Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (n-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04254

Legg Mason Partners Income Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49 ^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-877-721-1926

Date of fiscal year end: March 31

Date of reporting period: June 30, 2013

ITEM 1.

SCHEDULE OF INVESTMENTS.

LEGG MASON PARTNERS INCOME TRUST

WESTERN ASSET NEW YORK MUNICIPALS FUND

FORM N-Q

JUNE 30, 2013

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited)		June 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT		VALUE
MUNICIPAL BONDS - 98.1%
Education - 14.8%
Amherst, NY, Development Corp., Student Housing Facility Revenue, AGM		5.000	%		10/1/40	$	2,370,000	$	2,430,625
Buffalo & Erie County, NY, Industrial Land Development Corp. Revenue, Buffalo State College Foundation Housing Corp. Project		5.375	%		10/1/41		2,040,000		2,176,088
Dutchess County, NY, Industrial Development Agency, Civic Facility Revenue, Refunding, Bard College		5.000	%		8/1/19		1,000,000		1,081,790
Erie County, NY, Industrial Development Agency, School Facility Revenue, Buffalo City School District		5.000	%		5/1/31		17,685,000		18,651,662
New York State Dormitory Authority Revenue:
4201 School Program		5.000	%		7/1/18		275,000		275,822
City University of New York, Consolidated Second General Resolution, AMBAC-TCRS		5.750	%		7/1/18		3,000,000		3,374,520
City University Systems, AGM		6.000	%		7/1/14		1,085,000		1,109,380
City University Systems, FGIC-TCRS		5.625	%		7/1/16		5,745,000		6,271,529
New York University		5.000	%		7/1/38		10,000,000		10,564,500
New York University, AMBAC		5.000	%		7/1/32		8,000,000		8,724,000
New York University, NATL		5.750	%		7/1/27		6,300,000		7,572,852
Non-State Supported Debt, Brooklyn Law School		5.750	%		7/1/33		1,750,000		1,831,078
Non-State Supported Debt, Manhattan Marymount		5.250	%		7/1/29		2,140,000		2,188,535
Non-State Supported Debt, New School University		5.500	%		7/1/40		25,000,000		27,204,750
Non-State Supported Debt, Skidmore College		5.500	%		7/1/41		3,200,000		3,421,728
Non-State Supported Debt, St. Joseph’s College		5.250	%		7/1/35		2,000,000		2,078,200
Non-State Supported Debt, University of New York, AMBAC		5.000	%		7/1/37		5,000,000		5,235,500
State University Adult Facilities, AGM		5.750	%		5/15/17		1,070,000		1,247,213
Orange County, NY, Funding Corp. Revenue:
Mount St. Mary College		5.000	%		7/1/37		1,320,000		1,361,474
Mount St. Mary College		5.000	%		7/1/42		500,000		512,005
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Pollution Control Facilities Financing Authority Revenue:
Ana G. Mendez University System Project		5.000	%		4/1/17		1,540,000		1,590,266
Ana G. Mendez University System Project		5.000	%		4/1/18		1,000,000		1,025,370
Rensselaer County, NY, IDA, Civic Facilities Revenue:
Polytechnic Institute Dormitory Project		5.125	%		8/1/27		5,820,000		5,825,005
Polytechnic Institute Dormitory Project		5.125	%		8/1/29		5,430,000		5,434,073
St. Lawrence County, NY, Industrial Development Agency, Civic Development Corp. Revenue:
Clarkson University Project		6.000	%		9/1/34		600,000		666,924
Clarkson University Project		5.375	%		9/1/41		1,750,000		1,847,388
Troy, NY, Capital Resource Corp. Revenue, Rensselaer Polytechnic Institute		5.125	%		9/1/40		15,000,000		15,623,550

Total Education									139,325,827

Health Care - 14.6%
Monroe County, NY, Industrial Development Corp., FHA, Insured Mortgage Revenue, Unity Hospital of Rochester Project		5.500	%		8/15/40		9,000,000		9,804,420
Nassau County, NY, Industrial Development Agency Revenue, Continuing Care Retirement, Amsterdam at Harborside		6.700	%		1/1/43		7,245,000		4,020,975

See Notes to Schedule of Investments.

