T. Rowe Price State Tax-Free Funds, Inc. (0000795384) (Filer)
SEC · EDGAR 财务披露 · October 21, 2026 at 9:07 AM ET
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04521
T. Rowe Price State Tax-Free Funds, Inc.
(Exact name of registrant as specified in charter)
1307 Point Street, Baltimore, MD 21231
(Address of principal executive offices)
David Oestreicher
1307 Point Street, Baltimore, MD 21231
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: February 28
Date of reporting period: August 31, 2026
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
August 31, 2026
Maryland Short-Term Municipal Bond Fund
Investor Class (PRMDX)
This semi-annual shareholder report contains important information about Maryland Short-Term Municipal Bond Fund (the "fund") for the period of March 1, 2026 to August 31, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or [email protected] or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment | |
|---|---|---|
Maryland Short-Term Municipal Bond Fund - Investor Class |
$27 |
0.53% |
What are some fund statistics?
Fund Statistics
Total Net Assets (000s) |
$184,034 |
|---|---|
Number of Portfolio Holdings |
208 |
Portfolio Turnover Rate |
19.1% |
|---|
What did the fund invest in?
State Allocation (as a % of Net Assets)
Maryland |
93.5% |
|---|---|
Puerto Rico |
4.8 |
Alabama |
1.1 |
California |
0.6 |
Texas |
0.3 |
Other |
-0.3 |
Industry Allocation (as a % of Net Assets)
General Obligations - Local |
22.8% |
|---|---|
Housing |
16.0 |
Special Tax |
14.7 |
General Obligations - State |
12.6 |
Health Care |
12.3 |
Transportation |
10.7 |
Leasing |
2.3 |
Industrial & Pollution Control |
2.2 |
Water & Sewer |
1.8 |
Other |
4.6 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
202505-4461501
F90-053 10/26
Maryland Short-Term Municipal Bond Fund
Investor Class (PRMDX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Semi-Annual Shareholder Report
August 31, 2026
Maryland Short-Term Municipal Bond Fund
I Class (TRMUX)
This semi-annual shareholder report contains important information about Maryland Short-Term Municipal Bond Fund (the "fund") for the period of March 1, 2026 to August 31, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or [email protected] or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment | |
|---|---|---|
Maryland Short-Term Municipal Bond Fund - I Class |
$22 |
0.43% |
What are some fund statistics?
Fund Statistics
Total Net Assets (000s) |
$184,034 |
|---|---|
Number of Portfolio Holdings |
208 |
Portfolio Turnover Rate |
19.1% |
|---|
What did the fund invest in?
State Allocation (as a % of Net Assets)
Maryland |
93.5% |
|---|---|
Puerto Rico |
4.8 |
Alabama |
1.1 |
California |
0.6 |
Texas |
0.3 |
Other |
-0.3 |
Industry Allocation (as a % of Net Assets)
General Obligations - Local |
22.8% |
|---|---|
Housing |
16.0 |
Special Tax |
14.7 |
General Obligations - State |
12.6 |
Health Care |
12.3 |
Transportation |
10.7 |
Leasing |
2.3 |
Industrial & Pollution Control |
2.2 |
Water & Sewer |
1.8 |
Other |
4.6 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
202505-4461501
F1098-053 10/26
Maryland Short-Term Municipal Bond Fund
I Class (TRMUX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a – b) Report pursuant to Regulation S-X.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
August
31,
2026
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRMDX
Maryland
Short-Term
Municipal
Bond
Fund
TRMUX
Maryland
Short-Term
Municipal
Bond
Fund–
.
I Class
(Formerly
T.
Rowe
Price
Maryland
Short-Term
Tax-Free
Bond
Fund)
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Financial
Highlights
2
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
NET
ASSET
VALUE
Beginning
of
period
$
5.18
$
5.14
$
5.11
$
5.04
$
5.14
$
5.22
Investment
activities
Net
investment
income
(1)(2)
0.07
0.13
0.13
0.09
0.05
0.03
Net
realized
and
unrealized
gain/
loss
(0.06)
0.04
0.02
0.08
(0.10)
(0.08)
Total
from
investment
activities
0.01
0.17
0.15
0.17
(0.05)
(0.05)
Distributions
Net
investment
income
(0.06)
(0.13)
(0.12)
(0.10)
(0.05)
(0.03)
NET
ASSET
VALUE
End
of
period
$
5.13
$
5.18
$
5.14
$
5.11
$
5.04
$
5.14
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Financial
Highlights
3
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
Ratios/Supplemental
Data
Total
return
(2)(3)
0.29%
3.39%
3.05%
3.30%
(0.94)%
(0.93)%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.78%
(4)
0.76%
0.77%
0.75%
0.74%
0.67%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.53%
(4)
0.53%
0.53%
0.53%
0.53%
0.53%
Net
investment
income
2.56%
(4)
2.62%
2.45%
1.87%
1.02%
0.61%
Portfolio
turnover
rate
19.1%
22.9%
41.0%
45.8%
53.0%
37.2%
Net
assets,
end
of
period
(in
thousands)
$57,135
$58,907
$54,534
$57,823
$67,098
$73,668
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Financial
Highlights
4
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
NET
ASSET
VALUE
Beginning
of
period
$
5.20
$
5.15
$
5.12
$
5.05
$
5.15
$
5.23
Investment
activities
Net
investment
income
(1)(2)
0.07
0.14
0.13
0.10
0.06
0.04
Net
realized
and
unrealized
gain/
loss
(0.05)
0.05
0.03
0.07
(0.10)
(0.08)
Total
from
investment
activities
0.02
0.19
0.16
0.17
(0.04)
(0.04)
Distributions
Net
investment
income
(0.07)
(0.14)
(0.13)
(0.10)
(0.06)
(0.04)
NET
ASSET
VALUE
End
of
period
$
5.15
$
5.20
$
5.15
$
5.12
$
5.05
$
5.15
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Financial
Highlights
5
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
Ratios/Supplemental
Data
Total
return
(2)(3)
0.34%
3.68%
3.15%
3.40%
(0.84)%
(0.83)%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.60%
(4)
0.59%
0.59%
0.59%
0.58%
0.56%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.43%
(4)
0.43%
0.43%
0.44%
0.44%
0.43%
Net
investment
income
2.66%
(4)
2.71%
2.54%
1.98%
1.11%
0.69%
Portfolio
turnover
rate
19.1%
22.9%
41.0%
45.8%
53.0%
37.2%
Net
assets,
end
of
period
(in
thousands)
$126,899
$129,307
$109,997
$95,647
$91,688
$93,268
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
August
31,
2026
Unaudited
6
Portfolio
of
Investments
‡
Par
$
Value
(Amounts
in
000s)
‡
MUNICIPAL
SECURITIES 100.3%
ALABAMA
1.1%
Black
Belt
Energy
Gas
Dist.,
Series D-1,
VRDN,
4.00%,
7/1/52
(Tender
6/1/27)
1,000
1,006
Southeast
Energy
Auth.
