DTF Tax-Free Income Inc

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless specifically requested from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect at any time to receive not only shareholder reports but also certain other communications from the Fund electronically, or you may elect to receive paper copies of all future shareholder reports free of charge to you. (Please note that the Fund will incur additional expenses when printing and mailing any paper shareholder reports, and Fund expenses pass indirectly to all shareholders.) If you own your shares directly with the Fund, you may make such elections by calling AST, the Fund’s transfer agent, at 1-866-668-8552 or, with respect to requesting electronic delivery, by visiting www.astfinancial.com. If you own your shares through a financial intermediary, please contact your financial intermediary to make your request and to determine whether your election will apply to all funds in which you own shares through that intermediary.

We begin our discussion of DTF Tax-Free Income Inc. (the “DTF Fund” or the “Fund”) for the six months ended April 30, 2019 with a review of the municipal market environment in which the DTF Fund invests.

The municipal bond market experienced solid performance over the six months ended April 30, 2019, as municipal interest rates moved sharply lower during this period. Since the end of October 2018, 10-year and 30-year AAA-rated tax-exempt municipal bond yields have declined by close to 80 basis points (bps). During this same time period, 10-year and 30-year U.S. Treasury bond yields declined by 64 and 46 bps respectively, helping municipal bond returns to outpace U.S. Treasury returns over this same time frame. The strong performance of tax-exempt municipal bonds has been mostly driven by lower U.S. Treasury yields, record inflows so far in 2019 into tax-exempt mutual funds and very manageable levels of newly issued municipal bonds. Additionally, re-investment proceeds (bond calls, maturities and coupon payments) have exceeded new issuance levels in 2019, further helping tilt the balance of supply and demand in favor of strong relative municipal performance. Municipal bond yields (along with most fixed income yields) were helped in March by comments made by the Federal Open Market Committee (“FOMC”), the committee within the Federal Reserve that sets domestic monetary policy, that it will be patient as it determines what future adjustments to the target Federal Funds rate may be appropriate. This was mostly interpreted as a signal to municipal bond investors that the FOMC will keep the Federal Funds target rate unchanged for the foreseeable future (after previous comments had suggested future rate increases in 2019). The end result of these positive market technicals and the perception that the FOMC will be refraining from further rate hikes for the time being was a total return of 5.68% for the Bloomberg Barclays Municipal Bond Index over the six months ended April 30, 2019.

Over the past six months ended April 30, 2019, intermediate and longer maturity bonds outpaced bonds with the shortest maturities as municipal interest rates moved lower. Additionally, the lower the credit rating, the better the relative performance, as investors continued to demand higher yielding bonds amid still generationally low municipal bond interest rates. Below investment grade securities (i.e., junk bonds), as measured by the Bloomberg Barclays Municipal High Yield Index, generated the best relative performance among credit quality tiers of the municipal bond market for the six months ended April 30, 2019, producing a total return of 6.05%. The resumption in compression of credit risk spreads of below investment grade rated bonds, after widening for a short period late in 2018, continues to surprise us. In this regard, it is important to remember that the investment policies of the Fund prohibit the purchase of bonds with ratings below investment grade.

The technical picture for municipal bonds is quite strong, as the market continues to see historically lower levels of supply combined with record setting inflows into tax-exempt mutual funds. According to Lipper US Fund Flows, these inflows are the greatest ever recorded to start a year since the data series began in 1992. In fact, if the current year were to end on April 30, 2019, inflows through the first four months of 2019 would represent one of the top five best years on record. Needless to say, this healthy demand for municipal bonds has helped fuel strong market returns.

Credit fundamentals for the municipal bond market will likely remain challenged by high fixed cost burdens, including higher debt loads and underfunded pension liabilities. However, the strong job market and the long period of economic expansion across the country have helped moderate some of the fiscal strain posed by pension burdens. While there have been several highly publicized events of struggling municipal credits over the past decade, we still believe that municipal bonds

remain one of the lowest risk asset classes, with credit metrics for the majority of municipalities continuing to improve as the national economy expands. This improvement is mostly due to a healthier tax base and better financial management, which has translated into higher revenues and replenished reserves. Nevertheless, even though credit fundamentals have mostly improved, thorough credit analysis is imperative in this market, as issuers are not all created equal—even when they have similar credit ratings.

In March, the FOMC suggested a less restrictive monetary policy for the remainder of the year, which sparked a rally in the U.S. Treasury market and, in turn, the municipal bond market. While municipal yields are expected to mostly track changes in U.S. Treasury yields, the municipal market’s strong technical condition should remain supportive of municipals in the coming months, especially as the FOMC’s comments lessened investor concern about a continual upward movement on yields and lowering of bond prices. We expect the future technical picture for municipals to be supportive for relative valuations of municipal bonds, as we believe that expectations of lower supply will continue to be met with renewed interest in tax-advantaged investments like municipal bonds. While valuations are approaching the higher boundary of levels experienced in recent years, when considering their taxable-equivalent yields compared to other fixed income investments, we believe that current pricing for municipal bonds remains reasonable. Lastly, although overall market fundamentals have improved, we continue to believe that now is not the time to take on additional credit risk in the municipal market, especially with credit spreads once again approaching historically tight levels.

In managing the DTF Fund, we continue to emphasize an investment strategy of investing mostly in higher quality investment grade rated “AA” and “A” callable revenue bonds with coupons of 5% or higher. As of April 30, 2019, the Fund held over 90% of its total assets in municipal bonds rated “A” or higher and over 86% in bonds with a 5% or greater coupon across multiple sectors and states. However, as interest rates have declined, we have selectively purchased bonds with lower coupons in an effort to add incremental yield to the Fund without adding additional credit risk. The Fund held exposure to over ten industry sectors of the municipal bond market with healthcare, education, water & sewer, special tax, and pre-refunded bonds representing the Fund’s top five exposures. The Fund continues to favor revenue bonds compared to general obligation bonds (approximately 86% revenue vs. 14% general obligation), as we prefer the predictable revenue streams, more settled legal structure and better post-default recovery rates that have historically been afforded to revenue bonds. The Fund remains well diversified geographically, with exposure to 32 states and the District of Columbia. The Fund remains diversified across the maturity spectrum in order to help moderate the portfolio’s risk from potential changes in interest rates and potential changes to the shape of the yield curve that could result from future actions of the FOMC or changing investor sentiment. We continue to believe that higher quality municipal bonds offer reasonably good relative value and that investors are being compensated significantly less in risk spreads for owning the lowest-rated bonds. The strong demand for lower-rated issues has decreased the yield advantage of taking on the additional credit risk.

As of April 30, 2019, the DTF Fund was paying a $0.42 per share annualized dividend and had a closing price of $13.63 per share. An extended environment of historically low municipal interest rates combined with more recent increases in leverage costs have added a significant element of risk to leveraged municipal bond funds, including the Fund. When bonds held in a portfolio mature or are called for redemption during a period of low interest rates, the proceeds generally need to be reinvested in lower yielding securities. Due to the Fund’s investment policies, which allow it to purchase only investment grade bonds, a prolonged period of relatively low interest rates and modest reinvestment opportunities, combined with rising leverage costs, has reduced the availability of earnings to the Fund. In addition, a steady increase in the cost of leverage relative to investment yields has further reduced the availability of earnings. If the cost of leverage continues to rise without a similar or greater rise in the available re-investment rate for bonds called and/or maturing, the Fund’s earnings will likely be reduced. The Fund’s common monthly dividend was reduced to $0.035 per share in September 2018. The dividend cut was intended to better align the DTF Fund’s monthly distribution with its current and projected earnings and is subject to re-evaluation as the interest rate and credit environment changes. If the Fund’s net earnings were to fall short of its dividend payout, the Fund’s balance of undistributed net income will decline further, possibly necessitating further dividend reductions.

Maturity and duration are measures of the sensitivity of a fund’s portfolio of investments to changes in interest rates. More specifically, duration refers to the percentage change in a bond’s price for a given change in rates (typically +/- 100 basis

points). In general, the greater the duration of a portfolio, the greater is the potential percentage price volatility for a given change in interest rates. As of April 30, 2019, the Fund’s portfolio of investments duration was 5.9 years, compared to the Bloomberg Barclays Municipal Bond Index duration of 5.6 years.