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited) (cont’d)		June 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT		VALUE
Health Care - continued
Nassau County, NY, Local Economic Assistance Corp. Revenue:
South Nassau Communities Hospital		5.000	%		7/1/31	$	2,000,000	$	2,082,300
South Nassau Communities Hospital		5.000	%		7/1/37		1,000,000		1,007,920
Winthrop University Hospital Association Project		5.000	%		7/1/32		2,000,000		1,959,180
Winthrop University Hospital Association Project		5.000	%		7/1/42		9,250,000		8,947,618
New York City, NY, Health & Hospital Corp. Revenue, Health Systems		5.000	%		2/15/30		15,000,000		16,052,850
New York State Dormitory Authority Revenue:
Municipal Health Facilities		5.000	%		1/15/28		7,000,000		7,503,300
Municipal Health Facilities		5.000	%		1/15/32		25,000,000		26,132,250
New York University Hospitals Center		5.000	%		7/1/26		10,000,000		10,425,800
Non-State Supported Debt, Cabrini Westchester, GNMA-Collateralized, FHA		5.200	%		2/15/41		4,395,000		4,672,676
Non-State Supported Debt, Insured Mortgage Hospital Montefiore, FHA		5.000	%		8/1/22		2,500,000		2,752,775
Non-State Supported Debt, Mount Sinai Hospital		5.000	%		7/1/26		5,000,000		5,403,750
Non-State Supported Debt, North Shore Long Island Jewish Medical Center		5.250	%		5/1/30		8,750,000		9,359,962
Non-State Supported Debt, North Shore Long Island Jewish Medical Center		5.500	%		5/1/33		3,000,000		3,239,790
Non-State Supported Debt, North Shore Long Island Jewish Medical Center		5.500	%		5/1/37		13,000,000		13,962,000
North Shore University Hospital, NATL		5.500	%		11/1/14		2,500,000		2,662,075
United Cerebral Palsy, AMBAC		5.125	%		7/1/21		1,500,000		1,473,495
New York State Dormitory Authority Revenues, Non-State Supported Debt, NYU Hospitals Center		6.000	%		7/1/40		4,000,000		4,409,560
Syracuse, NY, Industrial Development Agency Revenue, Refunding, James Square Association, FHA		7.000	%		8/1/25		1,250,000		1,255,000

Total Health Care									137,127,696

Housing - 4.8%
New York City, NY, HDC, MFH Rental Revenue, Seaview Towers		4.600	%		7/15/26		8,275,000		8,497,349	^(a)
New York City, NY, HDC, MFH Revenue		4.600	%		11/1/26		6,250,000		6,332,375	^(a)
New York City, NY, HDC, MFH Revenue		4.950	%		11/1/39		10,000,000		10,269,100
New York City, NY, HDC, MFH Revenue		5.150	%		11/1/45		1,630,000		1,680,302
New York State Housing Finance Agency:
Affordable Housing Revenue		4.800	%		11/1/34		4,450,000		4,759,631
Affordable Housing Revenue		4.750	%		11/1/36		1,000,000		1,010,510
Affordable Housing Revenue		5.000	%		11/1/40		4,500,000		4,588,515
Affordable Housing Revenue		4.875	%		5/1/42		2,875,000		2,912,289
Affordable Housing Revenue		5.200	%		11/1/45		2,500,000		2,559,075
New York State Housing Finance Agency Revenue		5.250	%		11/1/41		1,000,000		1,023,690
New York State Mortgage Agency Revenue, Homeowner Mortgage		5.200	%		10/1/32		1,165,000		1,175,042	^(a)

Total Housing									44,807,878

Industrial Revenue - 12.2%
Brooklyn Arena, NY, Local Development Corp., Barclays Center Project		6.250	%		7/15/40		20,000,000		22,479,000
Liberty, NY, Development Corporation Revenue, Goldman Sachs Headquarters		5.500	%		10/1/37		27,000,000		29,812,050
New York Liberty Development Corp., Liberty Revenue:
4 World Trade Center LLC Project		5.750	%		11/15/51		7,000,000		7,716,870
Second Priority, Bank of America Tower		5.125	%		1/15/44		22,500,000		23,378,400
New York State Liberty Development Corp., Liberty Revenue, 4 World Trade Center LLC Project		5.000	%		11/15/44		7,000,000		7,080,710

See Notes to Schedule of Investments.