A
Cooperative
Dist.,
Project
No.
1,
Series A,
VRDN,
4.00%,
11/1/51
(Tender
10/1/28)
1,000
1,010
2,016
CALIFORNIA
0.6%
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
Series B-1,
VRDN,
4.00%,
2/1/52
(Tender
8/1/31)
630
632
California
Community
Choice
Fin.
Auth.,
Green
Bond-Clean
Energy
Project,
Series E-1,
VRDN,
5.00%,
2/1/54
(Tender
3/1/31)
370
385
1,017
MARYLAND
93.5%
Anne
Arundel
County,
Consolidated
General
Improvements,
GO,
5.00%,
10/1/29
1,000
1,068
Anne
Arundel
County,
Villages
at
Two
Rivers
Project,
Series R,
5.00%,
7/1/28 (1)
160
165
Anne
Arundel
County,
Villages
at
Two
Rivers
Project,
Series R,
5.00%,
7/1/29 (1)
200
209
Anne
Arundel
County,
Watershed
at
Laurel
Project,
5.00%,
7/1/27 (1)
115
117
Anne
Arundel
County,
Watershed
at
Laurel
Project,
5.00%,
7/1/28 (1)
100
103
Anne
Arundel
County,
Watershed
at
Laurel
Project,
5.00%,
7/1/29 (1)
150
157
Baltimore
City,
Consolidated
Tax
Increment
Fin.,
5.00%,
6/15/29
135
135
Baltimore
City,
Convention
Center
Hotel,
5.00%,
9/1/26
1,000
1,000
Baltimore
City,
Convention
Center
Hotel,
5.00%,
9/1/30
150
151
Baltimore
City,
Harbor
Point,
Series A,
3.05%,
6/1/28 (2)
190
188
Baltimore
County,
GO,
5.00%,
2/1/29
4,000
4,220
Baltimore
County,
Consolidated
Public
Improvement,
GO,
5.00%,
3/1/27
785
795
Baltimore
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/1/28
2,000
2,086
Baltimore
County,
Metropolitan
Dist.
Bonds,
GO,
5.00%,
8/1/28
1,000
1,045
Baltimore
County,
Oak
Crest
Village,
5.00%,
1/1/29
395
396
Baltimore
County,
Oak
Crest
Village,
5.00%,
1/1/30
100
100
Baltimore
County,
Riderwood
Village
Project,
5.00%,
1/1/28
410
420
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
7
Par
$
Value
(Amounts
in
000s)
Brunswick
City,
Brunswick
Crossing
Special
Taxing
Dist.,
4.00%,
7/1/29
290
291
Charles
County,
Consolidated
Public
Improvement,
GO,
5.00%,
10/1/29
1,615
1,724
Charles
County,
Public
Improvement,
Series 2023,
GO,
5.00%,
10/1/26
1,800
1,804
Frederick
County,
Series A,
4.00%,
7/1/31
1,000
1,010
Frederick
County,
Series A,
GO,
5.00%,
4/1/27
1,000
1,014
Frederick
County,
Urbana
Community
Dev.
Auth.,
Series A,
5.00%,
7/1/27
120
122
Frederick
County,
Urbana
Community
Dev.
Auth.,
Series A,
5.00%,
7/1/28
175
181
Gaithersburg
City,
Asbury
Maryland
Obligated
Group,
Series B,
5.00%,
1/1/27
275
276
Harford
County,
Consolidated
Public
Improvement,
GO,
5.00%,
10/1/28
1,000
1,049
Howard
County,
Series A,
GO,
5.00%,
2/15/28
500
505
Howard
County,
Series C,
GO,
5.00%,
2/15/30
1,000
1,074
Howard
County
Housing
Commission,
Columbia
Landing
Apartments,
Series A,
1.60%,
6/1/29
1,000
946
Howard
County
Housing
Commission,
Roger
Carter
Recreational
Center,
5.00%,
6/1/27
190
193
Howard
County,
Annapolis
Junction
Town
Center
Project,
5.00%,
2/15/27
200
202
Hyattsville
City,
GO,
5.00%,
1/1/27
170
171
Maryland,
GO,
5.00%,
3/15/32
635
666
Maryland,
Series A,
GO,
5.00%,
3/15/27
2,060
2,087
Maryland,
Series A,
GO,
5.00%,
8/1/27
1,020
1,043
Maryland,
Series A,
GO,
5.00%,
3/15/28
1,080
1,094
Maryland,
Series A,
GO,
5.00%,
3/15/29
1,495
1,548
Maryland,
Series A,
GO,
5.00%,
6/1/29
1,110
1,178
Maryland,
Series A,
GO,
5.00%,
6/1/29
960
1,019
Maryland,
Series A,
GO,
5.00%,
8/1/29
2,990
3,052
Maryland,
Series A,
GO,
5.00%,
3/15/31
1,190
1,228
Maryland,
Series A,
GO,
5.00%,
8/1/32
815
875
Maryland,
Series B,
GO,
5.00%,
8/1/29
1,295
1,378
Maryland
CDA,
Series A,
1.75%,
3/1/30
1,000
925
Maryland
CDA,
Series A,
3.00%,
9/1/30
515
505
Maryland
CDA,
Series B,
1.50%,
3/1/30
645
589
Maryland
CDA,
Series B,
5.00%,
3/1/28
250
258
Maryland
CDA,
Series B,
5.00%,
3/1/29
820
853
Maryland
CDA,
Series C,
1.30%,
3/1/28
1,000
962
Maryland
CDA,
Series C,
1.55%,
3/1/29
750
711
Maryland
CDA,
Series C,
3.05%,
4/1/27
75
75
Maryland
CDA,
Series C,
3.15%,
4/1/28
50
50
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
8
Par
$
Value
(Amounts
in
000s)
Maryland
CDA,
Series C,
5.00%,
9/1/26
1,390
1,390
Maryland
CDA,
Series C,
5.00%,
9/1/29
150
157
Maryland
CDA,
Series C,
5.00%,
3/1/30
495
515
Maryland
CDA,
Series C,
5.00%,
9/1/31
1,150
1,202
Maryland
CDA
Local
Government
Infrastructure,
Series A-1,
5.00%,
6/1/27
270
274
Maryland
CDA
Local