In addition to the risk of disruptions in the broader credit market, the level of interest rates can be a primary driver of bond fund total returns, including the Fund’s returns. An extended environment of historically low interest rates adds an element of reinvestment risk, since the proceeds of maturing bonds may need to be reinvested in lower-yielding securities. As a practical matter, it is not possible for the Fund to be completely insulated from turmoil in the global financial markets or unexpected moves in interest rates. Any sudden or unexpected rise in interest rates would likely reduce the total return of bond funds, since higher interest rates could be expected to depress the valuations of fixed-rate bonds held in a portfolio. Further, if the municipal yield curve continues to flatten (when the difference between short-term interest rates and long-term rates narrows) or even invert (when short-term rates exceed long-term rates), the Fund’s total return may be pressured lower. Management believes that over the long term, the diversification of the portfolio across multiple states and sectors, in addition to the distribution of assets along the yield curve, positions the Fund to take advantage of future opportunities while limiting credit risk and volatility to some degree. However, a sustained and meaningful rise in interest rates from current levels would have the potential to significantly reduce the total return of leveraged bond funds, including the Fund, and would likely put downward pressure on both the net asset value and market prices of such funds.

The following table compares the DTF Fund’s total return and the Bloomberg Barclays Municipal Bond Index:

At the regular March 2019 meeting of the DTF Fund’s Board of Directors (the “Board”), the Board declared the following monthly dividends:

At the regular June 2019 meeting of the DTF Fund’s Board of Directors (the “Board”), the Board declared the following monthly dividends:

The Fund’s investment objective is current income exempt from regular federal income tax consistent with the preservation of capital. The fund seeks to achieve its investment objective by investing primarily (at least 80% of its total assets) in a diversified portfolio of investment-grade tax-exempt obligations. The Fund may not invest more than 25% of its total assets (taken at market value at the time of each investment) in the securities of issuers in a single industry; provided that, for purposes of this restriction, tax exempt securities of issuers that are states, municipalities or their political subdivisions are not considered to be the securities of issuers in any single industry.

The use of leverage enables the Fund to borrow at short-term rates and invest at longer-term rates. As of April 30, 2019, the Fund’s leverage consisted of $65 million of Variable Rate MuniFund Term Preferred Shares (VMTP). On that date, the total amount of leverage represented approximately 35% of the Fund’s total assets. The amount and type of leverage used is reviewed by the Board of Directors based on the Fund’s expected earnings relative to the anticipated costs (including fees and expenses) associated with the leverage. In addition, the long-term expected benefits of leverage are weighed against the potential effect of increasing the volatility of both the Fund’s net asset value and the market value of its common stock. Historically, the tendency of the U.S. yield curve to exhibit a positive slope (i.e., long-term rates higher than short-term rates) has fostered an environment in which leverage can make a positive contribution to the earnings of the Fund. There is no assurance that this will continue to be the case in the future. A decline in the difference between short-term and long-term rates could have an adverse effect on the income provided from leverage. Prolonged periods of low longer-term interest rates can result in modest reinvestment opportunities for the Fund’s portfolio and could also adversely affect the income provided from leverage. If the DTF Fund were to conclude that the use of leverage was likely to cease being beneficial, it could modify the amount and type of leverage it uses or eliminate the use of leverage entirely.

We continue to appreciate your interest in the DTF Fund and look forward to being of continued service in the future.

Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein, are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The DTF Fund disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein.


Principal Amount (000)		Description (a)	Value
	LONG-TERM INVESTMENTS—147.8%
		Alabama—1.8%
	$2,000	Jefferson Cnty. Brd. of Ed. Pub. Sch. Warrants, 5.00%, 2/01/46		$2,294,040


		Alaska—0.3%
	290	Anchorage Elec. Util. Rev., 5.00%, 12/01/36		326,357


		Arizona—3.9%
	1,350	Arizona St. Univ. Rev., 5.00%, 7/01/37		1,574,856
	650	Arizona St. Hlth. Fac. Auth. Rev., Scottsdale Lincoln Hosp. Proj., 5.00%, 12/01/42		715,377
	1,000	Maricopa Cnty. Indl. Dev. Auth. Rev., 4.00%, 1/01/34		1,076,740
	500	Northern Arizona Univ. Rev., 5.00%, 6/01/40		558,685
	1,000	Northern Arizona Univ. SPEED Rev., (Stimulus Plan for Econ. and Edl. Dev.), 5.00%, 8/01/38		1,098,870

				5,024,528

		California—17.6%
	1,150	California St. Hlth. Facs. Fin. Auth. Rev., Kaiser Permanente, 4.00%, 11/01/44		1,229,465
	275	California St. Hlth. Facs. Fin. Auth. Rev., Providence St. Joseph Hlth., 4.00%, 10/01/36		296,279
	1,500	California St. Hlth. Facs. Fin. Auth. Rev., Sutter Hlth., 5.00%, 11/15/46		1,695,180
	100	California St. Muni. Fin. Auth. Student Hsg. Rev., Bowles Hall Foundation, 5.00%, 6/01/35		110,279
	1,000	California St. Gen. Oblig., 5.00% 10/01/28		1,163,640
	1,000	California St. Pub. Wks. Brd. Lease Rev., Dept. of Corrections and Rehab., 5.25%, 9/01/29		1,135,270


Principal Amount (000)		Description (a)	Value
$	750	California Statewide Communities Dev. Auth. Rev., Marin General Hosp., 4.00%, 8/01/45	$	768,637
	600	Contra Costa Cnty. Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/35, BAM		717,978
	1,000	Garden Grove Successor Agy. to Agy. Cmty. Dev., Tax Allocation, 5.00%, 10/01/31, BAM		1,191,790
	2,000	Gilroy Unified Sch. Dist. Gen. Oblig., 4.00%, 8/01/41		2,128,920
	280	Lancaster Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/33, AGM		329,011
	1,000	Los Angeles Cnty. Santn. Dists. Fin. Auth. Rev., 5.00%, 10/01/34		1,160,270
	250	Palm Desert Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 10/01/28, BAM		307,828
	2,550	Riverside Cnty. Sngl. Fam. Rev., 7.80%, 5/01/21, Escrowed to maturity (b)		2,846,692
	1,000	San Jose Unified Sch. Dist. Gen. Oblig., 4.00%, 8/01/42		1,071,770
	1,215	San Marcos Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 10/01/32		1,432,351
	2,000	San Mateo Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/30		2,312,680
	1,000	Temple City Unified Sch. Dist. Gen. Oblig., 4.00%, 8/01/43		1,054,710
	1,750	Univ. of California Rev., 4.00%, 5/15/48		1,880,217

				22,832,967

		Colorado—4.5%
	1,120	Colorado St. Hsg. & Fin. Auth. Rev., 3.60%, 11/01/38		1,153,275
	400	Denver Conv. Center & Hotel Auth. Rev., 5.00%, 12/01/27		455,860
	1,000	Eagle River Wtr. & Santn. Dist. Enterprise Wstwtr. Rev., 5.00%, 12/01/42		1,098,500


Principal Amount (000)		Description (a)	Value
$	1,680	Public Auth. for Colorado Energy, Natural Gas Purch. Rev., 6.25%, 11/15/28	$	2,128,140
	1,000	Univ. of Colorado Enterprise Rev., 4.00%, 6/01/43		1,082,450

				5,918,225

		Connecticut—5.6%
	900	Connecticut St. Gen. Oblig., 5.00%, 9/15/35		1,064,844
	335	Connecticut St. Gen. Oblig., 4.00%, 4/15/38		361,562
	700	Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Hartford HlthCare., 5.00%, 7/01/32		737,604
	1,000	Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Hartford HlthCare., 5.00%, 7/01/41		1,047,460
	500	Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Univ. of New Haven, 5.00%, 7/01/43		557,575
	550	Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Yale-New Haven Hosp., 5.00%, 7/01/48		597,069
	500	Connecticut St. Hsg. Auth. Rev., 3.20%, 11/15/33		507,770
	1,000	S. Central Connecticut Reg. Wtr. Auth. Rev., 5.00%, 8/01/41 Prerefunded 8/01/21 @ $100 (b)		1,075,650
	1,200	Univ. of Connecticut Spec. Oblig. Rev., 5.00%, 11/15/43		1,375,056