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited) (cont’d)		June 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT		VALUE
Industrial Revenue - continued
Port Authority of New York & New Jersey, Special Obligation Revenue, JFK International Air Terminal LLC		6.000	%		12/1/42	$	20,000,000	$	22,339,000
Puerto Rico Industrial, Medical & Environmental Pollution Control Facilities, Finance Authority Revenue, American Airlines Inc.		6.450	%		12/1/25		1,710,000		1,753,879	^(b)

Total Industrial Revenue									114,559,909

Leasing - 3.8%
Hudson, NY, Yards Infrastructure Corp. Revenue		5.750	%		2/15/47		10,000,000		10,744,600
New York State Dormitory Authority Revenue, State University Educational Facilities, AGM		5.875	%		5/15/17		12,110,000		13,745,455
New York State Dormitory Authority, Lease Revenue, State University Dormitory Facilities		5.000	%		7/1/39		7,250,000		7,585,820
New York State Urban Development Corp. Revenue, State Facilities		5.700	%		4/1/20		3,000,000		3,488,790

Total Leasing									35,564,665

Local General Obligation - 3.1%
New York, NY, GO		5.000	%		8/1/23		25,000,000		28,925,500

Other - 0.4%
Build NYC Resource Corp., NY, Revenue:
YMCA of Greater New York Project		5.000	%		8/1/20		1,055,000		1,200,886
YMCA of Greater New York Project		5.000	%		8/1/21		680,000		775,329
Virgin Islands Public Finance Authority Revenue, Matching Fund Loan Note		6.000	%		10/1/39		1,750,000		1,894,340

Total Other									3,870,555

Power - 6.1%
Long Island Power Authority, NY, Electric System Revenue		6.000	%		5/1/33		10,000,000		11,346,600
New York State Energy Research & Development Authority, Gas Facilities Revenue, Brooklyn Union Gas Co. Project, RIBS		13.457	%		7/1/26		3,000,000		3,018,120	^(a)(c)(d)
Port Authority of New York & New Jersey, Special Obligation Revenue, 5th Installment, Special Project		6.750	%		10/1/19		10,785,000		10,606,293	^(a)
Puerto Rico Electric Power Authority, Power Revenue		5.250	%		7/1/40		35,000,000		32,660,600

Total Power									57,631,613

Pre-Refunded/Escrowed to Maturity - 3.8%
Madison County, NY, IDA, Civic Facilities Revenue, Colgate University Project		5.000	%		7/1/23		2,250,000		2,250,000	^(e)
MTA, New York Services Contract Transportation Facilities		5.750	%		7/1/13		180,000		180,000	^(f)
New York State Dormitory Authority Revenue, New York and Presbyterian Hospital, AGM, FHA		5.000	%		8/15/36		17,215,000		18,134,281	^(e)
New York State Dormitory Authority, State Personal Income Tax Revenue, Education		5.000	%		3/15/31		5,000		5,647	^(e)
New York State Environmental Facilities Corp., Clean Water & Drinking Revolving Funds		5.000	%		6/15/16		4,980,000		4,994,442	^(f)
Triborough Bridge & Tunnel Authority		5.375	%		1/1/19		4,200,000		4,676,952	^(e)
Triborough Bridge & Tunnel Authority, NATL/IBC		5.250	%		11/15/30		5,200,000		5,296,408	^(e)

Total Pre-Refunded/Escrowed to Maturity									35,537,730

See Notes to Schedule of Investments.