Government
Infrastructure,
Series A-1,
5.00%,
6/1/28
545
566
Maryland
CDA
Local
Government
Infrastructure,
Series A-1,
5.00%,
6/1/29
335
354
Maryland
CDA
Local
Government
Infrastructure,
Series A-2,
5.00%,
6/1/27
245
249
Maryland
CDA
Local
Government
Infrastructure,
Series A-2,
5.00%,
6/1/28
275
285
Maryland
CDA
Local
Government
Infrastructure,
Series A-2,
5.00%,
6/1/29
285
301
Maryland
CDA
Local
Government
Infrastructure,
Series A-2,
5.00%,
6/1/30
300
321
Maryland
CDA,
Park
Place
at
Addison
Road
Metro,
Series C-2,
3.70%,
1/1/29
1,000
1,008
Maryland
CDA,
Villages
at
Marley
Station,
Series D-2,
3.30%,
1/1/29
2,130
2,141
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series A,
2.40%,
12/1/27
400
400
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series A,
3.15%,
5/1/27
1,000
1,002
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series A-1,
5.00%,
6/1/27
780
792
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series A-1,
5.00%,
6/1/28
815
845
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series B,
2.60%,
1/1/29
15
15
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series B,
2.65%,
7/1/29
160
158
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series B,
2.70%,
1/1/30
145
142
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series B,
2.95%,
9/1/30
225
223
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series B,
3.60%,
7/1/27
1,500
1,503
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series C,
3.25%,
1/1/28
105
105
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series C,
3.30%,
7/1/28
50
50
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series C,
3.35%,
1/1/29
110
111
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
9
Par
$
Value
(Amounts
in
000s)
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series C,
3.40%,
7/1/29
100
100
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
2.75%,
9/1/27
465
465
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
2.85%,
3/1/28
500
500
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
2.875%,
8/1/28 (3)
1,000
999
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
3.00%,
3/1/27
100
100
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
3.10%,
7/1/29 (3)
30
30
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series D,
3.15%,
1/1/30 (3)
35
35
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series E,
2.85%,
9/1/26
315
315
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series E,
2.90%,
3/1/27
215
215
Maryland
Dept.
of
Housing
&
Community
Dev.,
Series E,
3.30%,
3/1/30
635
632
Maryland
DOT,
Series 2017,
5.00%,
9/1/28
3,015
3,087
Maryland
DOT,
Series 2017,
5.00%,
9/1/29
4,225
4,316
Maryland
DOT,
Series 2018,
5.00%,
10/1/27
2,860
2,866
Maryland
DOT,
Series 2019,
2.125%,
10/1/31
805
745
Maryland
DOT,
Series 2019,
5.00%,
10/1/27
1,330
1,365
Maryland
DOT,
Series 2020,
5.00%,
10/1/26
1,370
1,373
Maryland
DOT,
Series 2020,
5.00%,
10/1/32
480
516
Maryland
DOT,
Series 2021B,
5.00%,
12/1/27
1,240
1,277
Maryland
DOT,
Series 2022B,
5.00%,
12/1/27
1,340
1,381
Maryland
DOT,
Series A,
4.00%,
10/1/30
570
587
Maryland
DOT,
Series A,
5.00%,
10/1/27
730
749
Maryland
DOT,
Series A,
5.00%,
4/1/28
1,050
1,090
Maryland
DOT,
Series A,
5.00%,
8/1/28 (1)(4)
1,725
1,790
Maryland
DOT,
Series B,
5.00%,
8/1/27 (4)
1,250
1,273
Maryland
DOT,
Series B,
5.00%,
8/1/28 (4)
1,350
1,399
Maryland
DOT,
Series B,
5.00%,
8/1/29 (4)
750
789
Maryland
DOT,
Series B,
5.00%,
8/1/31 (4)
660
708
Maryland
DOT,
Series C,
5.00%,
11/1/27
2,540
2,612
Maryland
DOT,
Series C,
5.00%,
11/1/29
525
561
Maryland
Economic
Dev.,
6.117%,
1/30/28 (2)
1,000
999
Maryland
Economic
Dev.,
Air
Cargo
Obligated
Group,
5.00%,
7/1/27 (4)
825
836
Maryland
Economic
Dev.,
Bowie
State
Univ.,
4.00%,
7/1/27
745
747
Maryland
Economic
Dev.,
Constellation
Energy
Group,
Series B,
VRDN,
4.10%,
10/1/36
(Tender
4/3/28)
3,115
3,169
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
10
Par
$
Value
(Amounts
in
000s)
Maryland
Economic
Dev.,
Morgan
State
Univ.,
5.00%,
7/1/27
750
761
Maryland
Economic
Dev.,
Salisbury
Univ.
Project,
5.00%,
6/1/27
335
335
Maryland
Economic
Dev.,
Towson
Univ.
