UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04254

Legg Mason Partners Income Trust

(Exact name of registrant as specified in charter)

55 Water Street, New York, NY 10041

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code:

Funds Investor Services 1-800-822-5544

or

Institutional Shareholder Services 1-888-425-6432

Date of fiscal year end: November 30

Date of reporting period: August 31, 2009

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS INCOME TRUST

LEGG MASON WESTERN ASSET MASSACHUSETTS

MUNICIPALS FUND (FORMERLY KNOWN AS LEGG MASON

PARTNERS MASSACHUSETTS MUNICIPALS FUND)

FORM N-Q

AUGUST 31, 2009

Legg Mason Western Asset Massachusetts Municipals Fund

Schedule of Investments (unaudited) August 31, 2009

	Face Amount	Security		Value
	MUNICIPAL BONDS - 95.1%
	Education - 35.9%
$	6,000,000	Massachusetts Educational Financing Authority Education Loan Revenue, 6.125% due 1/1/22 (a)	$	6,202,380
		Massachusetts State DFA Revenue:
	1,105,000	Assumption College, Radian, 5.750% due 3/1/20		1,085,397
		Belmont Hill School:
	1,350,000	5.000% due 9/1/23		1,397,655
	1,420,000	5.000% due 9/1/24		1,450,956
	1,170,000	5.000% due 9/1/26		1,186,930
	3,470,000	Boston College, 5.000% due 7/1/38		3,496,580
		Boston University:
	1,300,000	5.600% due 10/1/35		1,335,191
		AMBAC:
	1,000,000	5.000% due 10/1/35		961,920
	4,000,000	5.000% due 10/1/39		3,803,080
	1,000,000	Curry College, ACA, 6.000% due 3/1/31		935,950
	5,250,000	Mount Holyoke College, 5.000% due 7/1/36		5,309,430
	1,070,000	Williston Northampton School Project, XLCA, 5.000% due 10/1/25		996,095
		Massachusetts State Educational Financing Authority Revenue, Issue E, AMBAC:
	1,445,000	5.000% due 1/1/13 (a)		1,443,714
	1,985,000	5.300% due 1/1/16 (a)		1,980,832
		Massachusetts State HEFA Revenue:
	2,500,000	Berklee College of Music, 5.000% due 10/1/32		2,436,425
	6,000,000	Northeastern University, 5.000% due 10/1/33		5,804,040
	5,000,000	University of Massachusetts Building Authority Project Revenue, FSA, 5.000% due 5/1/38		5,091,150
		Total Education		44,917,725
	Health Care - 11.2%
		Massachusetts State DFA Revenue:
	1,300,000	First Mortgage, Edgecombe Project, 6.750% due 7/1/26		1,201,642
	1,000,000	Massachusetts Biomedical Research Corp., 6.250% due 8/1/20		1,032,730
	1,000,000	May Institute Issue Inc., Radian, 5.750% due 9/1/29		810,480
	1,000,000	Neville Community, GNMA-Collateralized, 6.000% due 6/20/44		1,055,340
		Massachusetts State HEFA Revenue:
		Berkshire Health Systems:
	1,000,000	6.250% due 10/1/31		1,005,280
	750,000	Radian, 5.700% due 10/1/25		746,835
	2,000,000	Caritas Christi Obligation, 6.750% due 7/1/16		2,046,980
	350,000	CARS Medical Center of Central Massachusetts, AMBAC, 11.700% due 6/23/22 (b)		382,648
	1,000,000	Milford Regional Medical Center, 5.000% due 7/15/27 Refunding:		813,580
		Healthcare Systems, Covenant Health:
	795,000	6.500% due 7/1/17		834,710
	590,000	6.000% due 7/1/31		590,608
		Partners Healthcare Systems:
	1,250,000	5.000% due 7/1/18		1,331,500
	250,000	5.000% due 7/1/19		263,382
	400,000	5.000% due 7/1/20		417,608
	1,500,000	University of Massachusetts, Memorial Health Care Inc., 6.625% due 7/1/32		1,510,425
		Total Health Care		14,043,748

See Notes to Schedule of Investments.

