Annual Report by Investment Company (Form N-CSR)

N-CSR

811-07404

626-1919

30e-1

les begins the process of rebuilding. Given California's history of managing natural disasters, we believe the state will be able to navigate these recent wildfires through effective fiscal policy.

 All three of the major credit rating agencies, Standard & Poor's, Fitch and Moody's have maintained their respective

AA and Aa2 rating on the state's general obligation bonds. In September 2024, Standard & Poor's affirmed a stable outlook. In February 2025, Fitch affirmed a stable outlook on their rating. In December 2024, Moody's upgraded their outlook to stable from negative.

 During the fiscal year ended February 28, 2025, investment grade municipal bonds returned 2.96%, high yield municipal bonds returned 8.12% and taxable municipal bonds returned 6.20%.

 At the beginning of the fiscal year, global economic growth was better than expected, largely due to a resilient US economy.

 The US Federal Reserve Board (Fed), in its efforts to rein in inflation without harming employment or the overall economy, continued with a transitional stance after its most aggressive monetary policy since the 1980s. The Fed left the federal funds rate unchanged over the fiscal year until September, when it began a series of three rate cuts through the end of the calendar year, resulting in a target rate of 4.50%.

The Fed remains committed to a 2% inflation target, while acknowledging the progress made thus far to gradually move toward a more neutral policy stance.

 Municipal supply initially continued at a steady pace as issuers, with cash on their balance sheets, had been reluctant to issue at higher interest rates; however, this trend reversed through the fiscal year, as issuers aimed to get ahead of the US presidential election in November. The uptick in supply brought the fiscal year's new issuance total to $522 billion, up 33% from the previous year's $393 billion.

 The fiscal year was also constructive in terms of inflows to municipal funds. Following two calendar years of outflows in 2022 and 2023, the municipal market began its retuto more positive levels over the fiscal year.

The fiscal year had a total of $43 billion in net inflows, which was a significant increase from $10 billion of outflows in the previous fiscal year.

 At the end of the fiscal year, municipal credits were still benefiting from federal pandemic aid and strong tax collections, with credit rating upgrades still outpacing rating downgrades.

We expect credit quality to remain generally stable in the near term, with fewer upgrades but no major increase in downgrades or defaults.

 With two anticipated rate cuts before the end of calendar year 2025 and a steady supply of new issuance, we believe high absolute yields, strong fundamentals and investor migration out of cash will present positive opportunities for municipal bonds. We continue

to rely on our experienced portfolio managers and credit analysts to weather economic challenges while seeking to identify marketplace opportunities to add long-term value for shareholders.

 During the fiscal year, an overweight exposure to dedicated tax bonds added to the Trust's relative retucompared to its style-specific benchmark. An overweight exposure to

credits added to relative return.

An underweight allocation to bonds with coupons between 5.00% and 5.49% also had a positive impact on relative performance.

 An underweight allocation to industrial development revenue/pollution control revenue bonds detracted from the Trust's relative return. An underweight allocation to

credits detracted from relative return.

An overweight exposure to

bonds also detracted from relative return.

 One important factor affecting the Trust's performance relative to its style-specific benchmark was the use of leverage. The Trust uses leverage because we believe that, over time, leveraging can provide opportunities for additional income and total retufor common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, if the prices of securities held by a trust decline, the negative effect of these valuation changes on common-share NAV and total retuis magnified by the use of leverage. Conversely, leverage may enhance common-share returns during periods when the prices of securities held by a trust generally are rising.

 Over the fiscal year, leverage contributed to the Trust's performance relative to its style-specific benchmark. The Trust achieved a leveraged position through the use of inverse floating rate securities and variable rate muni term preferred (VMTP) shares. Inverse floating rate securities or tender option bonds (TOBs) are instruments that have an inverse relationship to a referenced interest rate. VMTPs are a variable rate form of preferred stock with a mandatory redemption date. Inverse floating rate securities and VMTPs can be an efficient way to manage duration, yield curve exposure and credit exposure, potentially enhancing yield. At the close of the fiscal year, leverage accounted for 38% of the Trust's total assets and it contributed to returns. For more information about the Trust's use of leverage, see the Notes to Financial Statements later in this report.