Project,
5.00%,
7/1/27
50
51
Maryland
Economic
Dev.,
Towson
Univ.
Project,
5.00%,
7/1/28
305
308
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/27
110
111
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/29
1,000
1,031
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/30
250
257
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/31
1,000
1,028
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Leonardtown
Project,
5.00%,
7/1/28 (1)
310
321
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Leonardtown
Project,
5.00%,
7/1/29 (1)
555
583
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Leonardtown
Project,
5.00%,
7/1/30 (1)
820
872
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Project,
5.00%,
6/1/27 (1)
1,400
1,402
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Project,
5.00%,
6/1/30 (1)
520
521
Maryland
HHEFA,
Adventist
Healthcare,
4.00%,
1/1/27
640
642
Maryland
HHEFA,
Adventist
Healthcare,
4.00%,
1/1/30
250
252
Maryland
HHEFA,
Adventist
Healthcare,
5.00%,
1/1/27
300
302
Maryland
HHEFA,
Adventist
Healthcare,
5.00%,
1/1/29
290
300
Maryland
HHEFA,
Adventist
Healthcare,
5.00%,
1/1/30
285
297
Maryland
HHEFA,
Adventist
Healthcare,
5.00%,
1/1/31 (3)
1,500
1,582
Maryland
HHEFA,
Anne
Arundel
Health
System,
5.00%,
7/1/28
450
459
Maryland
HHEFA,
Broadmead,
Series A,
5.00%,
7/1/31
225
230
Maryland
HHEFA,
Charlestown
Community,
Series A,
5.00%,
1/1/28
550
551
Maryland
HHEFA,
Charlestown
Community,
Series A,
5.00%,
1/1/29
265
265
Maryland
HHEFA,
Edenwald
Issue,
4.00%,
1/1/29
25
25
Maryland
HHEFA,
John
Hopkins
Health
System,
Series A,
5.00%,
5/15/28
460
479
Maryland
HHEFA,
John
Hopkins
Health
System,
Series A,
5.00%,
5/15/29
225
237
Maryland
HHEFA,
Johns
Hopkins
Health
System,
Series A,
VRDN,
2.90%,
6/1/48
300
300
Maryland
HHEFA,
Lifebridge
Health,
3.00%,
7/1/30
20
20
Maryland
HHEFA,
Lifebridge
Health,
5.00%,
7/1/29
35
36
Maryland
HHEFA,
LifeBridge
Health,
5.00%,
7/1/32
565
573
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
11
Par
$
Value
(Amounts
in
000s)
Maryland
HHEFA,
Luminis
Health,
Series A,
5.00%,
7/1/30
1,000
1,063
Maryland
HHEFA,
MedStar
Health,
Series 2013A,
5.00%,
8/15/27
1,000
1,001
Maryland
HHEFA,
MedStar
Health,
Series A,
5.00%,
8/15/27
325
332
Maryland
HHEFA,
MedStar
Health,
Series A,
5.00%,
8/15/28
360
375
Maryland
HHEFA,
MedStar
Health,
Series C,
5.00%,
8/15/27
1,000
1,022
Maryland
HHEFA,
MedStar
Health,
Series C,
5.00%,
8/15/28
1,000
1,041
Maryland
HHEFA,
MedStar
Health,
Series C,
5.00%,
8/15/30
1,860
1,991
Maryland
HHEFA,
Mercy
Medical
Center,
Series A,
3.50%,
7/1/32
100
95
Maryland
HHEFA,
Meritus
Health
Issue,
5.00%,
7/1/29
2,000
2,111
Maryland
HHEFA,
Meritus
Health
Issue,
5.00%,
7/1/30
130
139
Maryland
HHEFA,
Stevenson
Univ.
Project,
5.00%,
6/1/28
545
558
Maryland
HHEFA,
Stevenson
Univ.
Project,
5.00%,
6/1/30
100
104
Maryland
HHEFA,
TidalHealth
Issues,
Series C,
5.00%,
7/1/28 (1)
250
259
Maryland
HHEFA,
TidalHealth
Issues,
Series C,
5.00%,
7/1/29 (1)
295
310
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
5.00%,
7/1/28
500
501
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series B-2,
VRDN,
5.00%,
7/1/45
(Tender
7/1/27)
2,685
2,703
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series D,
VRDN,
2.90%,
7/1/41
600
600
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/28
260
264
Maryland
Stadium
Auth.,
Construction
&
Revitalization,
5.00%,
5/1/30
1,000
1,034
Maryland
Stadium
Auth.,
Construction
&
Revitalization,
5.00%,
5/1/31
1,825
1,885
Maryland
Stadium
Auth.,
Construction
&
Revitalization,
5.00%,
5/1/32
1,255
1,294
Maryland
Stadium
Auth.,
Football
Stadium,
Series A,
5.00%,
3/1/31
1,265
1,370
Maryland
Transportation
Auth.,
Series A,
5.00%,
7/1/28
1,885
1,964
Maryland
Transportation
Auth.,
Baltimore/Washington
Int'l.
Airport,
Series A,
5.00%,
6/1/30 (4)
800
845
Maryland
Transportation
Auth.,
Passenger
Fac.
Charge
Revenue,
5.00%,
6/1/27 (4)
2,000
2,027
Maryland
Transportation
Auth.,
Passenger
Fac.
Charge
Revenue,
5.00%,
6/1/28 (4)
750
773
Maryland
Transportation
Auth.,
Passenger
Fac.
Charge
Revenue,
5.00%,
6/1/29 (4)
1,200
1,254
Maryland
Transportation
Auth.,
Passenger
Fac.
Charge
Revenue,
5.00%,
6/1/31 (4)(5)
1,530
1,593
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
12
Par
$
Value
(Amounts
in
000s)
Maryland
Transportation
Auth.,
Transportation
Fac.
Project,
5.00%,
7/1/29
1,325
1,407
Maryland,
Bidding
Group
1,
Series A,
GO,
5.00%,
8/1/29
330
351
Maryland,
State
&
Local
Facs.
