Western Asset Investment Grade Income Fund : 2019 Tax Guide

2019 Legg Mason Tax Guide

IMPORTANT TAX INFORMATION REGARDING YOUR MUTUAL FUNDS

This guide is a summary of tax information for certain Legg Mason, Brandywine Global, ClearBridge Investments, EnTrust Global, Martin Currie, QS Investors, RARE Infrastructure and Western Asset closed- end, open-end and exchange-traded funds. This information may be useful to you, as an investor, in the preparation of your 2019 Federal and state income tax returns. We recommend that you consult your tax advisor for assistance with how this information will impact your specific tax situation.

Table of contents
Exempt interest income - Multi-state funds	2
Exempt interest income ‒ Single state funds	4
Income from Federal obligations	5
Foreign source income	6
Dividends Received Deduction for Corporations	8

Please see back cover for important disclosures

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SECTION 1

In this section you will find information for the Western Asset multi-state funds that have paid income dividends which are tax- exempt for regular Federal income tax purposes. The percentages of income earned by the funds from each state or U.S. Territory are listed below.

See Footnotes after Section 5.

Exempt interest income - Multi-state funds

		Western Asset		Western Asset		Western Asset		Western Asset		Western Asset	Western Asset Select
					Short Duration		Tax Free Reserves and
		Intermediate-Term	Managed		Municipal High Income	Municipal		SMASh Series TF	Western Asset Tax Free
		Municipals Fund		Municipals Fund		Fund		Income Fund		Fund		Reserves
	Alabama	0.66	%	3.65	%	6.97	%	5.75	%	1.61	%	0.06	%
	Alaska	0.04		0.22		-		0.52		0.10		0.20
	Arizona	1.81		1.50		3.16		2.09		7.39		1.66
	Arkansas	-		-		-		-		-		-
	California	17.02		18.51		8.41		2.20		15.73		1.68
	Colorado	4.39		2.69		5.45		4.04		1.53		0.83
	Connecticut	0.90		1.43		0.30		4.02		2.74		2.66
	Delaware	0.22		0.49		1.95		-		0.15		1.15
	District of Columbia	0.48		0.63		1.22		-		0.34		0.68
	Florida	5.94		5.99		1.45		1.20		3.13		3.49
	Georgia	2.54		4.36		0.34		5.56		2.69		5.19
	Guam	-		-		-		-		-		-
	Hawaii	-		-		-		1.06		-		1.42
	Idaho	0.01		0.01		-		0.02		0.44		1.85
	Illinois	9.43		8.85		7.80		10.18		10.56		4.23
	Indiana	2.24		1.01		2.76		6.65		1.58		2.19
	Iowa	0.41		0.04		0.04		0.08		0.11		-
	Kansas	0.16		0.25		-		1.04		0.87		-
	Kentucky	1.14		1.34		3.56		3.93		2.27		-
	Louisiana	0.66		0.72		0.22		0.06		0.26		0.32
	Maine	-		-		-		-		-		-
	Maryland	1.25		1.77		2.35		1.92		0.49		0.46
	Massachusetts	1.41		4.04		3.61		1.05		5.46		3.05
	Michigan	3.17		2.40		2.00		1.00		1.07		1.68
	Minnesota	0.24		0.45		0.10		0.02		0.22		0.70
	Mississippi	0.02		0.12		0.01		0.09		0.02		1.25
	Missouri	0.33		0.82		1.97		0.02		0.88		2.78
	Montana	-		-		-		0.47		-		-
	Nebraska	0.21		0.01		1.86		-		-		-
	Nevada	0.39		0.44		0.65		1.12		0.02		-
	New Hampshire	0.02		0.04		-		-		-		-
	New Jersey	6.09		5.11		4.82		9.29		5.45		0.01
	New Mexico	0.96		0.01		0.36		2.98		0.07		-
	New York	9.69		8.44		5.08		8.37		6.09		34.29
	North Carolina	0.36		1.02		0.29		0.60		2.52		1.18
	North Dakota	-		-		-		-		-		-
	Ohio	0.22		0.52		1.97		1.65		2.08		0.68
	Oklahoma	-		-		2.71		-		-		-
	Oregon	0.93		0.70		0.23		1.11		3.39		1.71
	Pennsylvania	3.23		3.78		3.79		6.67		3.86		1.84
	Puerto Rico	0.33		0.29		0.24		-		0.67		-
	Rhode Island	0.22		0.22		-		-		-		-
	South Carolina	0.44		0.67		-		0.35		0.19		0.96
	South Dakota	-		0.05		-		-		0.08		0.68
	Tennessee	5.99		1.65		-		0.56		1.81		-
	Texas	9.90		9.39		19.91		7.88		7.03		10.98
	U.S. Virgin Islands	0.65		0.60		1.90		-		1.22		-
	Utah	0.21		0.36		0.37		0.01		2.68		0.83
	Vermont	0.01		0.13		-		-		-		0.01
	Virginia	1.17		1.16		-		2.64		0.19		0.38
	Washington	1.47		2.02		0.20		1.43		1.66		4.37
	West Virginia	0.75		0.16		0.02		0.88		0.06		-
	Wisconsin	1.76		1.76		1.93		1.46		1.12		3.17
	Wyoming	0.53		0.18		-		0.03		0.17		1.38
	Alternative Minimum Tax Percentage:	13.82%	%	9.75	%	10.85	%	23.11	%	13.99	%	16.55	%

2019 Legg Mason Tax Guide

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SECTION 1

In this section you will find information for the Western Asset multi-state funds that have paid income dividends which are tax- exempt for regular Federal income tax purposes. The percentages of income earned by the funds from each state or U.S. Territory are listed below.

