Exhibit 99.(d)(iii)

                         EXPENSE REIMBURSEMENT AGREEMENT

         THIS EXPENSE REIMBURSEMENT AGREEMENT (this "Agreement") is made and
entered into this 1st day of October 2004 between Lord, Abbett & Co. LLC ("Lord
Abbett") and Lord Abbett Tax-Free Income Fund, Inc. (the "Tax-Free Fund") with
respect to the Lord Abbett National Tax-Free Income Fund, Lord Abbett California
Tax-Free Income Fund High, Lord Abbett Connecticut Tax-Free Income Fund, Lord
Abbett Hawaii Tax-Free Income Fund, Lord Abbett Minnesota Tax-Free Income Fund,
Lord Abbett Missouri Tax-Free Income Fund, Lord Abbett New Jersey Tax-Free
Income Fund, Lord Abbett New York Tax-Free Income Fund, Lord Abbett Texas
Tax-Free Income Fund, Lord Abbett Washington Tax-Free Income Fund (the "Fund").

         In consideration of good and valuable consideration, receipt of which
is hereby acknowledged, it is agreed as follows:

         1.   Lord Abbett agrees to bear directly and/or reimburse the Fund for
              expenses if and to the extent that Total Operating Expenses exceed
              or would otherwise exceed an annual rate of (a) ninety-five basis
              points (.95%) for Class A shares of the Fund (b) one hundred and
              sixty basis points (1.60%) for Class B shares of the Fund if
              applicable (c) one hundred and sixty basis points (1.60%) for
              Class C shares of the Fund if applicable (d) one hundred and five
              basis points (1.05%) for Class P shares of the Fund of the average
              daily net assets in the Fund for the time period set forth below.

         2.   Lord Abbett's commitment described in paragraph 1 will be
              effective from October 1, 2004 through September 30, 2005.


         IN WITNESS WHEREOF, Lord Abbett and the Tax-Free Fund have caused this
Agreement to be executed by a duly authorized member and officer, respectively,
and the Tax-Free Fund has affixed its corporate seal hereto, all on the day and
year first above written.

                                       LORD ABBETT TAX-FREE  INCOME FUND


                                       By:   /s/ Robert S. Dow
                                             -----------------
                                             Robert S. Dow
                                             Chairman of the Board


                                       LORD, ABBETT & CO. LLC


                                       By:   /s/ Paul A. Hilstad
                                             -------------------
                                             Paul A. Hilstad
                                             Member and General Counsel