Loan,
GO,
5.00%,
8/1/29
880
918
Maryland,
State
&
Local
Facs.
Loan,
GO,
5.00%,
8/1/30
1,000
1,041
Maryland,
State
&
Local
Facs.
Loan,
Series B,
GO,
5.00%,
8/1/28
760
795
Montgomery
County,
Series A,
GO,
5.00%,
8/1/27
1,135
1,160
Montgomery
County,
Series A,
GO,
5.00%,
10/1/28
1,000
1,049
Montgomery
County,
Series B,
GO,
4.00%,
11/1/26
815
817
Montgomery
County,
Series D,
GO,
4.00%,
11/1/27
2,260
2,296
Montgomery
County,
Series E,
GO,
VRDN,
2.95%,
11/1/37
1,600
1,600
Montgomery
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
11/1/31
1,285
1,341
Montgomery
County,
Housing
Opportunities
Commission,
Series C,
5.00%,
1/1/28
425
437
Montgomery
County,
Housing
Opportunities
Commission,
Series D,
3.40%,
1/1/31
1,835
1,832
Prince
George's
County,
Series B,
GO,
5.00%,
9/1/27
1,500
1,537
Prince
George's
County,
Series B,
GO,
5.00%,
9/15/27
2,500
2,564
Prince
George's
County,
Consolidated
Public
Improvement,
Series 2018A,
GO,
5.00%,
7/15/27
2,055
2,099
Prince
George's
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/15/27
935
955
Prince
George's
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/15/29
1,370
1,428
Prince
George's
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/15/31
250
259
Prince
George's
County,
Consolidated
Public
Improvement,
Series B,
GO,
5.00%,
7/1/29
2,500
2,659
Prince
George's
County,
Regional
Medical
Center,
COP,
5.00%,
10/1/26
260
260
Rockville,
Ingleside
at
King
Farm
Project,
Series A-2,
3.375%,
11/1/27
450
449
Univ.
System
of
Maryland,
Series A,
4.00%,
4/1/30
1,900
1,908
Washington
County,
GO,
5.00%,
7/1/27
1,095
1,117
Washington
Suburban
Sanitary
Commission,
5.00%,
6/1/27
945
962
Washington
Suburban
Sanitary
Commission,
5.00%,
6/1/29
1,500
1,593
Washington
Suburban
Sanitary
Commission,
5.00%,
6/1/29
400
425
Washington
Suburban
Sanitary
Commission,
Consolidated
Public
Improvement,
5.00%,
6/1/31
1,245
1,289
Washington
Suburban
Sanitary
Commission,
Montgomery
and
Prince
George's
Counties,
5.00%,
6/1/27
220
224
172,159
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
13
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Par
$
Value
(Amounts
in
000s)
PUERTO
RICO
4.8%
Municipality
of
San
Juan,
Series A,
GO,
5.00%,
7/1/27
65
66
Municipality
of
San
Juan,
Series A,
GO,
5.00%,
7/1/28
100
103
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/28 (2)
750
774
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/27
1,758
1,786
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/29
2,799
2,940
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/29
3,560
3,242
8,911
TEXAS
0.3%
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
I,
Senior
Lien,
Series A,
5.25%,
12/15/26
475
478
478
Total
Investments
in
Securities
100.3%
of
Net
Assets
(Cost
$184,362)
$
184,581
‡
Par
is
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Insured
by
Assured
Guaranty
Incorporated
(2)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$1,961
and
represents
1.1%
of
net
assets.
(3)
When-issued
security
(4)
Interest
subject
to
alternative
minimum
tax.
(5)
Insured
by
Build
America
Mutual
Assurance
Company
CDA
Community
Development
Administration/Authority
COP
Certificate
of
Participation
DOT
Department
of
Transportation
GO
General
Obligation
HHEFA
Health
&
Higher
Educational
Facility
Authority
VRDN
Variable
Rate
Demand
Note
under
which
the
holder
has
the
right
to
sell
the
security
to
the
issuer
or
the
issuer’s
agent
at
a
predetermined
price
on
specified
dates;
such
specified
dates
are
considered
the
effective
maturity
for
purposes
of
the
fund’s
weighted
average
maturity;
rate
shown
is
effective
rate
at
period-end
and
maturity
date
shown
is
final
maturity.
Certain
VRDN
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
August
31,
2026
Unaudited
Statement
of
Assets
and
Liabilities
14
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$184,362)
$
184,581
Interest
receivable
2,116
Receivable
for
shares
sold
303
Due
from
affiliates
3
Cash
1
Other
assets
29
Total
assets
187,033
Liabilities
Payable
for
investment
securities
purchased
2,649
Payable
for
shares
redeemed
108
Investment
management
fees
payable
59
Other
liabilities
183
Total
liabilities
2,999
Commitments
and
Contingent
Liabilities
(note
5
)
NET
ASSETS
$
184,034
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
(2,714)
Paid-in
capital
applicable
to
35,784,854
shares
of
$0.0001
par
value
capital
stock
outstanding;
2,000,000,000
shares
of
the
Corporation
authorized
186,748
NET
ASSETS
$
184,034
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$57,135;
Shares
outstanding:
11,126,562)
$
5.13
I
Class
(Net
assets:
$126,899;
Shares
outstanding:
24,658,292)
$
5.15
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Statement
of
Operations
15
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/26
Investment
Income
(Loss)
Interest
income
$
2,844
Expenses
Investment
management
352
Shareholder
servicing
Investor
Class
$
53
I
Class
11
64
Prospectus
and
shareholder
reports
Investor
Class
4
I
Class
3
7
Custody
and
accounting
101
Proxy
and
annual
meeting
31
Registration
24
Legal
and
audit
19
Miscellaneous
8
Waived
/
paid
by
Price
Associates
(179)
Total
expenses
427
Net
investment
income
2,417
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
loss
on
securities
(26)
Change
in
net
unrealized
gain
/
loss
on
securities
(1,797)
Net
realized
and
unrealized
gain
/
loss
(1,823)
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
594
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
Statement
of
Changes
in
Net
Assets
16
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/26
Year
Ended
2/28/26
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
2,417
$
4,627
Net
realized
loss
(26)
(8)
Change
in
net
unrealized
gain
/
loss
(1,797)
1,380
Increase
in
net
assets
from
operations
594
5,999
Distributions
to
shareholders
Net
earnings
Investor
Class
(712)
(1,440)
I
Class
(1,653)
(3,103)
Decrease
in
net
assets
from
distributions
(2,365)
(4,543)
Capital
share
transactions
*
Shares
sold
Investor
Class
8,509
16,821
I
Class
12,296
30,478
Distributions
reinvested
Investor
Class
682
1,382
I
Class
999
1,994
Shares
redeemed
Investor
Class
(10,412)
(14,281)
I
Class
(14,483)
(14,167)
Increase
(decrease)
in
net
assets
from
capital
share
transactions
(2,409)
22,227
Net
Assets
Increase
(decrease)
during
period
(4,180)
23,683
Beginning
of
period
188,214
164,531
End
of
period
$
184,034
$
188,214
*Share
information
(000s)
Shares
sold
Investor
Class
1,654
3,268
I
Class
2,385
5,899
Distributions
reinvested
Investor
Class
133
268
I
Class
194
386
Shares
redeemed
Investor
Class
(2,022)
(2,781)
I
Class
(2,808)
(2,747)
Increase
(decrease)
in
shares
outstanding
(464)
4,293
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
17
T.