				7,324,590

		District of Columbia—1.7%
	1,000	District of Columbia Gen. Oblig., 5.00%, 6/01/43		1,186,070
	1,000	District of Columbia Inc. Tax Rev., 5.00%, 12/01/31		1,034,160

				2,220,230

		Florida—22.3%
	755	Brevard Cnty. Sch. Brd. Ref. COP, 5.00%, 7/01/32		890,477
	1,500	Broward Cnty. Port Fac. Rev., 6.00%, 9/01/23		1,521,270


Principal Amount (000)		Description (a)	Value
$	1,000	Central Florida Expwy. Auth. Rev., 4.00%, 7/01/36	$	1,072,490
	1,000	Escambia Cnty. Hlth. Fac. Auth. Rev., Baptist Hosp., 6.00%, 8/15/36		1,047,150
	2,000	Florida St. Brd. of Ed. Cap. Outlay Gen. Oblig., 5.00%, 6/01/41		2,123,340
	2,350	Florida St. Brd. of Gov. Florida State Univ. Dorm Rev., 5.00%, 5/01/33		2,611,696
	1,000	Hillsborough Cnty. Aviation Auth. Rev., Tampa Int’l. Arpt., 5.00%, 10/01/44		1,111,240
	500	Lee Cnty. Tran. Fac. Rev., 5.00%, 10/01/35, AGM		567,555
	1,080	Miami Beach Hlth. Facs. Auth. Hosp. Rev., 5.00%, 11/15/39		1,184,641
	500	Miami Beach Redev. Agy. Rev., 5.00%, 2/01/40, AGM		562,780
	500	Miami-Dade Cnty. Expwy. Auth. Rev., 5.00%, 7/01/33		583,860
	1,225	Miami-Dade Cnty. Ed. Facs. Auth. Rev., 5.00%, 4/01/45		1,354,997
	2,220	Miami-Dade Cnty. Sch. Brd. Ref. COP, 5.00%, 2/01/34		2,528,469
	250	Miami-Dade Cnty. Aviation Rev., 5.00%, 10/01/32		270,357
	2,000	Orlando and Orange Cnty. Expwy. Auth. Rev., 5.00%, 7/01/35		2,223,460
	1,000	Reedy Creek Impvt. Dist. Gen. Oblig., 5.00%, 6/01/38		1,105,240
	2,035	Seminole Cnty. Sales Tax Rev., 5.25%, 10/01/31, NRE		2,613,978
	2,190	Seminole Cnty. Sch. Brd. COP, 5.00%, 7/01/33		2,554,175
	830	S. Florida Wtr. Mgmt. Dist. COP, 5.00%, 10/01/35		958,202
	470	Tallahassee Hlth. Facs. Rev., Tallahassee Memorial Hlthcare., 5.00%, 12/01/41		519,251
	665	Tampa-Hillsborough Cnty. Expwy. Auth. Rev., 4.00%, 7/01/42		708,059


Principal Amount (000)		Description (a)	Value
$	880	Tampa-Hillsborough Cnty. Expwy. Auth. Rev., 5.00%, 7/01/47	$	1,010,064

				29,122,751

		Georgia—1.5%
	500	Atlanta Arpt. Passenger Fac. Charge Gen. Rev., 5.00%, 1/01/32		562,155
	1,425	Metro. Atlanta Rapid Tran. Auth. Rev., 5.00%, 7/01/39 Prerefunded 7/01/19 @ $100 (b)		1,433,051

				1,995,206

		Idaho—0.2%
	240	Idaho St. Hlth. Facs. Auth. Rev., St. Luke’s Hlth. Sys., 5.00%, 3/01/37		275,729


		Illinois—14.3%
	500	Chicago Multi-Family Hsg. Rev., 4.90%, 3/20/44, FHA		501,310
	1,000	Chicago O’Hare Intl. Arpt. Rev., Customer Fac. Charge, 5.125%, 1/01/30, AGM		1,107,660
	620	Chicago O’Hare Intl. Arpt. Rev., 5.25%, 1/01/42		722,635
	250	Chicago Sales Tax Rev., 5.00%, 1/01/30 Prerefunded 1/01/25 @ $100 (b)		293,330
	250	Chicago Wtrwks. Rev., 5.00%, 11/01/30		285,327
	650	Chicago Wtrwks. Rev., 5.25%, 11/01/32, AGM		763,503
	250	Chicago Wtrwks. Rev., 5.00%, 11/01/36, AGM		285,057
	865	Chicago Wtrwks. Rev., 5.00%, 11/01/44		944,286
	1,225	Illinois St. Fin. Auth. Rev., Advocate Hlthcare. Network, 5.00%, 5/01/45		1,361,514
	525	Illinois St. Fin. Auth. Rev., Centegra Hlth. Sys., 5.00%, 9/01/42		580,424


Principal Amount (000)		Description (a)	Value
$	520	Illinois St. Fin. Auth. Rev., Northwestern Memorial Hlthcare., 5.00%, 8/15/37	$	563,404
	1,070	Illinois St. Fin. Auth. Rev., Rush Univ. Med. Ctr., 4.00%, 11/15/39		1,099,896
	1,000	Illinois St. Fin. Auth. Rev., Rush Univ. Med. Ctr., 5.00%, 11/15/39		1,099,240
	1,025	Illinois St. Fin. Auth. Rev., Swedish Covenant Hosp., 6.00%, 8/15/38, Prerefunded 2/15/20 @ $100 (b)		1,059,819
	1,000	Illinois St. Gen. Oblig., 5.00%, 2/01/27		1,100,220
	2,000	Illinois St. Gen. Oblig., 5.50%, 1/01/29		2,296,160
	750	Illinois St. Toll Hwy. Auth. Rev., 5.00%, 1/01/41		851,647
	330	Railsplitter Tobacco Settlement Auth. Rev., 5.00%, 6/01/27		387,889
	1,000	Railsplitter Tobacco Settlement Auth. Rev., 6.00%, 6/01/28 Prerefunded 6/01/21 @ $100 (b)		1,088,380
	1,000	Sales Tax Securitization Corp. Rev., 5.00%, 1/01/48		1,099,450
	1,000	Univ. of Illinois Aux. Facs. Sys. Rev., 5.00%, 4/01/34		1,099,890

				18,591,041

		Indiana—2.8%
	240	Indiana St. Fin. Auth. Hosp. Rev., Indiana Univ. Hlth., 5.00%, 12/01/28		276,643
	2,000	Indiana St. Fin. Auth. Hosp. Rev., Parkview Hlth., 5.00%, 11/01/43		2,304,980
	1,000	Indiana St. Fin. Auth. Rev. State Revolving Fund, 5.00%, 2/01/31 Prerefunded 2/01/21 @ $100 (b)		1,059,040

				3,640,663


Principal Amount (000)		Description (a)	Value
		Kentucky—0.8%
$	900	Kentucky Bond Dev. Corp. Transient Room Tax Rev., 5.00%, 9/01/43	$	1,041,552


		Louisiana—5%
	1,250	Louisiana St. Stadium & Exposition Dist. Rev., 5.00%, 7/01/30		1,388,425
	605	Louisiana St. Stadium & Exposition Dist. Rev., 5.00%, 7/01/36		667,146
	1,250	Louisiana St. Tran. Auth. Rev., 5.00%, 8/15/38		1,397,762
	300	New Orleans Swr. Svc. Rev., 5.00%, 6/01/44		322,557
	500	Port of New Orleans Brd. of Commissioners Port Fac. Rev., 5.00%, 4/01/33		540,250
	1,100	Regional Tran. Auth. Sales Tax Rev., 5.00%, 12/01/30, AGM		1,152,239
	1,000	Terrebonne Parish Consol. Wtrwks. Dist. No. 1 Rev., 5.00%, 11/01/37		1,099,690

