John Hancock

California Tax-Free Income Fund

Semiannual report 11/30/14

A message to shareholders

Dear fellow shareholder,

Robust economic growth in the United States continues to set the standard globally. Unemployment has ratcheted down to pre-recession levels, consumer confidence and spending are rising, and inflation remains low. Bond markets have turned in positive performance against this backdrop as investors pursue yield where they can find it. Despite a 30-year bull market in bonds, many U.S. bond yields look compelling when compared with other developed markets around the world.

The coming year may likely present greater challenges for bond investors, however. The U.S. Federal Reserve (Fed) has signaled its intention to be patient in beginning to raise short-term interest rates. Once the Fed does raise the rates, it may have an adverse affect on many fixed-income portfolios, particularly those that invest in less-liquid markets. At John Hancock Investments, we are closely monitoring our fixed-income portfolios and communicating regularly with their portfolio managers about these issues. Now may also be a good time for you to discuss your fixed-income strategy with your financial advisor to determine if your portfolio continues to match your long-term goals.

A new look

I am pleased to introduce you to our redesigned shareholder reports. As part of an effort to elevate the educational substance in our communications, we undertook an initiative to make our reports more engaging and easier to navigate. Included in the changes are a performance snapshot that shows your fund's performance against that of its benchmark, and a Q&A with your fund's lead portfolio manager. We hope these enhancements give you better insight into your fund's activity and performance.

On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to thank you for the continued trust you've placed in us and wish you a happy and healthy 2015.

Sincerely,

Andrew G. Arnott
President and Chief Executive Officer
John Hancock Investments

This commentary reflects the CEO's views as of November 30, 2014. They are subject to change at any time. For more up-to-date information, you can visit our website at jhinvestments.com.

John Hancock
California Tax-Free Income Fund

Table of contents

2 Your fund at a glance

4 Discussion of fund performance

8 A look at performance

10 Your expenses

12 Fund's investments

18 Financial statements

22 Financial highlights

25 Notes to financial statements

30 Continuation of investment advisory and subadvisory agreements

36 More information

Your fund at a glance

INVESTMENT OBJECTIVE

The fund seeks a high level of current income, consistent with preservation of capital, that is exempt from federal and California personal income taxes.

AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/14(%)

The Barclays California Municipal Bond Index is an unmanaged index comprising California investment-grade municipal bonds. It is not possible to invest directly in an index.

Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.

PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS

Municipal bonds advanced

Favorable supply-and-demand conditions and a lack of inflationary pressure contributed to positive returns in the municipal bond market, and California municipal bonds fared even better.

Longer duration helped

The fund's longer duration (i.e., greater interest-rate sensitivity) versus its benchmark added value as muni yields declined.

Factors affecting performance

Higher credit exposure and favorable security selection contributed positively to performance, while the fund's modest exposure to Puerto Rico detracted from results.

PORTFOLIO COMPOSITION AS OF 11/30/14 (%)

A note about risks

Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest or settlement payments. Investments in higher-yielding, lower-rated securities include a higher risk of default. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. The fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. If the fund invests heavily in any one state or region, performance could be disproportionately affected by factors particular to that state or region. Events in the financial markets have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign. In addition, reduced liquidity in credit and fixed-income markets may adversely affect issuers worldwide. Certain market conditions, including reduced trading volume, heightened volatility, or rising interest rates, may impair liquidity, the ability of the fund to sell securities or close derivative positions at advantageous prices. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. Sector investing is subject to greater risks than the market as a whole. Because the fund may focus on particular sectors of the economy, its performance may depend on the performance of those sectors and investments focused in one sector may fluctuate more widely than investments diversified across sectors. Please see the fund's prospectus for additional risks.

Discussion of fund performance

An interview with Portfolio Manager Dianne M. Sales, CFA, John Hancock Asset Management, a division of Manulife Asset Management (US) LLC

Dianne M. Sales, CFA
Portfolio Manager
John Hancock Asset Management

What factors contributed to the positive returns in the municipal bond market over the past six months?

Supply and demand in the municipal bond market aided performance during the six-month period. Through November 30, 2014, new municipal bond issuance year to date was 4% lower than for the same period in 2013. Moreover, a meaningful portion of the new issues in the muni market, especially during the last half of the six-month period, was used to refinance existing securities, which does not materially increase the volume of outstanding municipal bonds. On the other side of the equation, investor demand picked up, resulting in steadily positive inflows into the municipal bond market. This stood in contrast to 2013, when investment dollars flowed out of the muni market.

The favorable supply-and-demand backdrop helped tax-exempt municipal bonds outperform the broad taxable bond market. As a point of reference, the Barclays Municipal Bond Index returned 2.45% for the six-month period, while the Barclays U.S. Aggregate Bond Index, a broad taxable bond market measure, returned 1.92%. California municipal bonds outperformed as the Barclays California Municipal Bond Index returned 2.67%.

How did the economic environment affect the muni market?

Economic conditions were supportive for bonds in general. Inflation in the United States remained well below its long-term historical average, in part because of declining energy prices and slowing economic growth elsewhere in the world, particularly in Europe and China. But we are also seeing little evidence of domestic wage pressure, despite stronger job numbers and a lower unemployment rate. The lack of inflationary pressure enabled bond yields to trend lower during the six-month period, leading to higher bond prices.

Munis also benefited from stronger economic data in the United States, which typically boosts state and local tax revenues, aids publicly funded development projects, and strengthens municipal credit quality.

Speaking of which, did any municipal credit concerns develop in California over the last six months?

California credit quality continued to improve during the period as a robust economy helped drive strong growth in state tax revenues. Given the severity of the state's fiscal problems in the wake of the 2008 credit crisis, California has made remarkable progress in turning things around. A combination of spending cuts, tax increases, and a recovering economy helped the state balance its annual budget after years of sizable deficits. Employment in the state has rebounded to its prior peak level, before the credit crisis, and voters recently approved a measure to strengthen the funding requirements for the state's rainy-day reserve fund. The state still faces a number of challenges, most notably unfunded pension and healthcare liabilities for state employees. But California's significant progress to date has resulted in several credit rating upgrades for state debt, the most recent occurring in November after voter approval of the rainy-day funding.

Looking at the portfolio, what contributed positively to the fund's performance versus its benchmark, the Barclays California Municipal Bond Index?

Credit selection added value during the reporting period. The credit rating upgrades for California state debt provided a lift to the fund's general obligation bonds and other securities backed directly by the state. The fund's higher-yielding holdings, including BBB-rated special tax bonds that finance redevelopment projects, benefited from continued investor demand for yield. The fund also benefited from prerefundings on a number of its bonds, including transportation-related bonds and tobacco settlement bonds.

QUALITY COMPOSITION AS OF 11/30/14 (%)

What does prerefunding mean and can you give an example?

Municipal bond issuers often take advantage of low interest rates to refinance an existing bond, much like a homeowner refinancing a mortgage. However, the existing bond can only be retired on a predetermined call date, which could be months or years away. So, the municipal entity issues a new bond and invests the proceeds in U.S. Treasury securities until the call date arrives, at which point the proceeds are used to pay off the existing bond. This process often results in a credit rating upgrade for the prerefunded securities, equivalent to that of the U.S. Treasury securities in which the proceeds are invested.

One of the fund's largest holdings during the reporting period were revenue bonds issued by the City of Santa Ana to finance police facilities. These bonds were partially prerefunded, and the resulting improvement in credit rating boosted returns. Furthermore, because the bonds do not have a call date, the fund will continue to enjoy the benefits of the improved ratings until final maturity. The fund's holdings of bonds issued by the San Joaquin Hills Transportation Corridor Agency were also prerefunded, resulting in a rating upgrade from BB to AAA.

What detracted from results versus the benchmark over the last six months?

The fund's small position in bonds issued by the Commonwealth of Puerto Rico, which are not represented in the benchmark, had a modestly negative impact on relative performance. Puerto Rico has been struggling with a persistent economic downturn, and its debt was downgraded during the reporting period. The fund's Puerto Rico bond holdings made up 1.1% of net assets at the end of the period, down from 2.9% at the beginning of the reporting period. These securities are tied to a dedicated revenue stream rather than general fund collections.

TOP 10 HOLDINGS AS OF 11/30/14 (%)

Golden State Tobacco Securitization Corp., Series A, 5.000%, 6-1-35 3.8

Inland Valley Development Agency, Series A, 5.000%, 9-1-44 3.1

San Francisco City & County Airports Comm-San Francisco International Airport, Series B, 5.000%, 5-1-44 2.5

Santa Ana Financing Authority, Prerefunded, Police Administration Holding, 6.250%, 7-1-24 2.4

Santa Ana Financing Authority, Unrefunded, Police Administration Holding, 6.250%, 7-1-24 2.4

State of California, 6.500%, 4-1-33 2.3

San Joaquin Hills Transportation Corridor Agency, Highway Revenue Tolls, Escrowed to Maturity, zero coupon bond, 1-1-22 2.1

Foothill-Eastern Transportation Corridor Agency, Series A, 5.750%, 1-15-46 2.1

State of California, 5.000%, 4-1-43 2.1

California State Public Works Board, Department of Corrections, Series A, 5.000%, 12-1-19 2.1

Total 24.9

As a percentage of net assets.

Cash and cash equivalents are not included.

Are there any noteworthy themes in the municipal bond market?

In recent years, the federal budget deficit has prompted some proposals to limit the tax exemption that municipal bond interest payments have enjoyed since the passage of the Revenue Act of 1913. In 2014, there were proposals from both Congress and the White House recommending a cap on the municipal bond interest tax deduction for higher-income investors.