Rowe
Price
State
Tax-Free
Funds,
Inc. (the
corporation)
is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Maryland
Short-
Term
Municipal
Bond
Fund
(the
fund),
formerly
the
T.
Rowe
Price
Maryland
Short-Term
Tax-Free
Bond
Fund,
is a
nondiversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks to
provide
the
highest
level
of
income
exempt
from
federal
and
Maryland
state
and
local
income
taxes
consistent
with
modest
fluctuation
in
principal
value.
The
fund
has two classes
of
shares:
the
Maryland
Short-Term
Municipal
Bond
Fund
(Investor
Class)
and
the
Maryland
Short-Term
Municipal
Bond
Fund–I
Class
(I
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Distributions
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
18
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any, are
declared
by
each
class daily
and
paid
monthly. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class’s
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class’s
outstanding
shares.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of
the
fund
is
represented
by
fund
shares.
The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
Eastern
time,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
New
Accounting
Guidance
In September
2026,
the
FASB
issued
Accounting
Standards
Update
(ASU)
ASU
2026-03,
Fair
Value
Measurement
(Topic
820)
–
Investment
Companies
with
Equity
Securities
Subject
to
Contractual
Sale
Restrictions,
which
requires
investment
companies
within
the
scope
of
ASC
946
to
consider
contractual
sale
restrictions
on
the
sale
of
an
equity
security
when
measuring
the
fair
value
of
the
security
and
to
disclose
the
amount
of
the
discount
attributable
to
the
contractual
sale
restriction.
The
amendments
under
the
ASU
are
effective
for
fiscal
years
beginning
after
December
15,
2027;
however,
early
adoption
is
permitted.
Adoption
of
the
guidance
is
not
expected
to
have
a
material
impact
on
the
fund’s
financial
statements.
Indemnification
In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
19
NOTE
2
-
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
20
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Debt
securities
are
generally traded
in
the over-the-
counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Assets
and
liabilities
other
than
financial
instruments,
including
short-term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
the
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
21
Valuation
Inputs
On
August
31,
2026
,
all
of
the
fund’s
financial
instruments
were
classified
as
Level
2,
based
on
the
inputs
used
to
determine
their
fair
values.
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective, the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of the
fund
are
described
more
fully
in the
fund’s prospectus
and
Statement
of
Additional
Information.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
When-Issued
Securities
The fund
enters
into
when-issued
purchase
or
sale
commitments,
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
an
authorized
but
not
yet
issued
security
for
a
fixed
unit
price,
with
payment
and
delivery
not
due
until
issuance
of
the
security
on
a
scheduled
future
date.
When-issued
securities
may
be
new
securities
or
securities
issued
through
a
corporate
action,
such
as
a
reorganization
or
restructuring.
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
a
when-issued
security.
Amounts
realized
on
when-issued
transactions
are
included
in
realized
gain/loss
on
securities
in
the
accompanying
financial
statements.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any,
and short-term securities
aggregated $34,861,000 and
$34,699,000,
respectively,
for
the
six
months ended
August
31,
2026.
NOTE
4
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
22
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-
end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
The
fund
intends
to
retain
realized
gains
to
the
extent
of
available
capital
loss
carryforwards.
Net
realized
capital
losses
may
be
carried
forward
indefinitely
to
offset
future
realized
capital
gains.
As
of
February
28,
2026,
the
fund
had
$3,161,000
of
available
capital
loss
carryforwards.
At
August
31,
2026,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$184,362,000.
Net
unrealized
gain
aggregated
$219,000
at
period-end,
of
which
$501,000
related
to
appreciated
investments
and
$282,000
related
to
depreciated
investments.
NOTE
5
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group).
The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly. The
fee
consists
of
an
individual
fund
fee,
equal
to
0.10%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.26%
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
August
31,
2026,
the
effective
annual
group
fee
rate
was
0.28%.
The
Investor
Class
is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
by
the
fund’s
Board.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the class’s ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
The
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s net
assets
grow
or
expenses
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
23
decline
sufficiently
to
allow
repayment
without
causing
the class’s net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval by
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
Pursuant
to
these
agreements,
expenses
were waived/paid
by
and/or
repaid
to
Price
Associates
during
the six
months
ended August
31,
2026 as
indicated
in
the
table
below.
Including
these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $900,000 remain
subject
to
repayment
by
the
fund
at
August
31,
2026. Any
repayment
of
expenses
previously
waived/paid
by
Price
Associates
during
the
period
would
be
included
in
the
net
investment
income
and
expense
ratios
presented
on
the
accompanying
Financial
Highlights.