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited) (cont’d)		June 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT		VALUE
Solid Waste/Resource Recovery - 0.1%
Essex County, NY, Industrial Development Agency Revenue, Solid Waste, International Paper Co. Project		6.150	%		4/1/21	$	1,065,000	$	1,066,225	^(a)
North Country, NY, Development Authority, Solid Waste Management System Revenue, Refunding, AGM		6.000	%		5/15/15		335,000		347,318

Total Solid Waste/Resource Recovery									1,413,543

Special Tax Obligation - 21.2%
New York City, NY, TFA Revenue, Future Tax Secured		5.000	%		5/1/38		25,000,000		26,756,250
New York City, NY, TFA, Building Aid Revenue, St. Aid Withholding		5.250	%		1/15/39		27,000,000		28,427,220
New York State Dormitory Authority, State Personal Income Tax Revenue		5.000	%		12/15/35		3,500,000		3,626,525
New York State Dormitory Authority, State Personal Income Tax Revenue		5.000	%		3/15/37		4,000,000		4,227,520
New York State Dormitory Authority, State Personal Income Tax Revenue		5.000	%		2/15/39		15,875,000		16,895,763
New York State Dormitory Authority, State Personal Income Tax Revenue:
Education		5.000	%		3/15/31		9,995,000		10,981,706
General Purpose Bonds		5.000	%		12/15/26		23,700,000		26,681,223
New York State Local Assistance Corp.:
Refunded		6.000	%		4/1/14		770,000		803,087
Refunded		5.500	%		4/1/17		3,000,000		3,356,430
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		5.750	%		8/1/37		10,000,000		10,246,400
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		5.000	%		8/1/40		10,000,000		10,039,200
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		5.250	%		8/1/40		10,000,000		10,204,000
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		5.250	%		8/1/41		1,965,000		1,919,785
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		5.500	%		8/1/42		7,500,000		7,532,475
Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue		6.000	%		8/1/42		20,000,000		20,855,400
Virgin Islands Public Finance Authority Revenue:
Matching Fund Loan		5.250	%		10/1/29		10,000,000		10,688,000
Matching Fund Loan		6.750	%		10/1/37		5,000,000		5,486,350

Total Special Tax Obligation									198,727,334

State General Obligation - 0.1%
Puerto Rico Commonwealth, GO, Refunding, Public Improvement, NATL		5.500	%		7/1/16		1,250,000		1,294,562

Transportation - 6.9%
MTA, New York Revenue, NATL		5.000	%		11/15/35		10,000,000		10,211,900
MTA, NY, Revenue		5.250	%		11/15/40		20,000,000		20,689,600
New York City, NY, Industrial Development Agency, Airport Facilities Revenue		5.000	%		7/1/18		5,000,000		5,282,250	^(a)
New York City, NY, Industrial Development Agency, Airport Facilities Revenue		5.000	%		7/1/19		3,000,000		3,158,490	^(a)
Port Authority of New York & New Jersey		5.000	%		1/15/41		15,000,000		15,857,250
Triborough Bridge & Tunnel Authority, NY, Revenue		5.000	%		11/15/29		4,675,000		5,125,662
Triborough Bridge & Tunnel Authority, NY, Revenue		5.000	%		11/15/30		3,795,000		4,162,097

Total Transportation									64,487,249

See Notes to Schedule of Investments.

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited) (cont’d)		June 30, 2013


SECURITY	RATE			MATURITY DATE		FACE AMOUNT		VALUE
Water & Sewer - 6.2%
New York City, NY, Municipal Water Finance Authority:
Water & Sewer System Revenue		5.000	%		6/15/38	$	10,000,000	$	10,436,100
Water & Sewer System Revenue		5.000	%		6/15/39		7,000,000		7,265,860
Water & Sewer System Revenue		5.750	%		6/15/40		15,000,000		16,315,350
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue		5.000	%		6/15/45		5,000,000		5,216,850
New York State Environmental Facilities Corp., Clean Water & Drinking Revolving Funds		5.000	%		6/15/32		8,500,000		8,523,630
New York State Environmental Facilities Corp., Water Facilities Revenue, United Water New Rochelle Inc.		4.875	%		9/1/40		10,910,000		10,971,532

Total Water & Sewer									58,729,322

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $875,195,515)									922,003,383

SHORT-TERM INVESTMENTS - 0.5%
Finance - 0.5%
New York City, NY, TFA Revenue, New York City Recovery Project Revenue, Subordinated, LIQ-Dexia Credit Local (Cost - $4,700,000)		0.400	%		11/1/22		4,700,000		4,700,000	^(g)(h)

TOTAL INVESTMENTS - 98.6% (Cost - $879,895,515#)									926,703,383
Other Assets in Excess of Liabilities - 1.4%									12,864,985

TOTAL NET ASSETS - 100.0%								$	939,568,368

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

(b)	The coupon payment on these securities is currently in default as of June 30, 2013.