As a result of the November midterm elections, Republicans will control both houses of Congress starting in January 2015. Given the potential for conflicting priorities between Congress and the president, we anticipate that near-term changes to the municipal bond interest tax deduction are unlikely.

MANAGED BY

Dianne M. Sales, CFA
On the fund since 1995
Investing since 1984

The views expressed in this report are exclusively those of Dianne M. Sales, CFA, John Hancock Asset Management, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

A look at performance

TOTAL RETURNS FOR THE PERIOD ENDED NOVEMBER 30, 2014

Average annual
total returns (%)
with maximum sales charge Cumulative
total returns (%)
with maximum sales charge SEC
30-day
yield (%)
subsidized SEC
30-day
yield (%)
unsubsidized¹ Tax-
equivalent
subsidized
yield (%)²

1-year 5-year 10-year 6-month 5-year 10-year as of
11-30-14 as of
11-30-14 as of
11-30-14

Class A 6.45 5.65 4.37 -1.12 31.62 53.35 2.10 2.10 4.28

Class B 5.13 5.38 4.11 -2.26 29.98 49.55 1.43 1.32 2.91

Class C 9.03 5.69 3.94 1.65 31.86 47.20 1.43 1.33 2.91

Index 1^† 9.32 6.17 5.12 2.67 34.93 64.73 — — —

Index 2^† 8.23 5.12 4.81 2.45 28.39 59.99 — — —

Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 4.0% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 4.0%, effective 2-3-14. The Class B shares' CDSC declines annually between years 1 to 6 according to the following schedule: 5%, 4%, 3%, 3%, 2%, 1%. No sales charge will be assessed after the sixth year. Class C shares sold within one year of purchase are subject to a 1% CDSC.

The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Had the fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:

Class A Class B Class C

Gross (%) 0.86 1.71 1.71

Net (%) 0.86 1.61 1.61

Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.

The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, the fund's current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800-225-5291 or visit the fund's website at jhinvestments.com.

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund's performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.

†	Index 1 is the Barclays California Municipal Bond Index; Index 2 is the Barclays Municipal Bond Index.

See the following page for footnotes.

This chart and table show what happened to a hypothetical $10,000 investment in John Hancock California Tax-Free Income Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in two separate indexes.

Start date With maximum
sales charge ($) Without
sales charge ($) Index 1 ($) Index 2 ($)

Class B³ 11-30-04 14,955 14,955 16,473 15,999

Class C³ 11-30-04 14,720 14,720 16,473 15,999

The values shown in the chart for Class A shares with maximum sales charge have been adjusted to reflect the reduction in the Class A shares' maximum sales charge from 4.5% to 4.0%, which became effective on 2-3-14.

Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

The Barclays California Municipal Bond Index is an unmanaged index composed of California investment-grade municipal bonds.

The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would have resulted in lower values.

Footnotes related to performance pages

1	Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers.
2	Tax-equivalent yield is based on the maximum federal income tax rate of 43.4% and a state tax rate of 13.3%.
3	The contingent deferred sales charge is not applicable.

Your expenses

These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.

Understanding fund expenses

As a shareholder of the fund, you incur two types of costs:

•	Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.
•	Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses.

We are presenting only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on June 1, 2014, with the same investment held until November 30, 2014.

Account value
on 6-1-2014 Ending value
on 11-30-2014 Expenses paid
during period
ended 11-30-2014¹ Annualized
expense ratio

Class A $1,000.00 $1,030.30 $4.28 0.84%

Class B 1,000.00 1,027.40 8.08 1.59%

Class C 1,000.00 1,026.50 8.08 1.59%

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at November 30, 2014, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Hypothetical example for comparison purposes

This table allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on June 1, 2014, with the same investment held until November 30, 2014. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

Account value
on 6-1-2014 Ending value
on 11-30-2014 Expenses paid
during period
ended 11-30-2014¹ Annualized
expense ratio

Class A $1,000.00 $1,020.90 $4.26 0.84%

Class B 1,000.00 1,017.10 8.04 1.59%

Class C 1,000.00 1,017.10 8.04 1.59%

Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.

1	Expenses are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

Fund's investments

As of 11-30-14 (unaudited)

Rate (%) Maturity date Par value Value

Municipal bonds 96.5% $259,672,513

(Cost $236,288,511)

California 95.4% 256,761,973

ABAG Finance Authority for Nonprofit Corps.
Institute on Aging (D) 5.650 08-15-38 1,000,000 1,097,150

ABAG Finance Authority for Nonprofit Corps.
Sharp Healthcare 6.250 08-01-39 1,000,000 1,174,090

ABAG Finance Authority for Nonprofit Corps.
Sharp HealthCare, Series A 5.000 08-01-43 2,000,000 2,233,800

Anaheim Certificates of Participation
Convention Center (D) (P) (S) 11.899 07-16-23 1,800,000 1,803,366

Anaheim Public Financing Authority
Public Improvement Project, Series C (D) (Z) 1.199 09-01-18 3,000,000 2,866,920

Anaheim Public Financing Authority
Series A 5.000 05-01-46 1,000,000 1,092,560

Belmont Community Facilities
Library Project, Series A (D) 5.750 08-01-24 1,000,000 1,260,230

California County Tobacco Securitization Agency 5.000 06-01-40 1,500,000 1,607,850

California County Tobacco Securitization Agency
Fresno County Funding Corp. 6.000 06-01-35 1,765,000 1,764,841

California County Tobacco Securitization Agency
Kern County Corp., Series A 6.125 06-01-43 5,000,000 5,002,446

California County Tobacco Securitization Agency
Public Improvements 5.250 06-01-21 3,425,000 3,425,241

California County Tobacco Securitization Agency
Stanislaus Funding, Series A 5.500 06-01-33 515,000 506,317

California Educational Facilities Authority
Prerefunded College and University Funding Program 5.000 02-01-26 1,130,000 1,240,661

California Educational Facilities Authority
Woodbury University 5.000 01-01-25 1,800,000 1,807,686

California Health Facilities Financing Authority
Kaiser Permanente, Series A 5.250 04-01-39 2,500,000 2,604,250

California Health Facilities Financing Authority
Lucile Salter Packard ChildrenLucile Salter Packard Children 5.000 08-15-43 1,000,000 1,126,080

California Health Facilities Financing Authority
Providence Health and Services, Series C 6.500 10-01-33 1,000,000 1,215,830

California Health Facilities Financing Authority
Scripps Health, Series A 5.000 11-15-36 1,000,000 1,121,710

California Infrastructure & Economic Development Bank
California Independent System Operator, Series A 6.250 02-01-39 2,000,000 2,021,400

12SEE NOTES TO FINANCIAL STATEMENTS

California Pollution Control Financing Authority
Waste Management Inc., Series C, AMT (P) 5.125 11-01-23 2,000,000 $2,083,500

California State Public Works Board
Department of Corrections, Series A (D) 5.000 12-01-19 5,000,000 5,520,300

California State Public Works Board
Series A 5.000 09-01-39 2,500,000 2,825,250

California State Public Works Board
Trustees California State University, Series D 6.250 04-01-34 2,000,000 2,401,580

California State Public Works Board
Various Capital Projects, Series A 5.000 04-01-37 1,000,000 1,128,060

California State University
College and University Revenue, Series A 5.000 11-01-44 2,000,000 2,285,720

California State University
College and University Revenue, Series A 5.250 11-01-34 1,000,000 1,141,080

California Statewide Communities Development Authority
American Baptist Homes West 6.250 10-01-39 2,000,000 2,272,440

California Statewide Communities Development Authority
Insured-Los Angeles Jewish Homes, Series S (D) 5.000 08-01-44 2,250,000 2,519,528

California Statewide Communities Development Authority
Insured-Redwoods Project (D) 5.375 11-15-44 1,500,000 1,692,000

California Statewide Communities Development Authority
Senior Living of Southern California (S) 7.250 11-15-41 1,700,000 2,033,489

California Statewide Communities Development Authority
University of California - Irvine 5.750 05-15-32 1,230,000 1,354,353

California Statewide Financing Authority
Tobacco Settlement, Series A 6.000 05-01-37 2,500,000 2,499,775

California Statewide Financing Authority
Tobacco Settlement, Series B 6.000 05-01-37 4,000,000 3,999,640

Center Unified School District, Series C (D)(Z) 0.928 09-01-16 2,145,000 2,110,015

City of Irvine CA
Community Facilities District 5.000 09-01-49 2,000,000 2,212,960

City of La Verne CA
Brethren Hillcrest Homes 5.000 05-15-36 750,000 800,048

City of San Mateo
Community Facilities District 5.500 09-01-44 2,000,000 2,232,180

Cloverdale Community Development Agency 5.500 09-01-38 3,000,000 2,635,500

Contra Costa County Public Financing Authority, Series A (D) 5.000 06-01-28 1,230,000 1,234,649

East Side Union High School District-Santa Clara County (D) 5.250 09-01-24 2,500,000 3,123,850

Folsom Public Financing Authority, Series B 5.125 09-01-26 965,000 998,669

SEE NOTES TO FINANCIAL STATEMENTS13

Foothill-Eastern Transportation Corridor Agency, Series A 5.750 01-15-46 5,000,000 $5,737,700

Fresno Sewer System Revenue, Series A-1 (D) 5.250 09-01-19 1,000,000 1,094,010

Golden State Tobacco Securitization Corp., Series A (D) 5.000 06-01-35 10,000,000 10,236,500

Inland Valley Development Agency
Series A 5.000 09-01-44 7,500,000 8,245,650

Kern County, Capital Improvements Project, Series A (D) 5.750 08-01-35 1,000,000 1,147,280