				6,568,069

		Maine—1.8%
	95	Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., 5.00%, 7/01/33, Prerefunded 7/1/23 @ $100 (b)		107,426
	905	Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., 5.00%, 7/01/33		985,427
	610	Portland General Arpt. Rev., 5.00%, 7/01/31		664,595
	540	Portland General Arpt. Rev., 5.00%, 7/01/32		586,791

				2,344,239

		Maryland—1.1%
	250	Baltimore Convention Center Hotel Rev., 5.00%, 9/01/36		280,965
	1,000	Maryland St. Hlth. & Hgr. Edl. Facs. Auth. Rev., Anne Arundel Hlth. Sys., 5.00%, 7/01/39		1,105,770

				1,386,735


Principal Amount (000)		Description (a)	Value
		Massachusetts—7.5%
$	3,000	Massachusetts St. Bay Trans. Auth. Rev., 5.50%, 7/01/29, NRE	$	3,974,550
	1,000	Massachusetts St. Gen. Oblig., 5.25%, 9/01/25, AGM		1,212,200
	1,000	Massachusetts St. Gen. Oblig., 5.50%, 8/01/30, AMBAC		1,318,250
	2,000	Massachusetts St. College Bldg. Auth. Rev., 5.00%, 5/01/40 Prerefunded 5/1/20 @ $100 (b)		2,068,020
	1,000	Massachusetts St. Port Auth. Rev., 5.00%, 7/01/47		1,150,930

				9,723,950

		Michigan—1.9%
	1,000	Holland Elec. Util. Sys. Rev., 5.00%, 7/01/39		1,063,630
	550	Michigan St. Fin. Auth. Rev., Beaumont Hlth. Credit Group, 5.00%, 11/01/44		611,908
	540	Michigan St. Bldg. Auth. Rev., 4.00%, 10/15/36		578,156
	225	Royal Oak Hosp. Fin. Auth. Rev., William Beaumont Hosp., 5.00%, 9/01/39		247,784

				2,501,478

		Nebraska—2.2%
	500	Nebraska St. Pub. Pwr. Dist. Gen. Rev., 5.00%, 1/01/34		537,810
	1,900	Omaha Gen. Oblig., 5.25%, 4/01/27		2,370,174

				2,907,984

		New Jersey—2%
	400	Camden Cnty. Impvt. Auth. Hlthcare. Redev. Rev., Cooper Hlth. Sys., 5.00%, 2/15/33		437,684
	240	New Jersey St. Tpk. Auth. Rev., 4.00%, 1/01/35		261,288
	1,750	Tobacco Settlement Financing Corp. Rev., 5.25%, 6/01/46		1,957,533

				2,656,505


Principal Amount (000)		Description (a)	Value
		New York—8.9%
$	1,000	Albany Indl. Dev. Agy. Rev., Brighter Choice Charter Sch., 5.00%, 4/01/32	$	992,450
	300	Buffalo and Erie Cnty. Indl. Land. Dev. Rev., Catholic Hlth. Sys., 5.25%, 7/01/35		345,222
	700	Long Island Pwr. Auth. Elec. Sys. Gen. Rev., 5.00%, 9/01/42		756,707
	530	Long Island Pwr. Auth. Elec. Sys. Gen. Rev., 5.00%, 9/01/42		616,470
	600	New York Cntys. Tobacco Trust VI Rev., 5.00%, 6/01/45		628,740
	100	New York City Transitional Fin. Auth. Rev., Adjustable Rate Bond, 2.30%, 2/01/45		100,000
	400	New York City Transitional Fin. Auth. Rev., Adjustable Rate Bond, 2.30%, 8/01/45		400,000
	1,000	New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., 5.00%, 6/15/34		1,112,740
	1,000	New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., 5.375%, 6/15/43		1,055,550
	1,000	New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., 5.50%, 6/15/43		1,059,190
	2,000	New York St. Dorm. Auth., Personal Inc. Tax Rev., 5.00%, 03/15/31		2,322,000
	900	Port Auth. of New York and New Jersey Rev., 5.00%, 6/01/33		1,020,123
	500	Triborough Bridge & Tunnel Auth. Rev., 5.00%, 11/15/30		559,040
	195	TSASC Inc. Tobacco Settlement Rev., 5.00%, 6/01/34		220,407
	400	Utility Debt Securitization Auth. Restructuring Rev., 5.00%, 12/15/31		454,576

				11,643,215


Principal Amount (000)		Description (a)	Value
		Ohio—5.7%
$	690	Deerfield Twp. Tax Increment Rev., 5.00%, 12/01/25	$	691,932
	555	Northeast Ohio Regl. Swr. Dist. Rev., 4.00%, 11/15/43		598,562
	500	Ohio St. Gen. Oblig., 5.00%, 9/01/30 Prerefunded 9/01/20 @ $100 (b)		522,550
	2,000	Ohio St. Hosp. Rev., Univ. Hosp. Hlth. Sys., 4.00%, 1/15/44		2,063,420
	1,040	Ohio St. Tpk. Comm. Rev., 5.00%, 2/15/31 Prerefunded 2/15/20 @ $100 (b)		1,067,238
	2,445	Ohio St. Wtr. Dev. Auth. Rev., 5.50%, 6/01/20, AGM		2,547,250

				7,490,952

		Oregon—1.8%
	500	Oregon St. Gen. Oblig., 5.00%, 5/01/41		579,155
	570	Port of Portland Intl. Arpt. Rev., 5.00%, 7/01/32		636,394
	1,000	Washington Cnty. Sch. Dist. 48J (Beaverton), Gen. Oblig. Convertible CAB, 5.00%, 6/15/36		1,190,700

				2,406,249

		Pennsylvania—4.5%
	2,000	Delaware River Port Auth. Rev., 5.00%, 1/01/34		2,250,020
	500	Pennsylvania St. Higher Ed. Facs. Auth. Rev., 5.00%, 6/15/28		516,890
	1,020	Pennsylvania St. Tpk. Commision, Oil Franchise Tax Rev., 5.00%, 12/01/23, AGC, Prerefunded 12/01/19 @ $100 (b)		1,040,125
	2,000	Philadelphia Wtr. & Wstwtr. Rev., 5.00%, 1/01/41		2,083,540

				5,890,575

		Rhode Island—2.2%
	1,070	Rhode Island St. Clean Wtr. Fin. Agy., Wtr. Poll. Control Rev. (Green Bonds), 5.00%, 10/01/32		1,232,576


Principal Amount (000)		Description (a)	Value
$	1,600	Rhode Island St. Hlth. & Edl. Bldg. Corp., Higher Ed. Facs. Rev., Providence College, 5.00%, 11/01/41	$	1,699,936

				2,932,512

		South Carolina—2%
	2,000	Charleston Cnty. Spl. Source Rev., 5.00%, 12/01/32		2,262,360
	290	SCAGO Edl. Facs. Corp. Rev., Pickens Cnty. Sch. Dist., 5.00%, 12/01/24		337,598

				2,599,958

		Tennessee—5.5%
	250	Chattanooga-Hamilton Cnty. Hosp. Auth. Rev., Erlanger Hlth. Sys., 5.00%, 10/01/34		275,098
	1,620	Tennessee St. Energy Acquisition Corp. Rev., 5.25%, 9/01/20		1,679,875
	1,000	Tennessee St. Energy Acquisition Corp. Rev., 5.25%, 9/01/21		1,063,810
	695	Tennessee St. Hsg. Dev. Agy., 3.625%, 7/01/32		730,542
	495	Tennessee St. Hsg. Dev. Agy., 3.90%, 7/01/42		510,018
	495	Tennessee St. Hsg. Dev. Agy., 4.00%, 7/01/43		516,033
	2,000	Tennessee St. Sch. Bond Auth. Rev., 5.00%, 11/01/42		2,373,480

				7,148,856

		Texas—8.8%
	850	Austin Indep. Sch. Dist. Gen. Oblig., 4.00%, 8/01/36, PSF		928,889
	650	Dallas Area Rapid Transit Rev., 5.00%, 12/01/41		746,759
	500	Houston Arpt. Sys. Rev., 5.00%, 7/01/32		540,260
	1,250	Houston Arpt. Sys. Rev., 5.00%, 7/01/39		1,484,163
	1,000	Houston Hotel Occupancy Tax & Spl. Rev., 5.25%, 9/01/29		1,073,700