1

Legg Mason Western Asset Massachusetts Municipals Fund

Schedule of Investments (unaudited) (continued) August 31, 2009

	Face Amount	Security		Value
	Housing - 6.4%
		Framingham, MA, Housing Authority Mortgage Revenue, Beaver Terrace
		Apartments, GNMA-Collateralized:
$	400,000	6.200% due 2/20/21	$	426,488
	1,200,000	6.350% due 2/20/32		1,289,652
	2,000,000	Massachusetts State HFA Housing Revenue, Single-Family Housing, 4.850% due 12/1/35 (a)(c)		1,744,520
		Massachusetts State Housing Finance Agency:
	975,000	Housing, 4.500% due 6/1/38		872,050
		Housing Revenue:
	2,000,000	Single-Family, 4.850% due 12/1/22 (a)		2,003,480
	1,970,000	Single-Family Housing, FSA, 4.875% due 12/1/38 (a)(c)		1,723,100
		Total Housing		8,059,290
	Industrial Revenue - 1.5%
	860,000	Boston, MA, Industrial Development Financing Authority Revenue, Roundhouse Hospitality LLC Project, 7.875% due 3/1/25 (a)		701,932
		Massachusetts State:
	1,075,000	IFA Revenue, Refunding Bonds, Chelsea Jewish Nursing Home, FHA, 6.500% due 8/1/37		1,112,926
	80,000	Water Pollution Abatement Trust, Unrefunded Balance, 6.375% due 2/1/15		80,313
		Total Industrial Revenue		1,895,171
	Leasing - 1.5%
	1,000,000	Massachusetts State DFA Revenue, Applewild School Issue, Radian, 5.750% due 8/1/29		869,630
	1,000,000	Virgin Islands PFA Revenue Matching Fund Loan Notes, Subordinated Lien, 5.750% due 10/1/13		1,005,830
		Total Leasing		1,875,460
	Local General Obligation - 2.1%
	1,000,000	Quaboag, MA, Regional School District, GO, State Qualified, FSA, State Aid Withholding, 5.500% due 6/1/20		1,022,320
	1,500,000	Westwood, MA, GO, NATL, 5.375% due 6/1/17		1,635,210
		Total Local General Obligation		2,657,530
	Other - 0.5%
	665,000	University of Virgin Islands, Refunding & Improvement, ACA, 6.000% due 12/1/19		584,508
	Power - 5.0%
	1,000,000	Massachusetts State DFA Revenue, Devens Electric Systems, 6.000% due 12/1/30		988,070
	5,000,000	Puerto Rico Electric Power Authority Revenue, 5.375% due 7/1/23		5,215,500
		Total Power		6,203,570
	Pre-Refunded/Escrowed to Maturity - 12.5%
	2,750,000	Massachusetts State, Project, NATL, 5.250% due 10/1/20 (d)		2,879,525
		Massachusetts State DFA Revenue:
	1,000,000	Briarwood, 8.250% due 12/1/30 (d)		1,099,290
	1,000,000	VOA Concord, GNMA-Collateralized, 6.900% due 10/20/41 (d)		1,176,320
	1,000,000	Western New England College, AMBAC, 5.250% due 7/1/20 (d)		1,059,970
		Massachusetts State HEFA Revenue:
	1,000,000	Milford-Whitinsville Hospital, 6.350% due 7/15/32 (d)		1,140,280
		Refunding, Healthcare Systems Covenant Health:
	205,000	6.500% due 7/1/17 (d)		231,959
	160,000	6.000% due 7/1/31 (d)		179,210

See Notes to Schedule of Investments.