Laguna Salada Union School District, Series C (D)(Z) 3.442 08-01-26 1,000,000 669,930

Lancaster School District
School Improvements (D) (Z) 1.302 04-01-19 1,730,000 1,634,314

Lancaster School District
School Improvements (D) (Z) 1.955 04-01-22 1,380,000 1,194,832

Long Beach Harbor Revenue, Series A, AMT (D) 6.000 05-15-18 2,660,000 3,100,443

Long Beach Special Tax Community Facilities
District 6-Pike Project 6.250 10-01-26 2,480,000 2,484,067

Los Angeles Community College District
2008 Election, Series A 6.000 08-01-33 4,000,000 4,809,680

Los Angeles Community Facilities District No: 3
Cascades Business Park 6.400 09-01-22 555,000 559,601

Los Angeles County Redevelopment Authority
LA Bunker Hill Project, Series C (D) 5.000 12-01-28 2,590,000 3,013,077

Los Angeles County Regional Financing Authority
Montecedro Incorporated Project, Series A (D) 5.000 11-15-44 1,355,000 1,484,335

Los Angeles Department of Water & Power
Power Systems, Series D 5.000 07-01-44 1,000,000 1,137,010

M-S-R Energy Authority
Natural Gas Revenue, Series A 6.500 11-01-39 1,000,000 1,355,150

M-S-R Energy Authority
Natural Gas Revenue, Series B 6.500 11-01-39 3,500,000 4,743,025

Morgan Hill Redevelopment Agency Successor Agency
Series A 5.000 09-01-33 1,750,000 1,984,570

Oakland Unified School District/Alameda County 6.625 08-01-38 1,000,000 1,234,790

Orange County Improvement Bond Act 1915, Series B 5.750 09-02-33 1,365,000 1,372,617

Paramount Unified School District, Series B (D)(Z) 3.467 09-01-25 4,735,000 3,264,498

Pasadena California Certificates Participation Refunding Old Pasadena Parking Facility Project 6.250 01-01-18 430,000 464,340

Port of Los Angeles
Series A AMT 5.000 08-01-44 2,000,000 2,239,100

Ripon Redevelopment Agency
Ripon Community Redevelopment Project (D) 4.750 11-01-36 1,515,000 1,534,331

Riverside County Transportation Commission, Series A 5.750 06-01-48 1,000,000 1,136,270

San Bernardino County
Capital Facilities Project, Escrowed to Maturity, Series B 6.875 08-01-24 350,000 468,524

14SEE NOTES TO FINANCIAL STATEMENTS

San Bernardino County
Medical Center Financing Project, Series B (D) 5.500 08-01-17 3,740,000 $3,976,667

San Bruno Park School District
School Improvements, Series B (D) (Z) 2.450 08-01-21 1,015,000 861,644

San Diego County Regional Airport Authority, Series A 5.000 07-01-44 4,925,000 5,488,371

San Diego County Regional Transportation Commission
Sales and Use Tax, Series A 5.000 04-01-44 3,000,000 3,451,230

San Diego Public Facilities Financing Authority
Lease Revenue 5.250 03-01-40 1,000,000 1,099,610

San Diego Redevelopment Agency
City Heights, Series A 5.750 09-01-23 1,000,000 1,001,620

San Diego Redevelopment Agency
City Heights, Series A 5.800 09-01-28 1,395,000 1,396,883

San Diego Redevelopment Agency
Public Improvements, Series B (Z) 4.326 09-01-17 1,600,000 1,421,440

San Diego Redevelopment Agency
Public Improvements, Series B (Z) 4.906 09-01-18 1,700,000 1,416,559

San Diego Unified School District, Election of 1998, Series A (D)(Z) 2.297 07-01-21 2,500,000 2,148,125

San Francisco City & County Airports Comm-San Francisco International Airport
Series B 5.000 05-01-44 5,890,000 6,629,195

San Francisco City & County Redevelopment Agency
Department of General Services Lease, No. 6, Mission Bay South, Series A 5.150 08-01-35 1,250,000 1,263,438

San Francisco City & County Redevelopment Agency
Mission Bay South Redevelopment, Series D 7.000 08-01-41 1,000,000 1,218,850

San Francisco City & County Redevelopment Financing Authority
Mission Bay South Redevelopment, Series D 6.625 08-01-39 1,000,000 1,159,340

San Francisco City & County Redevelopment Financing Authority
San Francisco Redevelopment Projects, Series B 6.625 08-01-39 700,000 814,863

San Joaquin County
County Administration Building (D) 5.000 11-15-29 2,965,000 3,118,172

San Joaquin Hills Transportation Corridor Agency
Highway Revenue Tolls, Escrowed to Maturity (Z) 1.733 01-01-22 6,500,000 5,744,440

San Joaquin Hills Transportation Corridor Agency
Highway Revenue Tolls, Series A 5.750 01-15-21 2,000,000 2,031,980

San Joaquin Hills Transportation Corridor Agency
Series A 5.000 01-15-44 2,500,000 2,684,875

San Mateo County Joint Power Authority (D) 5.000 07-01-21 1,815,000 2,124,058

Santa Ana Financing Authority
Prerefunded, Police Administration Holding (D) 6.250 07-01-19 895,000 1,090,942

Santa Ana Financing Authority
Prerefunded, Police Administration Holding (D) 6.250 07-01-24 5,000,000 6,383,150

SEE NOTES TO FINANCIAL STATEMENTS15

Santa Ana Financing Authority
Unrefunded, Police Administration Holding (D) 6.250 07-01-19 895,000 $1,073,687

Santa Ana Financing Authority
Unrefunded, Police Administration Holding (D) 6.250 07-01-24 5,000,000 6,325,100

Santa Fe Springs Community Development Commission
Construction Redevelopment Project, Series A (D) (Z) 2.467 09-01-20 1,275,000 1,105,859

Santa Margarita Water District
Community Facilities District 5.625 09-01-43 775,000 864,195

South Orange County Public Financing Authority
Series A 5.000 08-15-33 1,000,000 1,130,590

South Orange County Public Financing Authority
Series A 5.000 08-15-34 450,000 506,426

Southern California Public Power Authority
Natural Gas Revenue, Series A 5.250 11-01-26 2,000,000 2,360,200

Southern California Public Power Authority
Series A 5.000 07-01-38 1,000,000 1,151,200

State of California 5.000 09-01-41 1,500,000 1,668,630

State of California 5.000 10-01-41 2,000,000 2,227,340

State of California 5.000 04-01-43 5,000,000 5,607,450

State of California 5.000 11-01-43 2,000,000 2,257,640

State of California 5.250 03-01-30 2,000,000 2,320,680

State of California 6.500 04-01-33 5,000,000 6,103,450

Stockton Public Financing Authority
Delta Water Supply Project, Series A 6.250 10-01-40 1,150,000 1,351,331

Successor Agency To The San Francisco City & County Redevelopment Agency
Mission Bay Project, Series A 5.000 08-01-43 1,000,000 1,100,590

Torrance Hospital Revenue
Torrance Memorial Medical Center, Series A 5.500 06-01-31 2,000,000 2,004,740

Tuolumne Wind Project Authority
Tuolumne County Project, Series A 5.625 01-01-29 1,000,000 1,162,230

University of California 5.000 05-15-44 4,000,000 4,548,840

Vallejo Sanitation & Flood Control District (D) 5.000 07-01-19 1,303,000 1,393,845

West Covina Redevelopment Agency
Fashion Plaza 6.000 09-01-22 3,000,000 3,549,840

Puerto Rico 1.1% 2,910,540

Puerto Rico Highway & Transportation Authority
Fuel Sales Tax Revenue, Series A (D) 5.000 07-01-38 80,000 76,890

Puerto Rico Industrial Tourist Education Medical & Environment Authority
Hospital de la Concepcion 6.500 11-15-20 500,000 511,950

Puerto Rico Sales Tax Financing Corp.
Sales Tax Revenue, Series A (0.000% steps up to 6.750% on 8-1-16) (Z) 1.860 08-01-32 3,000,000 2,321,700

16SEE NOTES TO FINANCIAL STATEMENTS

Par value Value

Short-term investments 0.7% $1,780,000

(Cost $1,780,000)

Repurchase agreement 0.7%

Barclays Tri-Party Repurchase Agreement dated 11-28-14 at 0.060% to be repurchased at $1,780,009 on 12-1-14, collateralized by $1,670,100 U.S. Treasury Inflation Indexed Notes, 0.125% due 4-15-16 (valued at $1,815,698, including interest) 1,780,000 1,780,000

Total investments (Cost $238,068,511)† 97.2% $261,452,513

Other assets and liabilities, net 2.8% $7,514,247

Total net assets 100.0% $268,966,760

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.

AMT Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax.

(D) Bond is insured by one or more of these companies:

Insurance Coverage As a % of total
Investments

National Public Finance Guarantee Corp. 6.4%

Ambac Financial Group, Inc. 3.7%

ACA Financial Guaranty Corp. 2.2%

Total 12.3%

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration.

(Z) Zero coupon bonds are issued at a discount from their principal amount in lieu of paying interest periodically. Rate shown is the effective yield at period end.

† At 11-30-14, the aggregate cost of investment securities for federal income tax purposes was $236,211,345. Net unrealized appreciation aggregated $25,241,168, of which $25,495,414 related to appreciated investment securities and $254,246 related to depreciated investment securities.

