T. Rowe Price Tax-Free High Yield Fund

T. ROWE PRICE TAX-FREE HIGH YIELD FUND, INC. · 3 share classes

Actively managed U.S. bond fund
One fund, 3 share classes:PRFHXPATFXPTYIX
$3.62B NAV
1,069 positions · as of 2026-05-31 · filed 2026-07-28

Fund classification

Classified from what the fund holds · as of 2026 Q2

T. Rowe Price Tax-Free High Yield Fund is an actively managed U.S. bond fund. 39% of PRFHX’s stock holdings are in companies whose revenue grew in the top quartile of U.S. companies over the last five fiscal years (covering 100% of the fund’s equity).

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
High yield
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q2

The fund seeks to provide a high level of income exempt from federal income taxes by investing primarily in long-term low- to upper-medium-grade municipal securities.

Strategy · summarised

The fund invests primarily in longer-term municipal bonds whose income is exempt from federal income taxes, with emphasis on higher-yielding securities including those rated below investment grade. T. Rowe Price uses fundamental credit research to select bonds across municipal sectors and issuers, managing duration and diversification to balance yield with risk. The fund may invest significantly in sectors with special risks such as health care, transportation, and utilities.

Expenses
0.50% 0.97%across 3 share classes
Share classExpense ratioAs of
PRFHX0.63%2025 Q2
PATFX0.97%2025 Q2
PTYIX0.50%2025 Q2

Portfolio turnover 18.80% · as of 2026 Q2

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.13%
of net assets
Bonds98.99%
Securitized0.14%
Stocks0.00%

Portfolio growth profile

How much of the fund’s stock holdings are in fast-growing companies · as of 2026 Q2

Revenue growth
39%of stock holdings in top-quartile growers
covering 100% of the fund’s equity

Share of the fund’s equity (by value) in companies whose trailing five-year revenue — or net-income — growth ranks in the top 25% of U.S. public companies. Foreign and newly-listed holdings are excluded, so the figure covers only part of the book. From SEC filings — not investment advice. How we measure this.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 58 new18 exited

Largest new: CA CMTY CHOICE AUTH PROJ SER B-1, BLACK BELT ENERGY-E, VA HSG DEV AUTH-G, BLACK BELT ENERGY GAS, AUSTIN-B-REV-AMT AMT, NEW YORK NY SER B-5 DAILY, BARTOW CO-CONV CABS 144A, WI HLTH EDUCTNL FACS 144A

Largest exited: MA DEV FIN AGY-G-1, FLORIDA ST DEV FIN CO WASTE PRO AMT 144A PUT, LOUISVILLE CO KY NORTON HLTHCRE SR D DLY, TN ENERGY ACQ GAS SR A, AR ST FIN REV BIG RIV STL PROJ 144A AMT ×2, TARRANT CO CULTURAL BAYLOR HLTH SR D DLY, TEXAS ST PRIV ACT NTE MBL SEG 3C REV AMT

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+7.89%+16.65%+7.41%4.67%-6.46%
+7.46%+15.36%+5.65%4.66%-6.51%
+8.05%+17.13%+8.21%4.66%-6.35%

These classes hold the same portfolio, so the 2.56pp spread over 5 years is the cost difference between them — roughly 0.51pp a year — not a difference in what they own.

Cumulative return· Jun 2023 – Apr 2026

May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31

Avg coupon
4.61%
Avg maturity
21.05 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

6%
floating
Fixed rate83.5%
Zero-coupon or unclassified10.5%
Floating rate6.1%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.7%
1-3y1.4%
3-5y2.8%
5-10y10.6%
10y+84.6%
Flagged holdings
Defaulted: 1.62% · $58.12M · 46 positions
In arrears: 1.62% · $58.12M · 46 positions
Paid in kind: 0.27% · $9.56M · 2 positions

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.

Interest-rate duration
6.96 yr
approx. move per 100bp
Credit-spread duration
6.78 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -13.5%
of value
Interest rates51%
Credit spreads49%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+6.78
yrs total
High yield+3.85 yr
Investment grade+2.93 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate6.96 yr total
3 mo30 yr
3 mo0.15 yr2%
1 yr0.28 yr4%
5 yr1.38 yr20%
10 yr2.87 yr41%
30 yr2.28 yr33%
Credit spread6.78 yr total
3 mo30 yr
3 mo0.10 yr2%
1 yr0.28 yr4%
5 yr1.36 yr20%
10 yr2.81 yr42%
30 yr2.23 yr33%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.15+0.05+0.05$18.4k$18.5k
1 yr+0.28+0.14+0.14$50.3k$49.7k
5 yr+1.38+0.81+0.55$294.5k$197.9k
10 yr+2.87+1.22+1.59$442.0k$576.3k
30 yr+2.28+0.70+1.52$253.8k$551.6k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
PR SALES TAX FING SALES TAX REV SER A10.00% · due 2046-07-011.67%$60.39M
BUCKEYE OH TOB STLMT SR B-2 CL 25.00% · due 2055-06-011.58%$57.06M
PR SALES TAX FING SALES TAX REV SER A15.00% · due 2058-07-011.08%$39.26M
MET PIER EXPO MCCORMICK A0.00% · due 2033-12-150.98%$35.36M
GOLDEN ST TOBACCO SEC TOBACCO SUB SR B-20.00% · due 2066-06-010.74%$26.77M
TOB SETTLE FING CORP NJ SER B5.00% · due 2046-06-010.59%$21.51M
PR COMWLTH SUBSER PRIFA RUM TXBL0.00% · due 2051-11-010.56%$20.41M
CA CMNTY HSG STONERIDGE APTS SER A 144A4.00% · due 2056-02-010.50%$18.19M
PUB FIN AUTH-AMT AMT5.75% · due 2060-06-300.50%$17.99M
PR COMWLTH CVI-SUBSER CW HTA 98 TXBL0.00% · due 2051-11-010.48%$17.52M
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Top 10 positions are 8.69% of net assets, top 25 14.97%, across 647 issuers.

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