Principal Amount (000)		Description (a)	Value
$	1,410	Houston Util. Sys. Rev., 5.00%, 11/15/32	$	1,588,182
	1,000	North Texas Twy. Auth. Rev., 5.00%, 1/01/31		1,143,480
	1,000	North Texas Twy. Auth. Rev., 4.00%, 1/01/43		1,051,260
	700	San Antonio Indep. Sch. Dist. Sch. Bldg. Gen. Oblig., 5.00%, 8/15/38, PSF		814,828
	1,000	Texas Water Development Brd. Rev., St. Wtr. Implementation Fund, 4.00%, 10/15/47		1,077,780
	1,000	Upper Trinity Reg. Wtr. Dist. Rev., 4.00%, 8/01/37, AGM		1,032,460

				11,481,761

		Vermont—2.1%
	2,000	Univ. of Vermont & St. Agric. College Gen. Oblig., 5.00%, 10/01/38		2,165,600
	500	Vermont St. Edl. and Hlth. Bldg. Fin. Agy. Rev., Univ. of Vermont Med. Center, 5.00%, 12/01/35		577,270

				2,742,870

		Virginia—2.9%
	1,250	Riverside Regl. Jail Auth. Fac. Rev., 5.00%, 7/01/26		1,478,813
	2,000	Virginia St. College Bldg. Auth. Rev., 5.00%, 2/01/23		2,244,040

				3,722,853

		Washington—0.9%
	1,000	King Cnty. Wtr. Rev., 5.00%, 7/01/41		1,156,520


		Wisconsin—3%
	1,400	Wisconsin St. Pub. Fin. Auth. Hosp. Rev., Renown Reg. Med. Ctr., 5.00%, 6/01/40		1,545,516
	250	Wisconsin St. Pub. Fin. Auth., Solid Waste Disp. Rev., 2.875%, 5/01/27		252,353
	190	Wisconsin St. Gen. Rev., 6.00%, 5/01/33, Prerefunded 5/01/19 @ $100 (b)		190,000


Principal Amount (000)		Description (a)	Value
$	1,810	Wisconsin St. Gen. Rev., 6.00%, 5/01/33 Prerefunded 5/01/19 @ $100 (b)	$	1,810,000

				3,797,869

		Wyoming—0.7%
	900	Wyoming St. Farm Loan Brd. Cap. Facs. Rev., 5.75%, 10/01/20		923,733

		Total Long-Term Investments (Cost $183,488,463)		192,634,762


		TOTAL INVESTMENTS—147.8%
		(Cost $183,488,463)		192,634,762
		Variable Rate MuniFund Term Preferred Shares at liquidation value—(49.9)%		(65,000,000	)
		Other assets less other liabilities—2.1%		2,720,339

		NET ASSETS APPLICABLE TO COMMON STOCK—100.0%		$130,355,101

(a)	The following abbreviations are used in the portfolio descriptions:

AGC—Assured Guaranty Corp.*

AGM—Assured Guaranty Municipal Corp.*

AMBAC—Ambac Assurance Corporation*

BAM—Build America Mutual Assurance Company*

CAB—Capital Appreciation Bond

COP—Certificate of Participation

FHA—Federal Housing Authority*

NRE—National Public Finance Guarantee Corporation*

PSF—Texas Permanent School Fund*

*	Indicates an obligation of credit support, in whole or in part.

(b)	Prerefunded and escrowed to maturity issues are secured by escrowed cash, U.S. government obligations, or other securities.

The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common stock of the Fund.

The Fund’s investments are carried at fair value which is defined as the price that the Fund would receive upon selling an

investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.

Level 1—

quoted prices in active markets for identical securities.

Level 2—

other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

Level 3—

significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Fund’s investments at April 30, 2019:


	Level 2
Municipal bonds		$192,634,762

There were no Level 1 or Level 3 priced securities held and there were no transfers into or out of Level 3.

Summary of Ratings

as a Percentage of Long-Term Investments


Rating *	%
AAA		6.2
AA		48.8
A		35.1
BBB		8.0
BB		0.0
B		0.5
NR		1.4

		100.0

Individual ratings are grouped based on the lower rating of Standard & Poor’s Financial Services LLC (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”) and are expressed using the S&P ratings scale. If a particular security is rated by either S&P or Moody’s, but not both, then the single rating is used. If a particular security is not rated by either S&P or Moody’s, then a rating from Fitch Ratings, Inc. is used, if available. The Fund does not evaluate these ratings but simply assigns them to the appropriate credit quality category as determined by the ratings agencies, as applicable. Securities that have not been rated by S&P, Moody’s or Fitch totaled 1.4% of the portfolio at the end of the reporting period.

Portfolio Composition

as a Percentage of Total Investments


	%
Healthcare		14.1
General Obligation		12.0
Education		11.7
Water & Sewer		10.6
Special Tax		10.3
Pre-Refunded		8.2
Transportation		8.0
Leasing		4.7
Airports		4.6
Electric & Gas		4.5
Other		11.3

		100.0

The table below provides information about income and capital changes for a share of common stock outstanding throughout the periods indicated (excluding supplemental data provided below):

DTF Tax-Free Income Inc. (the “Fund”) was incorporated under the laws of the State of Maryland on September 24, 1991. The Fund commenced operations on November 29, 1991 as a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s investment objective is current income exempt from regular federal income tax consistent with preservation of capital.

A. Investment Valuation: Debt securities are generally valued based on the evaluated bid using prices provided by one or more dealers regularly making a market in that security, an independent pricing service, or quotes from broker-dealers, when such prices are believed to reflect the fair value of such securities and are generally classified as Level 2. The relative liquidity of some securities in the Fund’s portfolio may adversely affect the ability of the Fund to accurately value such securities. Any securities for which it is determined that market prices are unavailable or inappropriate are valued at fair value using a procedure determined in good faith by the Board of Directors and are classified as Level 2 or 3 based on the valuation inputs.

B. Investment Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains and losses on sales of securities are determined on the identified cost basis. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts on securities using the effective interest method.

C. Federal Income Taxes: It is the Fund’s intention to comply with requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income and capital gains to its shareholders. Therefore, no provision for federal income or excise taxes is required. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Fund’s tax returns filed for the tax years 2015 to 2018 are subject to such review.

D. Dividends and Distributions: The Fund declares and pays dividends on its common stock monthly from net investment income. Net capital gains, if any, in excess of capital loss carryforwards are expected to be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends on the Fund’s Variable Rate MuniFund Term Preferred Shares (“VMTP Shares”) are accrued on a daily basis and paid on a monthly basis and are determined as described in Note 6.

The amount and timing of distributions are generally determined in accordance with federal tax regulations, which may differ from U.S. generally accepted accounting principles.

E. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

F. Accounting Standards: In 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, which shortens the premium amortization period for callable debt. For public companies, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018. At this time, management is evaluating the implications of ASU No. 2017-08 and its impact on the financial statements and accompanying notes.

A. Adviser: The Fund has an Advisory Agreement with Duff & Phelps Investment Management Co. (the “Adviser”), an indirect, wholly owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”). The investment advisory fee is payable monthly at an annual rate of 0.50% of the Fund’s average weekly managed assets, which is defined as the average weekly value of the total assets of the Fund minus the sum of all accrued liabilities of the Fund (other than the aggregate amount of any outstanding borrowings or other indebtedness constituting financial leverage).

B. Administrator: The Fund has an Administration Agreement with J.J.B. Hilliard, W.L. Lyons, LLC (“Hilliard”). The administration fee is payable quarterly at an annual rate of 0.14% of the Fund’s average weekly net assets, which is defined as the average weekly value of the total assets of the Fund minus the sum of all accrued liabilities of the Fund (including the aggregate amount of any outstanding borrowings or other indebtedness constituting financial leverage).

C. Directors: The Fund pays each director not affiliated with the Adviser an annual fee. Total fees paid to directors for the six months ended April 30, 2019 were $44,919.