SEE NOTES TO FINANCIAL STATEMENTS17

Financial statements

STATEMENT OF ASSETS AND LIABILITIES 11-30-14 (unaudited)

Assets

Investments, at value (Cost $238,068,511) $261,452,513

Cash 87,886

Receivable for fund shares sold 5,199,119

Interest receivable 3,007,831

Other receivables and prepaid expenses 11,975

Total assets 269,759,324

Liabilities

Payable for fund shares repurchased 375,771

Distributions payable 168,278

Payable to affiliates

Accounting and legal services fees 9,151

Transfer agent fees 22,390

Distribution and service fees 28,172

Trustees' fees 623

Investment management fees 119,353

Other liabilities and accrued expenses 68,826

Total liabilities 792,564

Net assets $268,966,760

Net assets consist of

Paid-in capital $248,290,265

Undistributed net investment income 391,950

Accumulated net realized gain (loss) on investments (3,099,457 )

Net unrealized appreciation (depreciation) on investments 23,384,002

Net assets $268,966,760

18SEE NOTES TO FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES (continued)

Net asset value per share

Based on net asset values and shares outstanding-the fund has an unlimited number of shares authorized with no par value

Class A ($233,421,223 ÷ 21,096,273 shares)¹ $11.06

Class B ($2,055,582 ÷ 185,702 shares)¹ $11.07

Class C ($33,489,955 ÷ 3,026,723 shares)¹ $11.06

Maximum offering price per share

Class A (net asset value per share ÷ 96%)² $11.52

1 Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

2 On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.

SEE NOTES TO FINANCIAL STATEMENTS19

STATEMENT OF OPERATIONS For the six months ended 11-30-14 (unaudited)

Investment income

Interest $6,068,866

Expenses

Investment management fees 701,883

Distribution and service fees 338,280

Accounting and legal services fees 22,460

Transfer agent fees 72,701

Trustees' fees 1,470

State registration fees 8,924

Printing and postage 6,648

Professional fees 34,908

Custodian fees 17,611

Registration and filing fees 16,137

Other 4,197

Total expenses 1,225,219

Less expense reductions (26,552 )

Net expenses 1,198,667

Net investment income 4,870,199

Realized and unrealized gain (loss)

Net realized gain (loss) on

Investments 256,646

256,646

Change in net unrealized appreciation (depreciation) of

Investments 2,591,785

2,591,785

Net realized and unrealized gain 2,848,431

Increase in net assets from operations $7,718,630

20SEE NOTES TO FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS

Six months ended 11-30-14 Year ended 5-31-14

(unaudited)

Increase (decrease) in net assets

From operations

Net investment income $4,870,199 $10,524,971

Net realized gain (loss) 256,646 (4,118,059 )

Change in net unrealized appreciation (depreciation) 2,591,785 160,500

Increase in net assets resulting from operations 7,718,630 6,567,412

Distributions to shareholders

From net investment income

Class A (4,383,592 ) (9,357,225 )

Class B (33,880 ) (76,785 )

Class C (523,667 ) (1,111,796 )

Total distributions (4,941,139 ) (10,545,806 )

From fund share transactions 19,177,885 (25,251,629 )

Total increase (decrease) 21,955,376 (29,230,023 )

Net assets

Beginning of period 247,011,384 276,241,407

End of period $268,966,760 $247,011,384

Undistributed net investment income $391,950 $462,890

SEE NOTES TO FINANCIAL STATEMENTS21

Financial highlights

Class A Shares Period ended 11-30-14 ¹ 5-31-14 5-31-13 5-31-12 5-31-11 5-31-10

Per share operating performance

Net asset value, beginning of period $10.95 $11.06 $11.02 $10.07 $10.32 $9.70

Net investment income² 0.22 0.46 0.46 0.48 0.49 0.50

Net realized and unrealized gain (loss) on investments 0.11 (0.11 ) 0.04 0.94 (0.26 ) 0.61

Total from investment operations 0.33 0.35 0.50 1.42 0.23 1.11

Less distributions

From net investment income (0.22 ) (0.46 ) (0.46 ) (0.47 ) (0.48 ) (0.49 )

Net asset value, end of period $11.06 $10.95 $11.06 $11.02 $10.07 $10.32

Total return (%)^3,4 3.03 ⁵ 3.46 4.55 14.43 2.29 11.69

Ratios and supplemental data

Net assets, end of period (in millions) $233 $214 $241 $243 $224 $250

Ratios (as a percentage of average net assets):

Expenses before reductions 0.84 ⁶ 0.86 0.84 0.86 0.86 0.85

Expenses including reductions 0.84 ⁶ 0.86 0.84 0.86 0.86 0.85

Net investment income 3.92 ⁶ 4.40 4.15 4.56 4.79 4.97

Portfolio turnover (%) 13 19 7 9 2 9

1 Six months ended 11-30-14. Unaudited.

2 Based on average daily shares outstanding.

3 Does not reflect the effect of sales charges, if any.

4 Total returns would have been lower had certain expenses not been reduced during the applicable periods.

5 Not annualized.

6 Annualized.

22SEE NOTES TO FINANCIAL STATEMENTS

Class B Shares Period ended 11-30-14 ¹ 5-31-14 5-31-13 5-31-12 5-31-11 5-31-10

Per share operating performance

Net asset value, beginning of period $10.95 $11.07 $11.03 $10.07 $10.32 $9.70

Net investment income² 0.17 0.39 0.38 0.40 0.40 0.41

Net realized and unrealized gain (loss) on investments 0.13 (0.12 ) 0.03 0.95 (0.26 ) 0.61

Total from investment operations 0.30 0.27 0.41 1.35 0.14 1.02

Less distributions

From net investment income (0.18 ) (0.39 ) (0.37 ) (0.39 ) (0.39 ) (0.40 )

Net asset value, end of period $11.07 $10.95 $11.07 $11.03 $10.07 $10.32

Total return (%)^3,4 2.74 ⁵ 2.60 3.76 13.67 1.43 10.75

Ratios and supplemental data

Net assets, end of period (in millions) $2 $2 $3 $2 $2 $4

Ratios (as a percentage of average net assets):

Expenses before reductions 1.70 ⁶ 1.71 1.69 1.71 1.71 1.70

Expenses including reductions 1.59 ⁶ 1.61 1.59 1.62 1.71 1.70

Net investment income 3.17 ⁶ 3.65 3.40 3.79 3.92 4.12

Portfolio turnover (%) 13 19 7 9 2 9

SEE NOTES TO FINANCIAL STATEMENTS23

Class C Shares Period ended 11-30-14 ¹ 5-31-14 5-31-13 5-31-12 5-31-11 5-31-10

Per share operating performance

Net asset value, beginning of period $10.95 $11.06 $11.02 $10.07 $10.32 $9.70

Net investment income² 0.17 0.39 0.38 0.40 0.40 0.41

Net realized and unrealized gain (loss) on investments 0.12 (0.11 ) 0.03 0.94 (0.26 ) 0.61

Total from investment operations 0.29 0.28 0.41 1.34 0.14 1.02

Less distributions

From net investment income (0.18 ) (0.39 ) (0.37 ) (0.39 ) (0.39 ) (0.40 )

Net asset value, end of period $11.06 $10.95 $11.06 $11.02 $10.07 $10.32

Total return (%)^3,4 2.65 ⁵ 2.69 3.77 13.56 1.43 10.76

Ratios and supplemental data

Net assets, end of period (in millions) $33 $31 $33 $29 $26 $25

Ratios (as a percentage of average net assets):

Expenses before reductions 1.70 ⁶ 1.71 1.69 1.71 1.71 1.70

Expenses including reductions 1.59 ⁶ 1.61 1.59 1.62 1.71 1.70

Net investment income 3.17 ⁶ 3.65 3.40 3.79 3.95 4.11

Portfolio turnover (%) 13 19 7 9 2 9

24SEE NOTES TO FINANCIAL STATEMENTS

Notes to financial statements (unaudited)

Note 1 — Organization

John Hancock California Tax-Free Income Fund (the fund) is the sole series of John Hancock California Tax-Free Income Fund (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek a high level of current income, consistent with preservation of capital, that is exempt from federal and California personal income taxes.

The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class B shares are closed to new investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ. Class B shares convert to Class A shares eight years after purchase.

Note 2 — Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund intends to qualify as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.

Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In order to value the securities, the fund uses the following valuation techniques: Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Certain short-term securities with maturities of 60 days or less at the time of purchase are valued at amortized cost. Other fund securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.

The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.

As of November 30, 2014, all investments are categorized as Level 2 under the hierarchy described above.

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, the MRA does not result in an offset of the reported amounts of assets and liabilities in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.

Line of credit. The fund may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the maximum extent permitted by law, to the extent of any overdraft.

In addition, the fund and other affiliated funds have entered into an agreement with Citibank N.A. that enables them to participate in a $300 million unsecured committed line of credit. A commitment fee, payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund on a pro rata basis and is reflected in other expenses on the Statement of operations. Commitment fees for the six months ended November 30, 2014 were $280. For the six months ended November 30, 2014, the fund had no borrowings under the line of credit.

Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, are calculated daily for each class, based on the net asset value of the class and the applicable specific expense rates.

Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

Under the Regulated Investment Company Modernization Act of 2010, the fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

For federal income tax purposes, as of May 31, 2014, the fund has a capital loss carryforward of $3,746,915 available to offset future net realized capital gains. The following table details the capital loss carryforward available as of May 31, 2014:

Capital loss carryforward expiring at May 31 No expiration date

2017 2018 Short-term Long-term

$731,359 $206,417 $1,390,578 $1,418,561

As of May 31, 2014, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are distributed annually.

Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class.

Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to distributions payable and accretion on debt securities.

Note 3 — Guarantees and indemnifications

Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.