2

Legg Mason Western Asset Massachusetts Municipals Fund

Schedule of Investments (unaudited) (continued) August 31, 2009

	Face Amount	Security		Value
	Pre-Refunded/Escrowed to Maturity - 12.5% (continued)
$	2,500,000	University of Massachusetts, Project, NATL, 5.250% due 10/1/31 (d)	$	2,761,825
	1,415,000	Winchester Hospital, 6.750% due 7/1/30 (d)		1,501,428
	1,180,000	Massachusetts State Port Authority Revenue, 13.000% due 7/1/13 (e)		1,451,424
	1,000,000	Massachusetts State Special Obligation Revenue, Consolidated Loan, FGIC, 5.000% due 6/1/22 (d)		1,089,220
	1,000,000	Northern Mariana Islands Commonwealth GO, 7.375% due 6/1/30 (d)		1,051,400
		Total Pre-Refunded/Escrowed to Maturity		15,621,851
	Special Tax Obligation - 7.5%
	1,000,000	Boston, MA, Convention Center Act, Special Obligation, AMBAC, 5.000% due 5/1/25		1,009,850
	6,000,000	Massachusetts State, Special Obligation Dedicated Tax Revenue, FGIC, 5.500% due 1/1/34		6,221,040
	2,000,000	Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, 6.000% due 8/1/42		2,092,620
		Total Special Tax Obligation		9,323,510
	State General Obligation - 4.2%
	4,500,000	Massachusetts State, GO, 5.000% due 11/1/16		5,207,715
	Transportation - 5.5%
	2,000,000	Massachusetts State Port Authority Revenue, AMBAC, 5.000% due 7/1/25		2,109,320
	5,050,000	Massachusetts State Turnpike Authority, Metropolitan Highway Systems Revenue, AMBAC, 5.000% due 1/1/39		4,782,350
		Total Transportation		6,891,670
	Water & Sewer - 1.3%
	1,000,000	Boston, MA, Water & Sewer Commission Revenue, Senior, 5.000% due 11/1/24		1,058,110
	485,000	Massachusetts State, Water Pollution Abatement Trust, Pool Program, Unrefunded Balance, 5.250% due 8/1/28		504,415
		Total Water & Sewer		1,562,525
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $117,430,791)		118,844,273
	SHORT-TERM INVESTMENTS - 4.7%
	Education - 2.0%
		Massachusetts State DFA Revenue:
		Boston University:
	600,000	LOC-Allied Irish Bank PLC, 0.120%, 9/1/09 (f)		600,000
	100,000	LOC-Bank of America N.A., 0.120%, 9/1/09 (f)		100,000
	100,000	College of the Holy Cross, LOC-Bank of America N.A., 0.120%, 9/1/09 (f)		100,000
		Massachusetts State HEFA Revenue:
	1,500,000	Museum of Fine Arts, SPA-Bank of America N.A., 0.130%, 9/1/09 (f)		1,500,000
	100,000	Northeastern University, LOC-JPMorgan Chase, 0.130%, 9/1/09 (f)		100,000
	100,000	Refunding, Harvard University, 0.100%, 9/1/09 (f)		100,000
		Total Education		2,500,000
	General Obligation - 2.3%
	800,000	Commonwealth of Puerto Rico, GO, Refunding, Public Improvements, FSA, SPA-Dexia Credit Local, 0.100%, 9/1/09 (f)		800,000
		Massachusetts State, GO:
	100,000	Central Artery, SPA-State Street Bank & Trust Co., 0.110%, 9/1/09 (f)		100,000
		Consolidated Loan:
	1,600,000	SPA-Bank of America, 0.150%, 9/1/09 (f)		1,600,000

See Notes to Schedule of Investments.

3

Legg Mason Western Asset Massachusetts Municipals Fund

Schedule of Investments (unaudited) (continued) August 31, 2009

	Face Amount	Security		Value
	General Obligation - 2.3% (continued)
$	400,000	SPA-Dexia Credit Local, 0.170%, 9/1/09 (f)	$	400,000
		Total General Obligation		2,900,000
	Health Care - 0.1%
	100,000	Massachusetts State HEFA Revenue, Partners Healthcare Systems, 0.100%, 9/1/09 (f)		100,000
	Miscellaneous - 0.1%
	200,000	Massachusetts State HEFA Revenue, Museum of Fine Arts, SPA-Bank of America N.A., 0.120%, 9/1/09 (f)		200,000
	Water & Sewer - 0.2%
	200,000	Massachusetts State Water Resources Authority, SPA-Dexia Credit Local, 0.550%, 9/2/09 (f)		200,000
		TOTAL SHORT-TERM INVESTMENTS (Cost - $5,900,000)		5,900,000
		TOTAL INVESTMENTS - 99.8% (Cost - $123,330,791#)		124,744,273
		Other Assets in Excess of Liabilities - 0.2%		284,163
		TOTAL NET ASSETS - 100.0%	$	125,028,436

(a) Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).