D. Affiliated Shareholder: At April 30, 2019, Virtus Partners, Inc. (a wholly owned subsidiary of Virtus) held 34,265 shares of the Fund which represent 0.40% of shares of common stock outstanding. These shares may be sold at any time.

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2019 were $5,934,856 and $6,214,720, respectively.

At October 31, 2018, the federal tax cost and aggregate gross unrealized appreciation (depreciation) were as follows:

The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to the tax treatment of discount accretion on fixed income securities.

The tax character of distributions paid to common shareholders during the year ended October 31, 2018 was as follows:

The tax character of distributions paid in 2019 will be determined at the Fund’s fiscal year end, October 31, 2019.

The Fund has issued and outstanding 650 shares of Series 2021 Variable Rate MuniFund Term Preferred Shares (VMTP Shares) each with a liquidation preference of $100,000. The VMTP Shares are a floating-rate form of preferred shares with a mandatory redemption date. The Fund is required to redeem all outstanding VMTP Shares on January 31, 2021, unless earlier redeemed, repurchased or extended. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends and a redemption premium, if any.

The Fund incurred costs in connection with the issuance of the VMTP Shares. These costs were recorded as a deferred charge and are being amortized over the five year life of the VMTP Shares. Amortization of these deferred offering costs of $15,886 is included under the caption “Interest expense and amortization of deferred offering costs on preferred shares” on the Statement of Operations and the unamortized balance is deducted from the carrying amount of the VMTP shares under the caption “Variable Rate MuniFund Term Preferred Shares” on the Statement of Assets and Liabilities.

Dividends on the VMTP Shares (which are treated as interest expense for financial reporting purposes) are accrued daily and paid monthly. The average daily liquidation value outstanding and the weighted daily average dividend rate of the VMTP Shares during the six months ended April 30, 2019, were $65,000,000 and 3.03%, respectively.

The VMTP Shares are not listed on any exchange or automated quotation system. The fair value of the VMTP Shares is estimated to be their liquidation preference. The VMTP Shares are categorized as Level 2 within the fair value hierarchy. The Fund is subject to certain restrictions relating to the VMTP Shares, such as maintaining certain asset coverage, effective leverage ratio and overcollateralization ratio requirements. Failure to comply with these restrictions could preclude the Fund from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of the VMTP Shares at liquidation value.

Under the Fund’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. 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 occurred. However, the Fund has not had prior claims or losses pursuant to these arrangements and expects the risk of loss to be remote.

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in these financial statements.

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the terms of the Fund’s investment advisory agreement must be reviewed and approved at least annually by the Board of Directors of the Fund (the “Board”), including a majority of the directors who are not “interested persons” of the Fund, as defined in section 2(a)(19) of the 1940 Act (the “Independent Directors”). Section 15(c) of the 1940 Act also requires the Fund’s directors to request and evaluate, and the Fund’s investment adviser to furnish, such information as may reasonably be necessary to evaluate the terms of the investment advisory agreement. To assist the Board with this responsibility, the Board has appointed a Contracts Committee, which is composed of the Independent Directors of the Fund and acts under a written charter that was most recently amended on December 17, 2015. A copy of the charter is available on the Fund’s website at www.dpimc.com/dtf and in print to any shareholder, upon request.

The Contracts Committee, assisted by the advice of independent legal counsel, conducted an annual review of the terms of the Fund’s contractual arrangements, including the investment advisory agreement with Duff & Phelps Investment Management Co. (the “Adviser”). Set forth below is a description of the Contracts Committee’s annual review of the Fund’s investment advisory agreement, which provided the material basis for the Board’s decision to continue the investment advisory agreement.

In the course of the Contracts Committee’s review, the members of the Contracts Committee considered all of the information they deemed appropriate, including informational materials furnished by the Adviser in response to a request made by independent counsel on behalf of the Contracts Committee. In arriving at its recommendation that continuation of the investment advisory agreement was in the best interests of the Fund and its shareholders, the Contracts Committee took into account all factors that it deemed relevant, without identifying any single factor or group of factors as all-important or controlling. Among the factors considered by the Contracts Committee, and the conclusion reached with respect to each, were the following:

Nature, extent, and quality of services. The Contracts Committee considered the nature, extent and quality of the services provided to the Fund by the Adviser. Among other materials, the Adviser furnished the Contracts Committee with a copy of its most recent investment adviser registration form (Form ADV). In evaluating the quality of the Adviser’s services, the Contracts Committee noted the various complexities involved in the operations of the Fund, such as the use of leverage in the form of the Fund’s preferred stock, and concluded that the Adviser is consistently providing high-quality services to the Fund in an increasingly complex environment. The Contracts Committee also considered the length of service of the individual professional employees of the Adviser who provide services to the Fund and noted an almost total lack of turnover. In the Contracts Committee’s view, the long-term service of capable and conscientious professionals provides a significant benefit to the Fund and its shareholders. The Contracts Committee also considered the Fund’s investment performance as discussed below. The Contracts Committee also took into account its evaluation of the quality of the Adviser’s code of ethics and compliance program. In light of the foregoing, the Contracts Committee concluded that it was generally satisfied with the nature, extent and quality of the services provided to the Fund by the Adviser.

Investment performance of the Fund and the Adviser. The Contracts Committee reviewed the Fund’s investment performance over time and compared that performance to other funds in its peer group. In making its comparisons, the Contracts Committee utilized data provided by the Adviser and a report from Broadridge (“Broadridge”), an independent provider of investment company data. As reported by Broadridge, the Fund’s net asset value (“NAV”) total return ranked below the median among all leveraged closed-end general and insured municipal debt funds for the 1-, 3- and 5-year periods ended June 30, 2018. The Adviser provided the Contracts Committee with performance information for the Fund for various periods, measured against two benchmarks: the Bloomberg Barclays Municipal Bond Index and the Lipper Leveraged Municipal Debt Funds Average (the Fund’s category as determined by Thomson Reuters Lipper). The Committee noted that the Fund’s NAV total return had outperformed the Bloomberg Barclays Municipal Bond Index for the 3- and 5-year periods ended June 30, 2018, while noting that it had underperformed the index for the most recent 1-year period. The Committee further noted that the Fund’s NAV total return had underperformed compared to the Lipper Leveraged Municipal Debt Fund Average for the 1-, 3-, and 5-year periods ended June 30, 2018. The Contracts Committee further noted that on a market value total return basis, the Fund had underperformed the Bloomberg Barclays

Municipal Bond Index over the 1- and 5-year periods ended June 30, 2018, while noting that it had outperformed the index for the 3-year period ended June 30, 2018. The Contracts Committee also noted that on a market value total return basis, the Fund had underperformed the Lipper Leveraged Municipal Debt Fund Average over the 1-, 3- and 5-year periods ended June 30, 2018. In evaluating the Fund’s performance, the Contracts Committee further considered the Adviser’s explanation that the fixed-income investments comprising certain of the benchmarks include higher yielding, lower-quality bonds in which the Fund is not permitted to invest.

Costs of services and profits realized. The Contracts Committee considered the reasonableness of the compensation paid to the Adviser, in both absolute and comparative terms, and also the profits realized by the Adviser and its affiliates from its relationship with the Fund. To facilitate this analysis, the Contracts Committee retained Broadridge to furnish a report comparing the Fund’s management fee (defined as the sum of the advisory fee and administration fee) and other expenses to the similar expenses of other municipal debt funds selected by Broadridge (the “Broadridge expense group”). The Contracts Committee reviewed, among other things, information provided by Broadridge comparing the Fund’s contractual management fee rate (at common asset levels) and actual management fee rate (reflecting fee waivers, if any) as a percentage of total assets and as a percentage of assets attributable to common stock to other funds in its Broadridge expense group. Based on the data provided on management fee rates, the Contracts Committee noted that: (i) the Fund’s contractual management fee rate at a common asset level was above the median of its Broadridge expense group; (ii) the actual total expense rate was higher than the median of its Broadridge expense group on the basis of assets attributable to common stock and on a total asset basis; and (iii) the actual management fee rate was higher than the median of its Broadridge expense group on the basis of assets attributable to common stock and on a total asset basis.