Note 4 — Fees and transactions with affiliates

John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).

Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent, on an annual basis, to the sum of: (a) 0.550% of the first $500 million of the fund's average daily net assets, (b) 0.500% of the next $500 million of the fund's average daily net assets, (c) 0.475% of the next $1 billion of the fund's average daily net assets and (d) 0.450% of the fund's average daily net assets in excess of $2 billion. The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.

The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock complex, including the fund (the participating portfolios). The waiver equals, on an annualized basis, 0.0100% of that portion of the aggregate net assets of all the participating portfolios that exceeds $75 billion but is less than or equal to $125 billion; 0.0125% of that portion of the aggregate net assets of all the participating portfolios that exceeds $125 billion but is less than or equal to $150 billion; and 0.0150% of that portion of the aggregate net assets of all the participating portfolios that exceeds $150 billion. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.

The expense reductions described above amounted to $8,018, $76, and $1,181 for Class A, Class B, and Class C shares, respectively, for the six months ended November 30, 2014.

The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended November 30, 2014 were equivalent to a net annual effective rate of 0.54% of the fund's average daily net assets.

Accounting and legal services. Pursuant to the Accounting and Legal Services Agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended November 30, 2014 amounted to an annual rate of 0.02% of the fund's average daily net assets.

Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class B, and Class C shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares.

Class Rule 12b-1 fee

Class A 0.15%

Class B 1.00%

Class C 1.00%

The fund's Distributor has contractually agreed to waive 0.10% of Rule 12b-1 fees for Class B and Class C shares. The current waiver agreement expires on September 30, 2015, unless renewed by the mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. Reimbursements related to this contractual waiver amounted to $1,049 and $16,228 for Class B and Class C shares, respectively, for the six months November 30, 2014.

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $147,403 for the six months ended November 30, 2014. Of this amount, $20,907 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $122,379 was paid as sales commissions to broker-dealers, and $4,117 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor. The up-front sales charge for Class A shares is 4.00%.

Class A, Class B, and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class B shares that are redeemed within six years of purchase are subject to CDSCs, at declining rates, beginning at 5.00%. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended November 30, 2014, CDSCs received by the Distributor amounted to $0, $3,603, and $585 for Class A, Class B, and Class C shares, respectively.

Transfer agent fees. The fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes, and Municipal

Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.

Class level expenses. Class level expenses for the six months ended November 30, 2014 were:

Class Distribution and service fees Transfer agent fees

Class A $165,507 $62,858

Class B 10,489 598

Class C 162,284 9,245

Total $338,280 $72,701

Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to each fund based on its net assets relative to other funds within the John Hancock group of funds complex.

Note 5 — Fund share transactions

Transactions in fund shares for the six months ended November 30, 2014 and for the year ended May 31, 2014 were as follows:

Six months ended 11-30-14 Year ended 5-31-14

Shares Amount Shares Amount

Class A shares

Sold 2,184,922 $24,041,261 1,828,337 $19,358,245

Distributions reinvested 318,643 3,506,513 687,940 7,262,382

Repurchased (948,856 ) (10,427,402 ) (4,749,593 ) (50,074,996 )

Net increase (decrease) 1,554,709 $17,120,372 (2,233,316 ) ($23,454,369 )

Class B shares

Sold 873 $9,769 42,815 $459,901

Distributions reinvested 2,496 27,468 6,419 67,761

Repurchased (12,446 ) (136,669 ) (81,709 ) (861,809 )

Net decrease (9,077 ) ($99,432 ) (32,475 ) ($334,147 )

Class C shares

Sold 345,928 $3,795,376 354,503 $3,767,944

Distributions reinvested 30,598 336,709 65,864 695,236

Repurchased (179,957 ) (1,975,140 ) (562,072 ) (5,926,293 )

Net increase (decrease) 196,569 $2,156,945 (141,705 ) ($1,463,113 )

Total net increase (decrease) 1,742,201 $19,177,885 (2,407,496 ) ($25,251,629 )

Note 6 — Purchase and sale of securities

Purchases and sales of securities, other than short-term investments, amounted to $52,575,816 and $31,996,009, respectively, for the six months ended November 30, 2014.

CONTINUATION OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

This section describes the evaluation by the Board of Trustees (the Board) of John Hancock California Tax-Free Income Fund (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Advisers, LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with John Hancock Asset Management a division of Manulife Asset Management (US) LLC (the Subadvisor) for John Hancock California Tax-Free Income Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2014 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at an in-person meeting held on May 27-29, 2014.

Approval of Advisory and Subadvisory Agreements

At in-person meetings held on June 23-25, 2014, the Board, including the Trustees who are not considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.

In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor's revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board notes that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor's affiliates, including distribution services.

Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.

Approval of Advisory Agreement

In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and does not treat any single factor as determinative, and each Trustee may attribute different weights to different factors. The Board's conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board's ongoing regular review of fund performance and operations throughout the year.

Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor's compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust's Chief Compliance Officer (CCO) regarding the fund's compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board also considered the Advisor's risk management processes. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers.

In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor's management and the quality of the performance of the Advisor's duties, through Board meetings, discussions and reports during the preceding year and through each Trustee's experience as a Trustee of the Trust and of the other trusts in the complex.

In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:

(a) the skills and competency with which the Advisor has in the past managed the Trust's affairs and its subadvisory relationship, the Advisor's oversight and monitoring of the Subadvisor's investment performance and compliance programs, such as the Subadvisor's compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor's timeliness in responding to performance issues;

(b) the background, qualifications and skills of the Advisor's personnel;

(c) the Advisor's compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments;

(d) the Advisor's administrative capabilities, including its ability to supervise the other service providers for the fund;

(e) the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; and

(f) the Advisor's reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments.

The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.

Investment performance. In considering the fund's performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund's performance results. In connection with the consideration of the Advisory Agreement, the Board:

(a) reviewed information prepared by management regarding the fund's performance;

(b) considered the comparative performance of an applicable benchmark index;

(c) considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and

(d) took into account the Advisor's analysis of the fund's performance and its plans and recommendations regarding the Trust's subadvisory arrangements generally.

The Board noted that the fund underperformed its benchmark index for the one-year period ended December 31, 2013 and outperformed its benchmark index for the three- and five-year periods ended December 31, 2013. The Board noted that the

fund outperformed its peer group average for the one-, three- and five-year periods ended December 31, 2013. The Board concluded that the fund's performance has outperformed the historical performance of comparable funds and the fund's benchmark.

Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of mutual fund data, including, among other data, the fund's contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund. The Board considered the fund's ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund's ranking within a broader group of funds. In comparing the fund's contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and total expenses for the fund are higher than the peer group median. The Board took into account management's discussion of the fund's expenses.

The Board also took into account management's discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed, effective July 1, 2014, to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund's operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund's distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for the fund's share classes through September 30, 2015. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the complex) having similar investment mandates, if any. The Board considered any differences between the Advisor's and Subadvisor's services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable.

Profitability/indirect benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor's relationship with the Trust, the Board:

(a) reviewed financial information of the Advisor;

(b) reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund;

(c) received and reviewed profitability information with respect to the John Hancock fund complex as a whole;

(d) received information with respect to the Advisor's allocation methodologies used in preparing the profitability data;

(e) considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability analysis reviewed by the Board;

(f) considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement;

(g) noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund's distributor also receives Rule 12b-1 payments to support distribution of the fund;

(h) noted that the fund's Subadvisor is an affiliate of the Advisor;

(i) noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund;

(j) noted that the subadvisory fee for the fund is paid by the Advisor; and

(k) considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the entrepreneurial risk that it assumes as Advisor.

Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.

Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:

(a) considered that the Advisor has agreed, effective July 1, 2014, to waive a portion of its management fee for the fund and each of the other John Hancock funds in the complex (except for those discussed below) (the Participating Portfolios) or otherwise reimburse the expenses of the Participating Portfolios as follows (the Reimbursement):

The Reimbursement shall equal, on an annualized basis, 0.01% of that portion of the aggregate net assets of all the Participating Portfolios that exceed $75 billion but is less than or equal to $125 billion, 0.0125% of that portion of the aggregate net assets of all the Participating Portfolios that exceed $125 billion but is less than or equal to $150 billion and 0.015% of that portion of the aggregate net assets of all the Participating Portfolios that exceeds $150 billion. (The funds that are not Participating Portfolios are the funds of funds in the complex, which benefit from such overall management fee waiver through their investment in underlying portfolios that include Participating Portfolios, which are subject to the Reimbursement.)

(b) reviewed the fund's advisory fee structure and concluded that: (i) the fund's fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management's discussion of the fund's advisory fee structure; and

(c) the Board also considered the effect of the fund's growth in size on its performance and fees. The Board also noted that if the fund's assets increase over time, the fund may realize other economies of scale.

Approval of Subadvisory Agreement

In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:

(1) information relating to the Subadvisor's business, including current subadvisory services to the Trust (and other funds in the John Hancock family of funds);

(2) the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and

(3) the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data.

Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor's Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor's current level of staffing and its overall resources, as well as received information relating to the Subadvisor's compensation program. The Board reviewed the Subadvisor's history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor's investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor's compliance program and any disciplinary history. The Board also

considered the Subadvisor's risk assessment and monitoring process. The Board reviewed the Subadvisor's regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust's CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.

The Board considered the Subadvisor's investment process and philosophy. The Board took into account that the Subadvisor's responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund's investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor's brokerage policies and practices, including with respect to best execution and soft dollars.

Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also considered any potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.

In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor's relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock fund complex and reputational benefits.

Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund's subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.

Subadvisor performance. As noted above, the Board considered the fund's performance as compared to the fund's peer group and the benchmark index and noted that the Board reviews information about the fund's performance results at its regularly scheduled meetings. The Board noted the Advisor's expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor's focus on the Subadvisor's performance. The Board also noted the Subadvisor's long-term performance record for similar accounts, as applicable.

The Board's decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:

(1) the Subadvisor has extensive experience and demonstrated skills as a manager;

(2) the fund has outperformed the historical performance of comparable funds and the fund's benchmark;

(3) the subadvisory fee is reasonable in relation to the level and quality of services being provided; and

(4) subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows.

* * *

Based on the Board's evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.

More information

Trustees

James M. Oates, Chairperson
Steven R. Pruchansky, Vice Chairperson
Charles L. Bardelis*
Craig Bromley†
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Theron S. Hoffman*
Deborah C. Jackson
Hassell H. McClellan
Gregory A. Russo
Warren A. Thomson†

Officers

Andrew G. Arnott
President

John J. Danello
Senior Vice President, Secretary,
and Chief Legal Officer

Francis V. Knox, Jr.
Chief Compliance Officer

Charles A. Rizzo
Chief Financial Officer

Salvatore Schiavone
Treasurer

Investment advisor

John Hancock Advisers, LLC

Subadvisor

John Hancock Asset Management a division of Manulife Asset Management (US) LLC

Principal distributor

John Hancock Funds, LLC

Custodian

State Street Bank and Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

*Member of the Audit Committee
†Non-Independent Trustee

The fund's proxy voting policies and procedures, as well as the fund's proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.

The fund's complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 800-SEC-0330 to receive information on the operation of the SEC's Public Reference Room.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.

You can also contact us:

800-225-5291
jhinvestments.com
Regular mail:

John Hancock Signature Services, Inc.
P.O. Box 55913
Boston, MA 02205-5913

Express mail:

John Hancock Signature Services, Inc.
30 Dan Road
Canton, MA 02021

Family of funds

DOMESTIC EQUITY FUNDS

Balanced

Classic Value

Disciplined Value

Disciplined Value Mid Cap

Fundamental All Cap Core

Fundamental Large Cap Core

Fundamental Large Cap Value

Large Cap Equity

Select Growth

Small Cap Equity

Small Cap Value

Small Company

Strategic Growth

U.S. Equity

U.S. Global Leaders Growth

Value Equity

GLOBAL AND INTERNATIONAL EQUITY FUNDS

Disciplined Value International

Emerging Markets

Global Equity

Global Opportunities

Global Shareholder Yield

Greater China Opportunities

International Core

International Growth

International Growth Equity

International Small Company

International Value Equity

INCOME FUNDS

Bond

California Tax-Free Income

Core High Yield

Emerging Markets Debt

Floating Rate Income

Focused High Yield

Global Income

Government Income

High Yield Municipal Bond

Income

Investment Grade Bond

INCOME FUNDS (continued)

Massachusetts Tax-Free Income

Money Market

New York Tax-Free Income

Short Duration Credit Opportunities

Strategic Income Opportunities

Tax-Free Bond

ALTERNATIVE AND SPECIALTY FUNDS

Absolute Return Currency

Alternative Asset Allocation

Enduring Equity

Financial Industries

Global Absolute Return Strategies

Global Conservative Absolute Return

Natural Resources

Redwood

Regional Bank

Seaport

Technical Opportunities

ASSET ALLOCATION PORTFOLIOS

Income Allocation

Lifestyle Aggressive

Lifestyle Balanced

Lifestyle Conservative

Lifestyle Growth

Lifestyle Moderate

Retirement Choices (2010-2055)

Retirement Living (2010-2055)

Retirement Living II (2010-2055)

CLOSED-END FUNDS

Financial Opportunities

Hedged Equity & Income

Income Securities Trust

Investors Trust

Preferred Income

Preferred Income II

Preferred Income III

Premium Dividend

Tax-Advantaged Dividend Income

Tax-Advantaged Global Shareholder Yield

The fund's investment objective, risks, charges, and expenses are included in the prospectuses and should be considered carefully before investing. For a prospectus, call your financial professional, call John Hancock Investments at 800-225-5291, or visit the fund's website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.

John Hancock Investments

A trusted brand

John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America's strongest and most-recognized brands.

A better way to invest

As a manager of managers, we search the world to find proven portfolio teams with specialized expertise for every fund we offer, then apply vigorous investment oversight to ensure they continue to meet our uncompromising standards.

Results for investors

Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes.

John Hancock Funds, LLC n Member FINRA, SIPC
601 Congress Street n Boston, MA 02210-2805
800-225-5291 n jhinvestments.com

This report is for the information of the shareholders of John Hancock California Tax-Free Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.

MF209431 53SA 11/14
1/15

ITEM 2. CODE OF ETHICS.

Not applicable at this time.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable at this time.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable at this time.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable at this time.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a)

Not applicable.

(b)

Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.

(b) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.

(c)(1) Contact person at the registrant.

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.

John Hancock California Tax-Free Income Fund

By:	/s/ Andrew Arnott
	Andrew Arnott
	President

Date: January 15, 2015

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/ Andrew Arnott
	Andrew Arnott
	President

Date: January 15, 2015

By:	/s/ Charles A. Rizzo
	Charles A. Rizzo
	Chief Financial Officer

Date: January 15, 2015

Date of fiscal year end:	May 31

Date of reporting period:	November 30, 2014


Golden State Tobacco Securitization Corp., Series A, 5.000%, 6-1-35	3.8
Inland Valley Development Agency, Series A, 5.000%, 9-1-44	3.1
San Francisco City & County Airports Comm-San Francisco International Airport, Series B, 5.000%, 5-1-44	2.5
Santa Ana Financing Authority, Prerefunded, Police Administration Holding, 6.250%, 7-1-24	2.4
Santa Ana Financing Authority, Unrefunded, Police Administration Holding, 6.250%, 7-1-24	2.4
State of California, 6.500%, 4-1-33	2.3
San Joaquin Hills Transportation Corridor Agency, Highway Revenue Tolls, Escrowed to Maturity, zero coupon bond, 1-1-22	2.1
Foothill-Eastern Transportation Corridor Agency, Series A, 5.750%, 1-15-46	2.1
State of California, 5.000%, 4-1-43	2.1
California State Public Works Board, Department of Corrections, Series A, 5.000%, 12-1-19	2.1
Total	24.9
As a percentage of net assets.
Cash and cash equivalents are not included.


Average annual total returns (%) with maximum sales charge				Cumulative total returns (%) with maximum sales charge			SEC 30-day yield (%) subsidized	SEC 30-day yield (%) unsubsidized¹	Tax- equivalent subsidized yield (%)²
	1-year	5-year	10-year	6-month	5-year	10-year	as of 11-30-14	as of 11-30-14	as of 11-30-14
Class A	6.45	5.65	4.37	-1.12	31.62	53.35	2.10	2.10	4.28
Class B	5.13	5.38	4.11	-2.26	29.98	49.55	1.43	1.32	2.91
Class C	9.03	5.69	3.94	1.65	31.86	47.20	1.43	1.33	2.91
Index 1^†	9.32	6.17	5.12	2.67	34.93	64.73	—	—	—
Index 2^†	8.23	5.12	4.81	2.45	28.39	59.99	—	—	—


	Start date	With maximum sales charge ($)	Without sales charge ($)	Index 1 ($)	Index 2 ($)
Class B³	11-30-04	14,955	14,955	16,473	15,999
Class C³	11-30-04	14,720	14,720	16,473	15,999


	Account value on 6-1-2014	Ending value on 11-30-2014	Expenses paid during period ended 11-30-2014¹	Annualized expense ratio
Class A	$1,000.00	$1,030.30	$4.28	0.84%
Class B	1,000.00	1,027.40	8.08	1.59%
Class C	1,000.00	1,026.50	8.08	1.59%


As of 11-30-14 (unaudited)
	Rate (%)	Maturity date	Par value	Value
Municipal bonds 96.5%				$259,672,513
(Cost $236,288,511)
California 95.4%				256,761,973
ABAG Finance Authority for Nonprofit Corps. Institute on Aging (D)	5.650	08-15-38	1,000,000	1,097,150
ABAG Finance Authority for Nonprofit Corps. Sharp Healthcare	6.250	08-01-39	1,000,000	1,174,090
ABAG Finance Authority for Nonprofit Corps. Sharp HealthCare, Series A	5.000	08-01-43	2,000,000	2,233,800
Anaheim Certificates of Participation Convention Center (D) (P) (S)	11.899	07-16-23	1,800,000	1,803,366
Anaheim Public Financing Authority Public Improvement Project, Series C (D) (Z)	1.199	09-01-18	3,000,000	2,866,920
Anaheim Public Financing Authority Series A	5.000	05-01-46	1,000,000	1,092,560
Belmont Community Facilities Library Project, Series A (D)	5.750	08-01-24	1,000,000	1,260,230
California County Tobacco Securitization Agency	5.000	06-01-40	1,500,000	1,607,850
California County Tobacco Securitization Agency Fresno County Funding Corp.	6.000	06-01-35	1,765,000	1,764,841
California County Tobacco Securitization Agency Kern County Corp., Series A	6.125	06-01-43	5,000,000	5,002,446
California County Tobacco Securitization Agency Public Improvements	5.250	06-01-21	3,425,000	3,425,241
California County Tobacco Securitization Agency Stanislaus Funding, Series A	5.500	06-01-33	515,000	506,317
California Educational Facilities Authority Prerefunded College and University Funding Program	5.000	02-01-26	1,130,000	1,240,661
California Educational Facilities Authority Woodbury University	5.000	01-01-25	1,800,000	1,807,686
California Health Facilities Financing Authority Kaiser Permanente, Series A	5.250	04-01-39	2,500,000	2,604,250
California Health Facilities Financing Authority Lucile Salter Packard ChildrenLucile Salter Packard Children	5.000	08-15-43	1,000,000	1,126,080
California Health Facilities Financing Authority Providence Health and Services, Series C	6.500	10-01-33	1,000,000	1,215,830
California Health Facilities Financing Authority Scripps Health, Series A	5.000	11-15-36	1,000,000	1,121,710
California Infrastructure & Economic Development Bank California Independent System Operator, Series A	6.250	02-01-39	2,000,000	2,021,400


