

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

November

30,

2020,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund’s

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

5.

Income

Taxes

(continued)

Franklin

New

York

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

November

30,

2020,

all

of

the

Fund's

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

11.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

LIBOR

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

AGMC

Assured

Guaranty

Municipal

Corp.

AMBAC

American

Municipal

Bond

Assurance

Corp.

FGIC

Financial

Guaranty

Insurance

Co..

FHA

Federal

Housing

Administration

FNMA

Federal

National

Mortgage

Association

GO

General

Obligation

LOC

Letter

of

Credit

NATL

National

Reinsurance

Corp.

SPA

Standby

Purchase

Agreement

XLCA

XL

Capital

Assurance,

Inc.

10.

Fair

Value

Measurements

(continued)

Franklin

New

York

Tax-Free

Income

Fund

Shareholder

Information

33

franklintempleton.com

Semiannual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

1115

S

01/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

New

York

Tax-Free

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

 Principal Accountant Fees and Services.            N/A

                      

Item 5. Audit Committee

of Listed Registrants.              N/A

Item 6.  Schedule of Investments.                           N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.                     N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                                     N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.              N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

  Evaluation of Disclosure Controls and Procedures.  The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b)

 Changes in Internal Controls. During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                            N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 906

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.

FRANKLIN NEW YORK TAX-FREE INCOME FUND

By ___S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

Chief Executive Officer - Finance and Administration

Date  January 26, 2021

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.

By ___S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

Chief Executive Officer - Finance and Administration

Date  January 26, 2021

By ___S\ROBERT G. KUBILIS______________________

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

Date  January 26, 2021