In reviewing expense ratio comparisons between the Fund and other funds in the peer group selected by Broadridge, the Contracts Committee considered leverage-related expenses separately from other expenses. The Contracts Committee noted that leverage-related expenses are not conducive to direct comparisons between funds, because the leverage-related expenses on a fund’s income statement are significantly affected by the amount, type, tenor and accounting treatment of the leverage used by each fund. The Contracts Committee concluded that those factors, because of their varying impact on the cost of each fund’s leverage, were the primary driver of the difference between the Fund’s investment-related expenses and those of other funds in the Broadridge peer group. Also, unlike all the other expenses of the Fund (and other funds) which are incurred in return for a service, leverage expenses are incurred in return for the receipt of additional capital that is then invested by the Fund (and other funds using leverage) in additional portfolio securities that produce revenue directly offsetting the leverage expenses. Accordingly, in evaluating the cost of the Fund’s leverage, the Contracts Committee considered the specific benefits to the Fund’s common shareholders of maintaining such leverage, noting that the Fund’s management and the Board regularly monitor the amount, form, terms and risks of the Fund’s leverage, and that such leverage has continued to be accretive, generating net income for the Fund’s common shareholders over and above its cost.

The Adviser also furnished the Contracts Committee with copies of its financial statements, and the financial statements of its parent company, Virtus Investment Partners, Inc. The Adviser also provided information regarding the revenue and expenses related to its management of the Fund, and the methodology used by the Adviser in allocating such revenue and expenses among its various clients. In reviewing those financial statements and other materials, the Contracts Committee examined the profitability of the investment advisory agreement to the Adviser and determined that the profitability of that contract was reasonable in light of the services rendered to the Fund. The Contracts Committee considered that the Adviser must be able to compensate its employees at competitive levels in order to attract and retain high-quality personnel to provide high-quality service to the Fund. The Contracts Committee concluded that the investment advisory fee was the product of arm’s length bargaining and that it was fair and reasonable to the Fund.

Economies of scale. The Contracts Committee considered whether the Fund has appropriately benefited from any economies of scale. The Contracts Committee concluded that currently the Fund is not sufficiently large to realize benefits from economies of scale with fee breakpoints. The Contracts Committee encouraged the Adviser to continue to work towards reducing costs by leveraging relationships with service providers across the complex of funds advised by the Adviser.

Comparison with other advisory contracts. The Contracts Committee also received comparative information from the Adviser with respect to its standard fee schedule for investment advisory clients other than the Fund. The Contracts

Committee noted that, among all accounts managed by the Adviser, the Fund’s advisory fee rate is slightly higher than the Adviser’s standard fee schedule. However, the Contracts Committee noted that the services provided by the Adviser to the Fund are significantly more extensive and demanding than the services provided by the Adviser to its non-investment company, institutional accounts. Specifically, in providing services to the Fund, the Contracts Committee considered that the Adviser needs to: (1) comply with the 1940 Act, the Sarbanes-Oxley Act and other federal securities laws and New York Stock Exchange requirements, (2) provide for external reporting (including quarterly and semi-annual reports to shareholders, annual audited financial statements and disclosure of proxy voting), tax compliance and reporting (which are particularly complex for investment companies), requirements of Section 19 of the 1940 Act relating to the source of distributions, (3) prepare for and attend meetings of the Board and its committees, (4) communicate with Board and committee members between meetings, (5) communicate with a retail shareholder base consisting of thousands of investors, (6) manage the use of financial leverage and respond to changes in the financial markets and regulatory environment that could affect the amount and type of the Fund’s leverage and (7) respond to unanticipated issues in the financial markets or regulatory environment that can impact the Fund. Based on the fact that the Adviser only provides the foregoing services to its investment company clients and not to its institutional account clients, the Contracts Committee concluded that the management fees charged to the Fund are reasonable compared to those charged to other clients of the Adviser, when the nature and scope of the services provided to the Funds are taken into account. Furthermore, the Contracts Committee noted that many of the Adviser’s other clients would not be considered “like accounts” of the Fund because these accounts are not of similar size and do not have the same investment objectives as, or possess other characteristics similar to, the Fund.

Indirect benefits. The Contracts Committee considered possible sources of indirect benefits to the Adviser from its relationship to the Fund. As a fixed-income fund, the Contracts Committee noted that the Fund does not utilize affiliates of the Adviser for brokerage purposes.

Conclusion. Based upon its evaluation of all material factors, including the foregoing, and assisted by the advice of independent legal counsel, the Contracts Committee concluded that the continued retention of the Adviser as investment adviser to the Fund was in the best interests of the Fund and its shareholders. Accordingly, the Contracts Committee recommended to the full Board that the investment advisory agreement with the Adviser be continued for a one-year term ending March 1, 2020. On December 13, 2018, the Contracts Committee presented its recommendations, and the criteria on which they were based, to the full Board, whereupon the Board, including all of the Independent Directors voting separately, accepted the Contracts Committee’s recommendations and unanimously approved the continuation of the current investment advisory agreement with the Adviser for a one-year term ending March 1, 2020.

Although the Fund does not typically hold voting securities, a description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling the Administrator toll-free at (833) 604-3163 or is available on the Fund’s website www.dpimc.com/dtf or on the SEC’s website www.sec.gov.

The Fund filed its complete schedule of portfolio holdings with the SEC for its first fiscal quarter (January 31) on Form N-Q. Beginning with its third fiscal quarter (July 31) and for each subsequent fiscal quarter thereafter, the Fund will file its complete schedule of portfolio holdings as an exhibit to Form N-PORT (NPORT-EX). The Fund’s Form N-Q is available and Form NPORT-EX will be available on the SEC’s website at www.sec.gov. In addition, the Fund’s Forms N-Q and NPORT-EX are available without charge, upon request, by calling the Administrator toll-free at (833) 604-3163 or are available on the Fund’s website at www.dpimc.com/dtf.

Notice is hereby given in accordance with Section 23(c) of the 1940 Act that the Fund may from time to time purchase its shares of common stock in the open market.

The Annual Meeting of Shareholders of the Fund was held on March 11, 2019. The following is a description of the matter voted upon at the meeting and the number of votes cast on the matter:

Board of Directors

David J. Vitale Chairman

Eileen A. Moran Vice Chairperson

Donald C. Burke

Robert J. Genetski

Philip R. McLoughlin

Geraldine M. McNamara

Nathan I. Partain, CFA

Officers

Nathan I. Partain, CFA President and Chief Executive Officer

Daniel J. Petrisko, CFA Senior Vice President and Assistant Secretary

Timothy M. Heaney, CFA Vice President and Chief Investment Officer

Lisa H. Leonard Vice President

William J. Renahan Vice President and Secretary

Dianna P. Wengler Vice President and Assistant Secretary

Alan M. Meder, CFA, CPA Treasurer and Assistant Secretary

Joyce B. Riegel Chief Compliance Officer

DTF Tax-Free Income Inc.

Common stock traded on the New York

Stock Exchange under the symbol DTF

Investment Adviser

Duff & Phelps Investment Management Co.

200 South Wacker Drive, Suite 500

Chicago, lL 60606

Call toll-free (800) 243-4361 ext. 4941

(860) 263-4941

www.dpimc.com/dtf

Administrator

J.J.B. Hilliard, W.L. Lyons, LLC

500 West Jefferson Street

Louisville, KY 40202

Call toll-free (833) 604-3163

Transfer Agent

American Stock Transfer & Trust Company

6201 15th Avenue

Brooklyn, NY 11219

Call toll-free (866) 668-8552

Custodian

State Street Bank and Trust Company

Legal Counsel

Mayer Brown LLP

Independcnt Registered Public Accounting Firm

Ernst & Young LLP

Included as part of the report to stockholders filed under Item 1 of this report.

During the period covered by this report, no purchases were made by or on behalf of the registrant or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934 (the “Exchange Act”)) of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act.

No changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors have been implemented after the registrant last provided disclosure in response to the requirements of Item 22(b)(15) of Schedule 14A (i.e., in the registrant’s Proxy Statement dated January 22, 2019) or this Item.

(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 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Exchange Act.

(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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.

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.