(b) Inverse floating rate security - coupon varies inversely with level of short-term tax-exempt interest rates.

(c) Variable rate security. Interest rate disclosed is that which is in effect at August 31, 2009.

(d) Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.

(e) Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.

(f) Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice. Date shown is the date of the next interest rate change.

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:

ACA
AMBAC CARS DFA FGIC FHA FSA GNMA GO HEFA HFA IFA LOC NATL PFA Radian SPA XLCA — American Capital Assurance - Insured Bonds — American Municipal Bond Assurance Corporation - Insured Bonds — Complimentary Auction Rate Securities — Development Finance Agency — Financial Guaranty Insurance Company - Insured Bonds — Federal Housing Administration — Financial Security Assurance - Insured Bonds — Government National Mortgage Association — General Obligation — Health & Educational Facilities Authority — Housing Finance Authority — Industrial Finance Agency — Letter of Credit — National Public Finance Guarantee Corporation - Insured Bonds — Public Facilities Authority — Radian Asset Assurance - Insured Bonds — Standby Bond Purchase Agreement - Insured Bonds — XL Capital Assurance Inc. - Insured Bonds

See Notes to Schedule of Investments.

4

Legg Mason Western Asset Massachusetts Municipals Fund

Schedule of Investments (unaudited) (continued) August 31, 2009

Ratings Table* S&P/Moody’s/Fitch**
AAA/Aaa	17.8	%
AA/Aa	31.9
A	30.8
BBB/Baa	12.9
A-1/VMIG1	4.7
NR	1.9
	100.0	%

* As a percentage of total investments.

** In the event that a security is rated by multiple nationally recognized statistical rating organizations (“NRSROs”) and receives different ratings, the fund will treat the security as being rated in the highest rating category received from an NRSRO.

See pages 6 and 7 for definitions of ratings.

See Notes to Schedule of Investments.

5

Bond Ratings (unaudited)

The definitions of the applicable rating symbols are set forth below:

Standard & Poor’s Ratings Service (“Standard & Poor’s”) — Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.

AAA — Bonds rated “AAA” have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

AA — Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A — Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

BBB — Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.

BB, B, CCC, CC and C — Bonds rated “BB”, “B”, “CCC”, “CC” and “C” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents the lowest degree of speculation and “C” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

D — Bonds rated “D” are in default and payment of interest and/or repayment of principal is in arrears.

Moody’s Investors Service (“Moody’s”) — Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa” to “Caa,” where 1 is the highest and 3 the lowest ranking within its generic category.

Aaa — Bonds rated “Aaa” are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes can be visualized as most unlikely to impair the fundamentally strong position of such issues.

Aa — Bonds rated “Aa” are judged to be of high quality by all standards. Together with the “Aaa” group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in “Aaa” securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in “Aaa” securities.

A — Bonds rated “A” possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future.

Baa — Bonds rated “Baa” are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Ba — Bonds rated “Ba” are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

6

Bond Ratings (unaudited) (continued)

B — Bonds rated “B” generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

Caa — Bonds rated “Caa” are of poor standing. These may be in default, or present elements of danger may exist with respect to principal or interest.

Ca — Bonds rated “Ca” represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings.

C —Bonds rated “C” are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

Fitch Ratings Service (“Fitch”) — Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (–) sign to show relative standings within the major rating categories.

AAA — Bonds rated “AAA” have the highest rating assigned by Fitch. Capacity to pay interest and repay principal is extremely strong.

AA — Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A — Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

BBB — Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.