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
a
wholly
owned
subsidiary
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.53%
0.05%
Expense
limitation
date
04/30/28
04/30/28
(Waived)/repaid
during
the
period
($000s)
$(71)
$(108)
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
24
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
For
the
six
months
ended
August
31,
2026,
expenses
incurred
pursuant
to
these
service
agreements
were
$63,000
for
Price
Associates
and
$34,000
for
T.
Rowe
Price
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
The fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
Purchases
and
sales
cross
trades
aggregated
$2,400,000
and
$0,
respectively,
with
net
realized
gain
of
$0
for
the
six
months
ended
August
31,
2026.
NOTE
6
-
SEGMENT
REPORTING
Operating segments
are
defined
as
components
of
a
company
that
engage
in
business
activities
and
for
which
discrete
financial
information
is
available
and
regularly
reviewed
by
the
chief
operating
decision
maker
(CODM)
in
deciding
how
to
allocate
resources
and
assess
performance.
The
Management
Committee
of
Price Group
acts
as
the
fund’s
CODM.
The
fund
makes
investments
in
accordance
with
its
investment
objective
as
outlined
in
the
Prospectus
and
is
considered
one
reportable
segment
because
the
CODM
allocates
resources
and
assesses
the
operating
results
of
the
fund
on
the
whole.
The
fund’s
revenue
is
derived
from
investments
in
a
portfolio
of
securities.
The
CODM
allocates
resources
and
assesses
performance
based
on
the
operating
results
of
the
fund,
which
is
consistent
with
the
results
presented
in
the
statement
of
operations,
statement
of
changes
in
net
assets
and
financial
highlights.
The
CODM
compares
the
fund’s
performance
to
its
benchmark
index
and
evaluates
the
positioning
of
the
fund
in
relation
to
its
investment
objective.
The
measure
of
segment
assets
is
net
assets
of
the
fund
which
is
disclosed
in
the
statement
of
assets
and
liabilities.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
25
The accounting
policies
of
the
segment
are
the
same
as
those
described
in
the
summary
of
significant
accounting
policies.
The
financial
statements
include
all
details
of
the
segment
assets,
segment
revenue
and
expenses;
and
reflect
the
financial
results
of
the
segment.
NOTE
7
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
and
regulatory
developments
(including
trading
and
tariff
arrangements),
and
public
health
epidemics
or
threats,
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
a
fund
invests.
The
extent
and
duration
of
such
events
and
resulting
market
disruptions
cannot
be
predicted.
These
and
other
similar
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-
existing
political,
social,
and
economic
risks.
The
fund’s
performance
could
be
negatively
impacted
if
the
value
of
a
portfolio
holding
were
harmed
by
these
or
such
events.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
26
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
Each
year,
the
fund’s
Board
of
Directors
(Board)
considers
the
continuation
of
the
investment
management
agreement
(Advisory
Contract)
between
the
fund
and
its
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser).
In
that
regard,
at
a
meeting
held
on
March
11-12,
2026
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors
who
were
present
in
person
at
the
Meeting,
approved
the
continuation
of
the
fund’s
Advisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
the
approval
of
the
Advisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
Contract
by
independent
legal
counsel
from
whom
they
received
separate
legal
advice
and
with
whom
they
met
separately.
In
providing
information
to
the
Board,
the
Adviser
was
guided
by
a
detailed
set
of
requests
for
information
submitted
by
independent
legal
counsel
on
behalf
of
the
independent
directors.
In
considering
and
approving
the
continuation
of
the
Advisory
Contract,
the
Board
considered
the
information
it
believed
was
relevant,
including,
but
not
limited
to,
the
information
discussed
below.
The
Board
considered
not
only
the
specific
information
presented
in
connection
with
the
Meeting
but
also
the
knowledge
gained
over
time
through
interaction
with
the
Adviser
about
various
topics
and
information
provided
to
it
by
the
Adviser.
The
Board
meets
regularly
and,
at
each
of
its
meetings,
covers
an
extensive
agenda
of
topics
and
materials
and
considers
factors
that
are
relevant
to
its
annual
consideration
of
the
renewal
of
the
T.
Rowe
Price
funds’
advisory
contracts,
including
performance
and
the
services
and
support
provided
to
the
funds
and
their
shareholders.
Services
Provided
by
the
Adviser
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser.
These
services
include,
but
are
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance
and
infrastructure,
as
well
as
compliance
with
new
and
evolving
regulatory
requirements
(e.g.,
derivatives
and
liquidity
risk
management);
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management
team
and
investment
personnel
involved
in
the
management
of
the
fund,
as
well
as
the
Adviser’s
compliance
record.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
nature,
quality,
and
extent
of
the
services
provided
by
the
Adviser,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
27
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
(as
applicable)
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2025.
Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2025,
which
ranked
the
returns
of
the
fund’s
Investor
Class
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
investment
company
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
length
of
the
fund’s
performance
track
record,
and
how
closely
the
fund’s
strategies
align
with
its
benchmarks
and
peer
groups.
The
Board
noted
that,
as
of
December
31,
2025,
the
fund
lagged
its
benchmark
for
most
performance
periods
and,
where
applicable,
the
fund’s
total
returns
ranked
in
the
4th
quartile
for
most
periods
when
compared
to
performance
peer
groups
selected
by
third-party
data
providers.
The
Adviser
provided
the
Board
with
information
addressing
the
fund’s
performance
relative
to
its
benchmarks
and
performance
peers
(as
applicable)
during
the
applicable
periods,
the
primary
reasons
for
such
results,
and,
if
applicable,
efforts
being
undertaken
to
improve
performance.
The
Board
considered
the
Adviser’s
responses
and,
if
applicable,
its
efforts
and
plans
to
improve
the
fund’s
investment
performance
and
noted
that
it
will
continue
to
periodically
review
the
fund’s
performance.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
fund’s
performance,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
Costs,
Benefits,
Profits,
and
Economies
of
Scale
The
Board
reviewed
detailed
information
regarding
the
revenues
received
by
the
Adviser
under
the
Advisory
Contract
and
other
direct
and
indirect
benefits
that
the
Adviser
(and
its
affiliates)
may
have
realized
from
its
relationship
with
the
fund,
including
any
research
received
under
soft-dollar
arrangements
with
broker-dealers.