Alan M. Meder		Lawrence R. Hamilton, Esq.
DTF Tax-Free Income Inc.		Mayer Brown LLP
200 South Wacker Drive, Suite 500		71 South Wacker Drive
Chicago, Illinois 60606		Chicago, Illinois 60606


Total Return¹ For the period indicated through April 30, 2019
	6 Months			One Year			Three Years (annualized)			Five Years (annualized)
DTF Tax-Free Income Inc.
Market Value² Net Asset Value³		13.3 7.0	% %		8.9 6.2	% %		-1.5 1.6	% %		3.1 3.5	% %
Bloomberg Barclays Municipal Bond Index⁴		5.7	%		6.2	%		2.6	%		3.6	%


Cents Per Share	Record Date	Payable Date
3.5	April 15	April 30
3.5	May 15	May 31
3.5	June 17	June 28


Cents Per Share	Record Date	Payable Date
3.5	July 15	July 31
3.5	August 15	August 30
3.5	September 16	September 30



ASSETS:

Investments, at value (cost $183,488,463)			$192,634,762

Cash			21,716

Interest receivable			2,747,933

Prepaid expenses			46,364


Total assets			195,450,775


LIABILITIES:

Investment advisory fee (Note 3)			80,016

Administrative fee (Note 3)			14,925

Accrued expenses			57,081

Variable Rate MuniFund Term Preferred Shares (650 shares issued and outstanding, liquidation preference $100,000 per share, net of deferred offering costs of $56,348) (Note 6)			64,943,652


Total liabilities			65,095,674


NET ASSETS APPLICABLE TO COMMON STOCK			$130,355,101


CAPITAL:

Common stock ($0.01 par value per share; 599,997,400 shares authorized, 8,520,685 issued and outstanding)			$85,207

Additional paid-in capital			120,145,548

Net distributable earnings			10,124,346


Net assets applicable to common stock			$130,355,101


NET ASSET VALUE PER SHARE OF COMMON STOCK			$15.30



INVESTMENT INCOME:

Interest			$3,581,266


EXPENSES:

Interest expense and amortization of deferred offering costs on preferred shares (Note 6)			1,258,852

Investment advisory fees (Note 3)			476,703

Administrative fees (Note 3)			88,351

Professional fees			49,600

Directors’ fees			44,919

Custodian fees			27,600

Reports to shareholders			21,431

Transfer agent fees			13,635

Other expenses			34,797


Total expenses			2,015,888


Net investment income			1,565,378


REALIZED AND UNREALIZED GAIN:

Net realized gain on investments			66,795

Net change in unrealized appreciation (depreciation) on investments			7,015,758


Net realized and unrealized gain on investments			7,082,553


NET INCREASE IN NET ASSETS APPLICABLE TO COMMON STOCK RESULTING FROM OPERATIONS			$8,647,931


	For the six months ended April 30, 2019 (Unaudited)			For the year ended October 31, 2018

OPERATIONS:

Net investment income		$1,565,378			$4,012,488

Net realized gain		66,795			1,378,409

Net change in unrealized appreciation (depreciation)		7,015,758			(9,232,584	)


Net increase (decrease) in net assets applicable to common stock resulting from operations		8,647,931			(3,841,687	)


DISTRIBUTIONS TO COMMON STOCKHOLDERS:

Net investment income and net realized gains		(2,842,766	)		(5,296,457	)


Decrease in net assets from distributions to common stockholders (Note 5)		(2,842,766	)		(5,296,457	)


Total increase (decrease) in net assets		5,805,165			(9,138,144	)

TOTAL NET ASSETS APPLICABLE TO COMMON STOCK:

Beginning of period		124,549,936			133,688,080


End of period		$130,355,101			$124,549,936



INCREASE (DECREASE) IN CASH

Cash flows provided by (used in) operating activities:

Interest received	$4,252,038

Expenses paid	(1,180,101	)

Interest expense paid	(883,041	)

Purchase of investment securities	(8,646,996	)

Proceeds from sales and maturities of investment securities	7,191,898


Net cash provided by operating activities			$733,798

Cash flows provided by (used in) financing activities:

Distributions paid	(2,842,766	)


Net cash used in financing activities			(2,842,766	)


Net decrease in cash			(2,108,969	)

Cash-beginning of period			2,130,685


Cash-end of period			$21,716


Reconciliation of net increase in net assets resulting from operations to net cash provided by operating activities:

Net increase in net assets resulting from operations			$8,647,931

Purchase of investment securities	(8,646,996	)

Proceeds from sales and maturities of investment securities	7,191,898

Net amortization and accretion of premiums and discounts on debt securities	746,215

Amortization of deferred offering costs	15,886

Net realized gain on investments	(66,795	)

Net change in unrealized (appreciation) depreciation on investments	(7,015,758	)

Increase in interest receivable	(75,443	)

Decrease in accrued expenses	(63,140	)


Total adjustments			(7,914,133	)


Net cash provided by operating activities			$733,798


	For the six months ended April 30, 2019 (Unaudited)			For the year ended October 31,
PER SHARE DATA:	For the six months ended April 30, 2019 (Unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period		$14.62			$15.69			$16.31			$16.31			$16.70			$15.74


Net investment income		0.18			0.47			0.54			0.57			0.69			0.73

Net realized and unrealized gain (loss)		0.83			(0.92	)		(0.41	)		0.30			(0.24	)		1.08


Net increase (decrease) from investment operations applicable to common stock		1.01			(0.45	)		0.13			0.87			0.45			1.81


Distributions on common stock:

Net investment income		(0.21	)		(0.59	)		(0.70	)		(0.84	)		(0.84	)		(0.85	)

Net realized gains		(0.12	)		(0.03	)		(0.05	)		(0.03	)		—			—


Total distributions		(0.33	)		(0.62	)		(0.75	)		(0.87	)		(0.84	)		(0.85	)


Net asset value, end of period		$15.30			$14.62			$15.69			$16.31			$16.31			$16.70


Per share market value, end of period		$13.63			$12.34			$14.16			$15.08			$15.13			$15.15


RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON STOCK:

Operating expenses		3.19	%*		2.58	%		2.29	%		2.16	%		1.86	%		1.89	%

Operating expenses, without leverage		1.17	%*		1.16	%		1.15	%		1.13	%		1.11	%		1.13	%

Net investment income		2.48	%*		3.10	%		3.42	%		3.45	%		4.21	%		4.51	%

SUPPLEMENTAL DATA:

Total return on market value⁽¹⁾		13.32	%		(8.72	)%		(1.21	)%		5.31	%		5.55	%		13.19	%

Total return on net asset value⁽¹⁾		7.01	%		(2.94	)%		0.95	%		5.41	%		2.77	%		11.79	%

Portfolio turnover rate		3	%		23	%		17	%		14	%		16	%		9	%

Net assets applicable to common stock, end of period (000’s omitted)		$130,355			$124,550			$133,688			$138,973			$138,981			$142,225

Preferred stock outstanding, end of period (000’s omitted)⁽²⁾		$65,000			$65,000			$65,000			$65,000			$65,000			$65,000

Asset coverage on preferred stock⁽³⁾		$300,546			$291,615			$305,674			$313,804			$313,817			$318,808

Asset coverage ratio on preferred stock⁽⁴⁾		301	%		292	%		306	%		314	%		314	%		319	%


	10/31/2018
Distributions paid from:
Tax-exempt income		$4,984,600
Ordinary income		1,465
Long-term capital gains		310,392

Total distributions		$5,296,457


	Shares Voted For		Shares Withheld
1. Election of directors*
To elect three directors to serve until the Annual Meeting in the year 2022 or until their successors are duly elected and qualified:
Robert J. Genetski** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		650		0
Philip R. McLoughlin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		6,858,452		633,343
Nathan I. Partain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		6,875,043		616,752


(a)	Exhibit 99.CERT	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(b)	Exhibit 99.906CERT	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


(Registrant)		DTF TAX-FREE INCOME INC.

By (Signature and Title)		/s/ NATHAN I. PARTAIN

		Nathan I. Partain
		President and Chief Executive Officer
		(Principal Executive Officer)
Date		June 27, 2019