California Pollution Control Financing Authority Waste Management Inc., Series C, AMT (P)	5.125	11-01-23	2,000,000	$2,083,500
California State Public Works Board Department of Corrections, Series A (D)	5.000	12-01-19	5,000,000	5,520,300
California State Public Works Board Series A	5.000	09-01-39	2,500,000	2,825,250
California State Public Works Board Trustees California State University, Series D	6.250	04-01-34	2,000,000	2,401,580
California State Public Works Board Various Capital Projects, Series A	5.000	04-01-37	1,000,000	1,128,060
California State University College and University Revenue, Series A	5.000	11-01-44	2,000,000	2,285,720
California State University College and University Revenue, Series A	5.250	11-01-34	1,000,000	1,141,080
California Statewide Communities Development Authority American Baptist Homes West	6.250	10-01-39	2,000,000	2,272,440
California Statewide Communities Development Authority Insured-Los Angeles Jewish Homes, Series S (D)	5.000	08-01-44	2,250,000	2,519,528
California Statewide Communities Development Authority Insured-Redwoods Project (D)	5.375	11-15-44	1,500,000	1,692,000
California Statewide Communities Development Authority Senior Living of Southern California (S)	7.250	11-15-41	1,700,000	2,033,489
California Statewide Communities Development Authority University of California - Irvine	5.750	05-15-32	1,230,000	1,354,353
California Statewide Financing Authority Tobacco Settlement, Series A	6.000	05-01-37	2,500,000	2,499,775
California Statewide Financing Authority Tobacco Settlement, Series B	6.000	05-01-37	4,000,000	3,999,640
Center Unified School District, Series C (D)(Z)	0.928	09-01-16	2,145,000	2,110,015
City of Irvine CA Community Facilities District	5.000	09-01-49	2,000,000	2,212,960
City of La Verne CA Brethren Hillcrest Homes	5.000	05-15-36	750,000	800,048
City of San Mateo Community Facilities District	5.500	09-01-44	2,000,000	2,232,180
Cloverdale Community Development Agency	5.500	09-01-38	3,000,000	2,635,500
Contra Costa County Public Financing Authority, Series A (D)	5.000	06-01-28	1,230,000	1,234,649
East Side Union High School District-Santa Clara County (D)	5.250	09-01-24	2,500,000	3,123,850
Folsom Public Financing Authority, Series B	5.125	09-01-26	965,000	998,669


Foothill-Eastern Transportation Corridor Agency, Series A	5.750	01-15-46	5,000,000	$5,737,700
Fresno Sewer System Revenue, Series A-1 (D)	5.250	09-01-19	1,000,000	1,094,010
Golden State Tobacco Securitization Corp., Series A (D)	5.000	06-01-35	10,000,000	10,236,500
Inland Valley Development Agency Series A	5.000	09-01-44	7,500,000	8,245,650
Kern County, Capital Improvements Project, Series A (D)	5.750	08-01-35	1,000,000	1,147,280
Laguna Salada Union School District, Series C (D)(Z)	3.442	08-01-26	1,000,000	669,930
Lancaster School District School Improvements (D) (Z)	1.302	04-01-19	1,730,000	1,634,314
Lancaster School District School Improvements (D) (Z)	1.955	04-01-22	1,380,000	1,194,832
Long Beach Harbor Revenue, Series A, AMT (D)	6.000	05-15-18	2,660,000	3,100,443
Long Beach Special Tax Community Facilities District 6-Pike Project	6.250	10-01-26	2,480,000	2,484,067
Los Angeles Community College District 2008 Election, Series A	6.000	08-01-33	4,000,000	4,809,680
Los Angeles Community Facilities District No: 3 Cascades Business Park	6.400	09-01-22	555,000	559,601
Los Angeles County Redevelopment Authority LA Bunker Hill Project, Series C (D)	5.000	12-01-28	2,590,000	3,013,077
Los Angeles County Regional Financing Authority Montecedro Incorporated Project, Series A (D)	5.000	11-15-44	1,355,000	1,484,335
Los Angeles Department of Water & Power Power Systems, Series D	5.000	07-01-44	1,000,000	1,137,010
M-S-R Energy Authority Natural Gas Revenue, Series A	6.500	11-01-39	1,000,000	1,355,150
M-S-R Energy Authority Natural Gas Revenue, Series B	6.500	11-01-39	3,500,000	4,743,025
Morgan Hill Redevelopment Agency Successor Agency Series A	5.000	09-01-33	1,750,000	1,984,570
Oakland Unified School District/Alameda County	6.625	08-01-38	1,000,000	1,234,790
Orange County Improvement Bond Act 1915, Series B	5.750	09-02-33	1,365,000	1,372,617
Paramount Unified School District, Series B (D)(Z)	3.467	09-01-25	4,735,000	3,264,498
Pasadena California Certificates Participation Refunding Old Pasadena Parking Facility Project	6.250	01-01-18	430,000	464,340
Port of Los Angeles Series A AMT	5.000	08-01-44	2,000,000	2,239,100
Ripon Redevelopment Agency Ripon Community Redevelopment Project (D)	4.750	11-01-36	1,515,000	1,534,331
Riverside County Transportation Commission, Series A	5.750	06-01-48	1,000,000	1,136,270
San Bernardino County Capital Facilities Project, Escrowed to Maturity, Series B	6.875	08-01-24	350,000	468,524


San Bernardino County Medical Center Financing Project, Series B (D)	5.500	08-01-17	3,740,000	$3,976,667
San Bruno Park School District School Improvements, Series B (D) (Z)	2.450	08-01-21	1,015,000	861,644
San Diego County Regional Airport Authority, Series A	5.000	07-01-44	4,925,000	5,488,371
San Diego County Regional Transportation Commission Sales and Use Tax, Series A	5.000	04-01-44	3,000,000	3,451,230
San Diego Public Facilities Financing Authority Lease Revenue	5.250	03-01-40	1,000,000	1,099,610
San Diego Redevelopment Agency City Heights, Series A	5.750	09-01-23	1,000,000	1,001,620
San Diego Redevelopment Agency City Heights, Series A	5.800	09-01-28	1,395,000	1,396,883
San Diego Redevelopment Agency Public Improvements, Series B (Z)	4.326	09-01-17	1,600,000	1,421,440
San Diego Redevelopment Agency Public Improvements, Series B (Z)	4.906	09-01-18	1,700,000	1,416,559
San Diego Unified School District, Election of 1998, Series A (D)(Z)	2.297	07-01-21	2,500,000	2,148,125
San Francisco City & County Airports Comm-San Francisco International Airport Series B	5.000	05-01-44	5,890,000	6,629,195
San Francisco City & County Redevelopment Agency Department of General Services Lease, No. 6, Mission Bay South, Series A	5.150	08-01-35	1,250,000	1,263,438
San Francisco City & County Redevelopment Agency Mission Bay South Redevelopment, Series D	7.000	08-01-41	1,000,000	1,218,850
San Francisco City & County Redevelopment Financing Authority Mission Bay South Redevelopment, Series D	6.625	08-01-39	1,000,000	1,159,340
San Francisco City & County Redevelopment Financing Authority San Francisco Redevelopment Projects, Series B	6.625	08-01-39	700,000	814,863
San Joaquin County County Administration Building (D)	5.000	11-15-29	2,965,000	3,118,172
San Joaquin Hills Transportation Corridor Agency Highway Revenue Tolls, Escrowed to Maturity (Z)	1.733	01-01-22	6,500,000	5,744,440
San Joaquin Hills Transportation Corridor Agency Highway Revenue Tolls, Series A	5.750	01-15-21	2,000,000	2,031,980
San Joaquin Hills Transportation Corridor Agency Series A	5.000	01-15-44	2,500,000	2,684,875
San Mateo County Joint Power Authority (D)	5.000	07-01-21	1,815,000	2,124,058
Santa Ana Financing Authority Prerefunded, Police Administration Holding (D)	6.250	07-01-19	895,000	1,090,942
Santa Ana Financing Authority Prerefunded, Police Administration Holding (D)	6.250	07-01-24	5,000,000	6,383,150


The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
AMT	Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax.
(D)	Bond is insured by one or more of these companies:


1	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.





