0000205802 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017917Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017918Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017919Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017920Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000060417Member 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017918Member rr:AfterTaxesOnDistributionsMember 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:C000017918Member rr:AfterTaxesOnDistributionsAndSalesMember 2015-01-31 2016-01-30 0000205802 putnamcom:S000006568Member putnamcom:BarclayMunicipalBondIndexMember 2015-01-31 2016-01-30 iso4217:USD xbrli:pure 485BPOS 2015-09-30 PUTNAM TAX EXEMPT INCOME FUND 0000205802 false 2016-01-28 2016-01-30 2016-01-30 <b>Fund summary</b> <b>Goal</b> Putnam Tax Exempt Income Fund seeks as high a level of current income exempt from federal income tax as we believe to be consistent with preservation of capital. <b>Fees and expenses</b> The following table describes the fees and expenses you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in class A shares or $50,000 in class M shares of Putnam funds. More information about these and other discounts is available from your financial advisor and in <i>How do I buy fund shares?</i> beginning on page 13 of the fund&#8217;s prospectus and in <i>How to buy shares </i>beginning on page II-1 of the fund's statement of additional information (SAI). <b>Shareholder fees </b><i>(fees paid directly from your investment) 0 0.0400 0 0.0325 0 0.0100 0.0100 0.0500 0 0 <div style="display: none">~ http://xbrl.sec.gov/rr/role/ShareholderFeesData column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <b>Annual fund operating expenses </b><i>(expenses you pay each year as a percentage of the value of your investment)</i> 0.0043 0.0043 0.0043 0.0043 0.0043 0.0100 0.0022 0.0085 0.0050 0.0010 0.0010 0.0010 0.0010 0.0010 0.0153 0.0075 0.0138 0.0103 0.0053 <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in class A shares or $50,000 in class M shares of Putnam funds. More information about these and other discounts is available from your financial advisor and in <i>How do I buy fund shares?</i> beginning on page 13 of the fund's prospectus and in <i>How to buy shares </i>beginning on page II-1 of the fund's statement of additional information (SAI). 50000 <b>Example</b> The following hypothetical example is intended to help you compare the cost of investing in the fund with the cost of investing in other funds. It assumes that you invest $10,000 in the fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year and that the fund's operating expenses remain the same. Your actual costs may be higher or lower. 1824 1293 1485 1543 665 834 800 955 875 296 483 630 737 642 170 256 474 640 427 54 1824 1485 834 755 483 437 156 140 <div style="display: none">~ http://xbrl.sec.gov/rr/role/ExpenseExample column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/ExpenseExampleNoRedemption column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <b>Investments</b> We invest mainly in bonds that pay interest that is exempt from federal income tax (but that may be subject to federal alternative minimum tax (AMT)), are investment-grade in quality, and have intermediate- to long-term maturities (three years or longer). Under normal circumstances, we invest at least 80% of the fund's net assets in tax-exempt investments, which for purposes of this policy exclude investments paying interest subject to the federal AMT for individuals. This investment policy cannot be changed without the approval of the fund's shareholders. We may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. <b>Risks</b> It is important to understand that you can lose money by investing in the fund.<br /> <br /> The value of bonds in the fund&#8217;s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention in the financial markets, and factors related to a specific issuer. Bond markets may, in response to government intervention, economic or market developments, or other factors, experience periods of high volatility and reduced liquidity.<br /> <br /> The risks associated with bond investments include interest rate risk, which means the value of the fund's investments is likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the issuers of the fund's investments may default on payment of interest or principal. Since the fund invests in tax-exempt bonds, which, to be treated as tax-exempt under the Internal Revenue Code, may be issued only by limited types of issuers for limited types of projects, the fund's investments may be focused in certain market segments. Consequently, the fund may be more vulnerable to fluctuations in the values of the securities it holds than a fund that invests more broadly. Interest rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Interest the fund receives might be taxable.<br /> <br /> The fund may not achieve its goal, and it is not intended to be a complete investment program. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. It is important to understand that you can lose money by investing in the fund. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. <b>Performance</b> The performance information below gives some indication of the risks associated with an investment in the fund by showing the fund's performance year to year and over time. The bar chart does not reflect the impact of sales charges. If it did, performance would be lower. Please remember that past performance is not necessarily an indication of future results. Monthly performance figures for the fund are available at putnam.com. putnam.com The performance information below gives some indication of the risks associated with an investment in the fund by showing the fund&#146;s performance year to year and over time. Please remember that past performance is not necessarily an indication of future results. <b>Annual total returns for class A shares before sales charges</b> 0.0421 0.0241 -0.0951 0.1794 0.0249 0.1078 0.0880 -0.0410 0.0993 0.0265 The bar chart does not reflect the impact of sales charges. If it did, performance would be lower. <div style="display: none">~ http://xbrl.sec.gov/rr/role/BarChartData column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> Best calendar quarter<br /><b>Q3 2009&#160;&#160;9.43%<br /><br /></b>Worst calendar quarter<br /><b>Q4 2008 &#160;-4.81%</b> Best calendar quarter Worst calendar quarter 2009-09-30 0.0943 2008-12-31 -0.0481 <b>Average annual total returns after sales charges </b><i>(for periods ending 12/31/15)</i> After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are shown for class A shares only and will vary for other classes. These after-tax returns do not apply if you hold your fund shares through a 401(k) plan, an IRA, or another tax-advantaged arrangement.<br /> <br /> Class B share performance reflects conversion to class A shares after eight years. 0.0347 0.0387 0.0379 0.0366 0.0449 0.0386 0.0392 0.0472 0.0465 0.0460 0.0446 0.0448 0.0570 0.0459 0.0449 0.0535 0.0085 -0.0146 -0.0294 -0.0087 0.0286 -0.0146 0.0075 0.0330 After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns are shown for class A shares only and will vary for other classes. <div style="display: none">~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * column dei_LegalEntityAxis compact putnamcom_S000006568Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> The fund pays transaction-related costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher turnover rate may indicate higher transaction costs and may result in higher taxes when the fund's shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or the above example, affect fund performance. The fund's turnover rate in the most recent fiscal year was 16%. 0.16 <b>Portfolio turnover</b> Applies only to certain redemptions of shares bought with no initial sales charge. This charge is phased out over six years. This charge is eliminated after one year. Represents a blended rate.