(c)	Variable rate security. Interest rate disclosed is as of the most recent information available.

(d)	Residual interest bonds — coupon varies inversely with level of short-term tax-exempt interest rates.

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

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

(g)	Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer or liquidity provider on no more than 7 days notice.

(h)	Maturity date shown is the final maturity date. The security may be sold back to the issuer before final maturity.

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

Abbreviations used in this schedule:


AGM		— Assured Guaranty Municipal Corporation - Insured Bonds
AMBAC		— American Municipal Bond Assurance Corporation - Insured Bonds
FGIC		— Financial Guaranty Insurance Company - Insured Bonds
FHA		— Federal Housing Administration
GNMA		— Government National Mortgage Association
GO		— General Obligation
HDC		— Housing Development Corporation
IBC		— Insured Bond Certificates
IDA		— Industrial Development Authority
LIQ		— Liquidity Facility
MFH		— Multi-Family Housing
MTA		— Metropolitan Transportation Authority
NATL		— National Public Finance Guarantee Corporation - Insured Bonds
RIBS		— Residual Interest Bonds
TCRS		— Transferable Custodial Receipts
TFA		— Transitional Finance Authority

See Notes to Schedule of Investments.

WESTERN ASSET NEW YORK MUNICIPALS FUND


Schedule of investments (unaudited) (cont’d)		June 30, 2013


Ratings Table*

Standard & Poor’s/Moody’s/Fitch**
AAA/Aaa	12.6	%
AA/Aa	40.8
A	30.3
BBB/Baa	13.9
A-1/VMIG 1	0.5
NR	1.9

	100.0	%

*	As a percentage of total investments.

The ratings shown are based on each portfolio security’s rating as determined by Standard & Poor’s, Moody’s or Fitch, each a Nationally Recognized Statistical Rating Organization (“NRSRO”). These ratings are the opinions of the NRSRO and are not measures of quality or guarantees of performance. Securities may be rated by other NRSROs, and these ratings may be higher or lower. In the event that a security is rated by multiple NRSROs and receives different ratings, the Fund will treat the security as being rated in the highest rating category received from a NRSRO.

See Notes to Schedule of Investments.

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

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

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

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

Notes to Schedule of Investments (unaudited) (continued)

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

•

Level 1 – quoted prices in active markets for identical investments

•

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

•

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

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

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


ASSETS
DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Municipal bonds†		—	$	922,003,383		—	$	922,003,383
Short-term investments†		—		4,700,000		—		4,700,000

Total investments		—	$	926,703,383		—	$	926,703,383

†	See Schedule of Investments for additional detailed categorizations.

(b) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the “initial margin” and subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract.

Futures contracts involve, to varying degrees, risk of loss. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

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

(d)

Security transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At June 30, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:


Gross unrealized appreciation	$	57,752,155
Gross unrealized depreciation		(10,944,287	)

Net unrealized appreciation	$	46,807,868

3. Derivative instruments and hedging activities

GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.

Notes to Schedule of Investments (unaudited) (continued)

At June 30, 2013, the Fund did not have any derivative instruments outstanding.

During the period ended June 30, 2013, the volume of derivative activity for the Fund was as follows:


	Average Market Value
Futures contracts (to sell) †	$	26,426,250

†	At June 30, 2013, there were no open positions held in this derivative.

ITEM 2.

CONTROLS AND PROCEDURES.

(a)

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

(b)

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

ITEM 3.

EXHIBITS.

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Legg Mason Partners Income Trust

By		/s/ K ENNETH D. F ULLER
		Kenneth D. Fuller
		Chief Executive Officer

Date: August 26, 2013

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/ K ENNETH D. F ULLER
		Kenneth D. Fuller
		Chief Executive Officer

Date: August 26, 2013

By		/s/ R ICHARD F. S ENNETT
		Richard F. Sennett
		Principal Financial Officer

Date: August 26, 2013