In
considering
soft-dollar
arrangements,
the
Board
noted
that
the
Adviser
may
use
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
28
brokerage
commissions
in
connection
with
certain
T.
Rowe
Price
funds’
securities
transactions
to
pay
for
research
when
permissible,
and
the
Board
considered
that
the
Adviser
may
receive
some
benefit
from
soft-dollar
arrangements
pursuant
to
which
research
is
received
from
broker-dealers
that
execute
the
applicable
fund’s
portfolio
transactions.
While
the
Board
did
not
review
information
regarding
profits
realized
from
managing
the
fund
in
particular
because
the
fund
had
either
not
achieved
sufficient
portfolio
asset
size
or
the
Adviser
had
not
recognized
sufficient
revenues
to
produce
meaningful
profit
margin
percentages,
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
T.
Rowe
Price
funds.
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
potentially
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
a
management
fee
to
the
Adviser
for
investment
management
services
composed
of
two
components
–
a
group
fee
rate
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
mutual
funds
and
ETFs
(including
the
fund)
(“group
fee
rate
assets”)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets
–
and
the
fund
pays
its
own
expenses
of
operations.
The
group
fee
schedule
is
graduated
so
the
group
fee
rate
decreases
as
total
group
fee
rate
assets
increase
and
the
group
fee
rate
increases
as
total
group
fee
rate
assets
decrease.
As
a
result,
shareholders
benefit
from
overall
growth
in
T.
Rowe
Price
fund
assets,
which
reduces
the
management
fee
rate
for
any
fund
that
has
a
group
fee
component
to
its
management
fee,
and
reflects
that
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds
thus
allowing
shareholders
of
those
funds
to
share
potential
economies
of
scale.
The
fund’s
shareholders
also
benefit
from
potential
economies
of
scale
through
a
decline
in
certain
operating
expenses
as
the
fund
grows
in
size.
However,
the
fund
is
also
subject
to
contractual
expense
limitations
that
require
the
Adviser
to
waive
its
management
fees
and/or
bear
any
operating
expenses
that
would
otherwise
cause
the
expenses
of
a
share
class
of
the
fund
to
exceed
a
certain
percentage
based
on
the
class’s
net
assets.
The
expense
limitations
mitigate
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders.
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
29
In
addition,
the
Board
noted
that
the
fund
shares
in
potential
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-party
service
providers.
The
Board
concluded
that
the
management
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
potential
economies
of
scale
with
the
fund
and
its
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group);
and
(ii)
actual
management
fees
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflects
the
management
fees
actually
received
from
the
fund
by
the
Adviser
after
any
applicable
waivers,
reductions,
or
reimbursements),
operating
expenses,
and
total
expenses
(which
reflect
the
net
total
expense
ratio
of
the
fund
after
any
waivers,
reductions,
or reimbursements)
in
comparison
with
the
information
for
the
Broadridge
peer
groups.
Broadridge
generally
constructed
the
peer
groups
by
seeking
the
most
comparable
funds
based
on
similar
investment
classifications
and
objectives,
expense
structure,
asset
size,
and
operating
components
and
attributes
and
ranked
funds
into
quintiles,
with
the
first
quintile
representing
the
funds
with
the
lowest
relative
expenses
and
the
fifth
quintile
representing
the
funds
with
the
highest
relative
expenses.
The
information
provided
to
the
Board
for
the
fund’s
Investor
Class
indicated
that
the
contractual
management
fee
ranked
in
the
fourth
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
first
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fifth
quintile
(Expense
Group
and
Expense
Universe).
The
information
provided
to
the
Board
for
the
fund’s
I
Class
indicated
that
the
contractual
management
fee
ranked
in
the
fourth
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
second
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fourth
quintile
(Expense
Group
and
Expense
Universe).
The
Board
was
provided
the
fee
schedules
and
other
account
fee
information
for
certain
comparable
investment
portfolios
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios
that
are
not
registered
investment
companies,
including
collective
investment
trusts
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Municipal
Bond
Fund
30
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
The
fee
schedules
and
account
fee
information,
which
are
subject
to
change,
may
be
negotiated
under
certain
circumstances
and
may
differ
across
regions.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
clients
and
other
types
of
clients,
including
information
about
how
the
requirements,
economics
and
risks
of
the
domestic
and
international
businesses
may
differ
from
those
of
the
proprietary
mutual
fund
and
ETF
(“registered
fund”)
business.
The
Board
considered
information
showing
that
the
Adviser’s
proprietary
registered
fund
business
is
generally
more
complex
from
a
business
and
regulatory
perspective
than
its
other
domestic
and
international
businesses
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
registered
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
registered
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
Approval
of
the
Advisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract.
No
single
factor
was
considered
in
isolation
or
to
be
determinative
to
the
decision.
Rather,
the
Board
concluded,
in
light
of
a
weighting
and
balancing
of
all
factors
considered,
that
it
was
in
the
best
interests
of
the
fund
and
its
shareholders
for
the
Board
to
approve
the
continuation
of
the
Advisory
Contract
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
1307
Point
Street
Baltimore,
Maryland
21231
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-638-5660
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
F90-051
10/26
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Remuneration paid to Directors is included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
If applicable, see Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 16. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during 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.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
| (a)(1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. | |
| (2) | Listing standards relating to recovery of erroneously awarded compensation: Not applicable. | |
| (3) | ||
| (b) |
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.
| T. Rowe Price State Tax-Free Funds, Inc. | ||||
| By | /s/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date | October 16, 2026 | |||
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/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date | October 16, 2026 | |||
| By | /s/ Alan S. Dupski |
|||
| Alan S. Dupski | ||||
| Principal Financial Officer | ||||
| Date | October 16, 2026 | |||