See Footnotes after Section 5.

Exempt interest income - Multi-state funds

		Western Asset		Western Asset		Western Asset		Western Asset		Western Asset
				Municipal Defined
		Intermediate		Managed Municipals		Opportunity		Municipal High		Municipal Partners
		Muni Fund Inc.		Fund Inc.		Trust Inc.		Income Fund Inc.		Fund Inc.
		(SBI)		(MMU)		(MTT)		(MHF)		(MNP)
	Alabama	1.17	%	6.27	%	6.76	%	7.02	%	1.73	%
	Alaska	0.05		0.03		0.03		-		0.86
	Arizona	2.11		3.55		4.59		3.72		1.62
	Arkansas	-		-		-		-		-
	California	16.24		13.32		9.53		9.96		13.70
	Colorado	5.05		9.41		4.17		4.88		5.30
	Connecticut	0.90		0.48		0.72		0.45		1.00
	Delaware	-		-		0.18		1.44		0.24
	District of Columbia	0.10		0.38		0.10		1.65		0.42
	Florida	5.21		5.80		1.09		2.34		5.31
	Georgia	3.46		3.05		7.43		1.58		0.51
	Guam	-		-		-		-		-
	Hawaii	-		1.01		-		0.91		-
	Idaho	0.01		0.11		0.09		-		-
	Illinois	10.52		11.91		6.97		8.82		9.02
	Indiana	5.03		2.02		1.16		1.79		1.72
	Iowa	0.05		0.04		0.04		-		0.05
	Kansas	-		-		-		-		-
	Kentucky	1.29		1.10		0.93		2.77		0.51
	Louisiana	3.15		0.83		0.19		0.43		1.04
	Maine	-		-		-		-		-
	Maryland	0.07		0.06		0.55		2.64		0.47
	Massachusetts	0.91		3.26		0.80		1.96		2.17
	Michigan	2.29		3.07		3.07		1.52		1.94
	Minnesota	0.01		0.17		0.01		0.01		-
	Mississippi	0.01		0.01		0.09		0.01		0.02
	Missouri	0.47		0.99		0.34		2.73		0.64
	Montana	-		-		-		-		-
	Nebraska	0.29		-		-		2.21		-
	Nevada	1.79		0.19		-		0.53		-
	New Hampshire	-		-		-		-		-
	New Jersey	7.44		4.91		17.93		5.70		8.38
	New Mexico	-		-		-		0.04		-
	New York	8.02		7.89		14.08		2.29		14.08
	North Carolina	0.40		0.59		0.59		0.32		2.61
	North Dakota	-		-		-		-		-
	Ohio	0.28		1.40		0.04		0.44		2.13
	Oklahoma	1.06		0.06		0.01		1.04		1.08
	Oregon	0.96		0.21		0.20		0.71		0.72
	Pennsylvania	1.98		2.54		3.95		5.25		5.87
	Puerto Rico	0.33		0.28		0.25		0.10		0.30
	Rhode Island	-		0.50		2.33		-		-
	South Carolina	0.22		0.57		0.16		-		0.20
	South Dakota	-		0.05		-		-		0.08
	Tennessee	5.87		0.43		-		-		2.73
	Texas	5.66		9.64		5.86		18.19		7.64
	U.S. Virgin Islands	0.78		0.56		1.11		2.15		0.64
	Utah	0.16		0.79		0.90		0.50		0.13
	Vermont	0.01		-		-		-		-
	Virginia	2.58		1.05		0.97		2.42		0.32
	Washington	0.51		0.67		0.86		0.03		1.24
	West Virginia	0.03		0.02		0.02		0.02		0.03
	Wisconsin	3.52		0.78		1.89		1.42		3.54
	Wyoming	0.01		-		0.01		0.01		0.01
	Alternative Minimum Tax Percentage:	18.60	%	15.92	%	11.71	%	15.02	%	13.11	%

2018 Legg Mason Tax Guide

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SECTION 2

In this section you will find information for the Western Asset single state funds that have paid income dividends which are tax-exempt for regular Federal income tax purposes.

See Footnotes after Section 5.

Exempt interest income - Single state funds
				Percentage of
				income from
		Percentage of		obligations of		Percentage of
		income from		Puerto Rico, U.S.	income from		Alternative
	Specified state	obligations exempt	Virgin Islands and	obligations		Minimum Tax
Fund Name	in specified state	Guam		of other states	Percentage
Western Asset California Municipals Fund	California	97.90	%	1.75	%	0.35	%	6.12	%
Western Asset Intermediate Maturity California Municipals Fund	California	97.19		1.99		0.82		6.47
Western Asset Intermediate Maturity New York Municipals Fund	New York	97.25		2.43		0.32		14.68
Western Asset Massachusetts Municipals Fund	Massachusetts	98.29		1.13		0.58		0.66
Western Asset New Jersey Municipals Fund	New Jersey	98.59		1.16		0.25		14.97
Western Asset New York Municipals Fund	New York	96.92		2.84		0.24		11.27
Western Asset New York Tax Free Money Market Fund	New York	100.00		-		-		19.16
Western Asset Oregon Municipals Fund	Oregon	97.89		1.27		0.84		5.51
Western Asset Pennsylvania Municipals Fund	Pennsylvania	98.86		1.01		0.13		3.82

2018 Legg Mason Tax Guide

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