	Six months ended 11-30-14		Year ended 5-31-14
	(unaudited)
Increase (decrease) in net assets
From operations
Net investment income	$4,870,199		$10,524,971
Net realized gain (loss)	256,646		(4,118,059	)
Change in net unrealized appreciation (depreciation)	2,591,785		160,500
Increase in net assets resulting from operations	7,718,630		6,567,412
Distributions to shareholders
From net investment income
Class A	(4,383,592	)	(9,357,225	)
Class B	(33,880	)	(76,785	)
Class C	(523,667	)	(1,111,796	)
Total distributions	(4,941,139	)	(10,545,806	)
From fund share transactions	19,177,885		(25,251,629	)
Total increase (decrease)	21,955,376		(29,230,023	)
Net assets
Beginning of period	247,011,384		276,241,407
End of period	$268,966,760		$247,011,384
Undistributed net investment income	$391,950		$462,890





Class A Shares Period ended		11-30-14	¹	5-31-14		5-31-13		5-31-12		5-31-11		5-31-10
Per share operating performance
Net asset value, beginning of period		$10.95		$11.06		$11.02		$10.07		$10.32		$9.70
Net investment income²		0.22		0.46		0.46		0.48		0.49		0.50
Net realized and unrealized gain (loss) on investments		0.11		(0.11	)	0.04		0.94		(0.26	)	0.61
Total from investment operations		0.33		0.35		0.50		1.42		0.23		1.11
Less distributions
From net investment income		(0.22	)	(0.46	)	(0.46	)	(0.47	)	(0.48	)	(0.49	)
Net asset value, end of period		$11.06		$10.95		$11.06		$11.02		$10.07		$10.32
Total return (%)^3,4		3.03	⁵	3.46		4.55		14.43		2.29		11.69
Ratios and supplemental data
Net assets, end of period (in millions)		$233		$214		$241		$243		$224		$250
Ratios (as a percentage of average net assets):
	Expenses before reductions	0.84	⁶	0.86		0.84		0.86		0.86		0.85
	Expenses including reductions	0.84	⁶	0.86		0.84		0.86		0.86		0.85
	Net investment income	3.92	⁶	4.40		4.15		4.56		4.79		4.97
Portfolio turnover (%)		13		19		7		9		2		9


1	Six months ended 11-30-14. Unaudited.
2	Based on average daily shares outstanding.
3	Does not reflect the effect of sales charges, if any.
4	Total returns would have been lower had certain expenses not been reduced during the applicable periods.
5	Not annualized.
6	Annualized.





Class B Shares Period ended		11-30-14	¹	5-31-14		5-31-13		5-31-12		5-31-11		5-31-10
Per share operating performance
Net asset value, beginning of period		$10.95		$11.07		$11.03		$10.07		$10.32		$9.70
Net investment income²		0.17		0.39		0.38		0.40		0.40		0.41
Net realized and unrealized gain (loss) on investments		0.13		(0.12	)	0.03		0.95		(0.26	)	0.61
Total from investment operations		0.30		0.27		0.41		1.35		0.14		1.02
Less distributions
From net investment income		(0.18	)	(0.39	)	(0.37	)	(0.39	)	(0.39	)	(0.40	)
Net asset value, end of period		$11.07		$10.95		$11.07		$11.03		$10.07		$10.32
Total return (%)^3,4		2.74	⁵	2.60		3.76		13.67		1.43		10.75
Ratios and supplemental data
Net assets, end of period (in millions)		$2		$2		$3		$2		$2		$4
Ratios (as a percentage of average net assets):
	Expenses before reductions	1.70	⁶	1.71		1.69		1.71		1.71		1.70
	Expenses including reductions	1.59	⁶	1.61		1.59		1.62		1.71		1.70
	Net investment income	3.17	⁶	3.65		3.40		3.79		3.92		4.12
Portfolio turnover (%)		13		19		7		9		2		9





Class C Shares Period ended		11-30-14	¹	5-31-14		5-31-13		5-31-12		5-31-11		5-31-10
Per share operating performance
Net asset value, beginning of period		$10.95		$11.06		$11.02		$10.07		$10.32		$9.70
Net investment income²		0.17		0.39		0.38		0.40		0.40		0.41
Net realized and unrealized gain (loss) on investments		0.12		(0.11	)	0.03		0.94		(0.26	)	0.61
Total from investment operations		0.29		0.28		0.41		1.34		0.14		1.02
Less distributions
From net investment income		(0.18	)	(0.39	)	(0.37	)	(0.39	)	(0.39	)	(0.40	)
Net asset value, end of period		$11.06		$10.95		$11.06		$11.02		$10.07		$10.32
Total return (%)^3,4		2.65	⁵	2.69		3.77		13.56		1.43		10.76
Ratios and supplemental data
Net assets, end of period (in millions)		$33		$31		$33		$29		$26		$25
Ratios (as a percentage of average net assets):
	Expenses before reductions	1.70	⁶	1.71		1.69		1.71		1.71		1.70
	Expenses including reductions	1.59	⁶	1.61		1.59		1.62		1.71		1.70
	Net investment income	3.17	⁶	3.65		3.40		3.79		3.95		4.11
Portfolio turnover (%)		13		19		7		9		2		9


Capital loss carryforward expiring at May 31		No expiration date
2017	2018	Short-term	Long-term
$731,359	$206,417	$1,390,578	$1,418,561


Class	Rule 12b-1 fee
Class A	0.15%
Class B	1.00%
Class C	1.00%


Class	Distribution and service fees	Transfer agent fees
Class A	$165,507	$62,858
Class B	10,489	598
Class C	162,284	9,245
Total	$338,280	$72,701



		Six months ended 11-30-14					Year ended 5-31-14
	Shares			Amount		Shares			Amount
Class A shares
Sold	2,184,922			$24,041,261		1,828,337			$19,358,245
Distributions reinvested	318,643			3,506,513		687,940			7,262,382
Repurchased	(948,856		)	(10,427,402	)	(4,749,593		)	(50,074,996	)
Net increase (decrease)	1,554,709			$17,120,372		(2,233,316		)	($23,454,369	)
Class B shares
Sold	873			$9,769		42,815			$459,901
Distributions reinvested	2,496			27,468		6,419			67,761
Repurchased	(12,446		)	(136,669	)	(81,709		)	(861,809	)
Net decrease	(9,077		)	($99,432	)	(32,475		)	($334,147	)
Class C shares
Sold	345,928			$3,795,376		354,503			$3,767,944
Distributions reinvested	30,598			336,709		65,864			695,236
Repurchased	(179,957		)	(1,975,140	)	(562,072		)	(5,926,293	)
Net increase (decrease)	196,569			$2,156,945		(141,705		)	($1,463,113	)
Total net increase (decrease)	1,742,201			$19,177,885		(2,407,496		)	($25,251,629	)


	(a)	the skills and competency with which the Advisor has in the past managed the Trust's affairs and its subadvisory relationship, the Advisor's oversight and monitoring of the Subadvisor's investment performance and compliance programs, such as the Subadvisor's compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor's timeliness in responding to performance issues;
	(b)	the background, qualifications and skills of the Advisor's personnel;
	(c)	the Advisor's compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments;
	(d)	the Advisor's administrative capabilities, including its ability to supervise the other service providers for the fund;
	(e)	the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; and
	(f)	the Advisor's reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments.


	(a)	reviewed information prepared by management regarding the fund's performance;
	(b)	considered the comparative performance of an applicable benchmark index;
	(c)	considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and
	(d)	took into account the Advisor's analysis of the fund's performance and its plans and recommendations regarding the Trust's subadvisory arrangements generally.


				(a)			reviewed financial information of the Advisor;
				(b)			reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund;
				(c)			received and reviewed profitability information with respect to the John Hancock fund complex as a whole;
				(d)			received information with respect to the Advisor's allocation methodologies used in preparing the profitability data;
				(e)			considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability analysis reviewed by the Board;
				(f)			considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement;
				(g)			noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund's distributor also receives Rule 12b-1 payments to support distribution of the fund;
				(h)			noted that the fund's Subadvisor is an affiliate of the Advisor;
				(i)			noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund;


				(j)			noted that the subadvisory fee for the fund is paid by the Advisor; and
				(k)			considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the entrepreneurial risk that it assumes as Advisor.


(a)	considered that the Advisor has agreed, effective July 1, 2014, to waive a portion of its management fee for the fund and each of the other John Hancock funds in the complex (except for those discussed below) (the Participating Portfolios) or otherwise reimburse the expenses of the Participating Portfolios as follows (the Reimbursement):
		The Reimbursement shall equal, on an annualized basis, 0.01% of that portion of the aggregate net assets of all the Participating Portfolios that exceed $75 billion but is less than or equal to $125 billion, 0.0125% of that portion of the aggregate net assets of all the Participating Portfolios that exceed $125 billion but is less than or equal to $150 billion and 0.015% of that portion of the aggregate net assets of all the Participating Portfolios that exceeds $150 billion. (The funds that are not Participating Portfolios are the funds of funds in the complex, which benefit from such overall management fee waiver through their investment in underlying portfolios that include Participating Portfolios, which are subject to the Reimbursement.)
(b)	reviewed the fund's advisory fee structure and concluded that: (i) the fund's fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management's discussion of the fund's advisory fee structure; and
(c)	the Board also considered the effect of the fund's growth in size on its performance and fees. The Board also noted that if the fund's assets increase over time, the fund may realize other economies of scale.


	(1)	information relating to the Subadvisor's business, including current subadvisory services to the Trust (and other funds in the John Hancock family of funds);
	(2)	the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and
	(3)	the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data.


	(1)	the Subadvisor has extensive experience and demonstrated skills as a manager;
	(2)	the fund has outperformed the historical performance of comparable funds and the fund's benchmark;
	(3)	the subadvisory fee is reasonable in relation to the level and quality of services being provided; and
	(4)	subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows.
* * *


	John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com
	This report is for the information of the shareholders of John Hancock California Tax-Free Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
	MF209431	53SA 11/14 1/15

Insurance Coverage

As a % of total
Investments

National Public Finance Guarantee Corp.

Ambac Financial Group, Inc.

ACA Financial Guaranty Corp.