BB, B, CCC and CC — Bonds rated “BB”, “B”, “CCC” and “CC” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents a lower degree of speculation than “B”, and “CC” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

NR — Indicates that the bond is not rated by Standard & Poor’s, Moody’s or Fitch.

Short-Term Security Ratings (unaudited)

SP-1 — Standard & Poor’s highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

A-1 — Standard & Poor’s highest commercial paper and variable-rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

VMIG 1 — Moody’s highest rating for issues having a demand feature — VRDO.

MIG1 — Moody’s highest rating for short-term municipal obligations.

P-1 — Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating.

F1 — Fitch’s highest rating indicating the strongest capacity for timely payment of financial commitments; those issues determined to possess overwhelming strong credit feature are denoted with a plus (+) sign.

7

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason Western Asset Massachusetts Municipals Fund (formerly known as Legg Mason Partners Massachusetts Municipals Fund) (the “Fund”) is a separate non-diversified investment series of Legg Mason Partners Income Trust (the “Trust”). The Trust, a Maryland business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Trustees. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

The Fund has adopted Statement of Financial Accounting Standards No. 157 (“FAS 157”). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach, income approach and/or cost approach, depending on the type of the security and the particular circumstances.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)	Total
Municipal bonds†	—	$	118,844,273	—	$	118,844,273
Short-term investments†	—		5,900,000	—		5,900,000
Total	—	$	124,744,273	—	$	124,744,273

† See Schedule of Investments for additional detailed categorizations.

(b) Inverse Floaters. The Fund may participate either in structuring an inverse floater or purchasing an inverse floater in the secondary market. An inverse floater generally has a floating or variable rate of interest that moves in the opposite direction of market interest rates. So, when short-term interest rates move in an upward direction, the interest rate paid on the inverse floater decreases, and vice versa when market interest rates decrease. Inverse floaters also generally respond more rapidly to market interest rate changes than fixed rate securities. Inverse floaters are subject to interest rate and leveraging risks.

When structuring an inverse floater, the Fund will transfer to a trust fixed-rate tax-exempt municipal bonds purchased by the Fund. The trust then typically issues two tranches of variable rate securities that are collateralized by the cash flows of the fixed-rate tax-exempt municipal bonds. The two tranches are known as an inverse floater and a variable rate demand obligation (“VRDO”). The VRDO pays interest based on a floating rate set by a remarketing agent at predetermined intervals. The inverse floater, also known as a residual interest tax-exempt security (a “RITES”), is transferred to the Fund, which receives interest based on the remaining cash flow of the trust, after payment of interest

8

Notes to Schedule of Investments (unaudited) (continued)

on the VRDO and various expenses of the trust. When structuring an inverse floater, the Fund would also be required to retain the municipal bond on its balance sheet and recognize a liability for the VRDO tranch of the trust, along with the periodic interest expense associated with the VRDO. Both the municipal bond and the VRDO are marked to market when the Fund determines its net asset value.

When the Fund purchases an inverse floater in the secondary market, it is required to mark the inverse floater to market when determining net asset value. Interest income is accrued as earned and unrealized gains or losses are recognized when marked to market.

The inverse floater held by the Fund as of August 31, 2009 was acquired in the secondary market.

(c) Fund Concentration. Since the Fund invests primarily in obligations of issuers within Massachusetts, it is subject to possible concentration risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Massachusetts.

(d) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At August 31, 2009, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	3,204,815
Gross unrealized depreciation		(1,791,333	)
Net unrealized appreciation	$	1,413,482

3. Derivative Instruments and Hedging Activities

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161, “Disclosure about Derivative Instruments and Hedging Activities,” requires enhanced disclosure about an entity’s derivative and hedging activities.

As of August 31, 2009, the Fund did not have any open futures contracts but had an average market value of $17,737,211 on futures contracts (to sell).

9

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

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.

Legg Mason Partners Income Trust

By	/S/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer

Date: October 26, 2009

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/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: October 26, 2009
By	/S/    FRANCES M. GUGGINO
	Frances M. Guggino
	Chief Financial Officer
Date: October 26, 2009