 We wish to remind you that the Trust is subject to interest rate risk, meaning when interest rates rise, the value of fixed income securities tends to fall. The degree to which the value of fixed income securities may decline due to rising interest rates may vary depending on the speed and magnitude of the increase in interest rates, as well as individual security characteristics, such as price, maturity, duration and coupon and market forces, such as supply and demand for similar securities. We are monitoring interest rates, and the market, economic and geopolitical factors that may impact the direction, speed and magnitude of changes to interest rates across

the maturity spectrum, including the potential impact of monetary policy changes by the Fed and certain foreign central banks. If interest rates rise or fall faster than expected, markets may experience increased volatility, which may affect the value and/or liquidity of certain of the Trust's investments and/or the market price of the Trust's common shares.

 Thank you for investing in Invesco

Value Municipal Income Trust and for sharing our long-term investment horizon.

† Standard & Poor's, Fitch Ratings, Moody's. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice.

indicates the debtor was not rated and should not be interpreted as indicating low quality. For more information on rating methodology, please visit spglobal.com, fitchratings.com and ratings.moodys.com.

Portfolio manager(s):

Josh Cooney*

Elizabeth Mossow*

*As of April 1, 2024

The views and opinions expressed in management's discussion of Trust performance are those of Invesco Advisers, Inc. and its affiliates. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Trust. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

pay-in

pay-in

Amount includes the effect of the Adviser

for an economic loss that occurred on October 4, 2023. Had the

not been made, the total retuwould have been lower.

 The performance data quoted represent past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ performance for the most recent

performance.

 Performance figures do not reflect deduction of taxes a shareholder would pay on Trust distributions or sale of Trust shares. Investment retuand principal value will fluctuate so that you may have a gain or loss when you sell shares.

About indexes used in this report

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Plan benefits

Who can participate in the Plan

If you own shares in your own name, your purchase will automatically enroll you in the Plan. If your shares are held in "street name" - in the name of your brokerage firm, bank, or other financial institution - you must instruct that entity to participate on your behalf. If they are unable to participate on your behalf, you may request that they reregister your shares in your own name so that you may enroll in the Plan.

How to enroll

If you haven't participated in the Plan in the past or chose to opt out, you are still eligible to participate. Enroll by visiting

by calling toll-free 800 341 2929 or by notifying us in writing at Invesco

Funds, Computer-share Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. If you are writing to us, please include the Trust name and account number and ensure that all shareholders listed on the account sign these written instructions. Your participation in the Plan will begin with the next Distribution payable after the Agent receives your authorization, as long as they receive it before the "record date," which is generally 10 business days before the Distribution is paid. If your authorization arrives after such record date, your participation in the Plan will begin with the following Distribution.

How the Plan works

If you choose to participate in the Plan, your Distributions will be promptly reinvested for you, automatically increasing your shares. If the Trust is trading at a share price that is equal to its NAV, you'll pay that amount for your reinvested shares. However, if the Trust is trading above or below NAV, the price is determined by one of two ways:

Costs of the Plan

There is no direct charge to you for reinvesting Distributions because the Plan's fees are paid by the Trust. If the Trust is trading at or above its NAV, your new shares are issued directly by the Trust and there are no brokerage charges or fees. However, if the Trust is trading at a discount, the shares are purchased on the open market, and you will pay your portion of any per share fees. These per share fees are typically less than the standard brokerage charges for individual transactions because shares are purchased for all participants in blocks, resulting in lower fees for each individual participant. Any service or per share fees are added to the purchase price. Per share fees include any applicable brokerage commissions the Agent is required to pay.

Tax implications

The automatic reinvestment of Distributions does not relieve you of any income tax that may be due on Distributions. You will receive tax information annually to help you prepare your federal income tax return.

 Invesco does not offer tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any taxpayer for avoiding penalties that may be imposed on the taxpayer under US federal tax laws. Federal and state tax laws are complex and constantly changing. Shareholders should always consult a legal or tax adviser for information concerning their individual situation.

How to withdraw from the Plan

You may withdraw from the Plan at any time by calling 800 341 2929, by visiting invesco.com/

or by writing to Invesco

Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be sure to include your Trust name and account number. Also, ensure that all shareholders listed on the account sign these written instructions. If you withdraw, you have three options with regard to the shares held in the Plan:

The Trust and Computershare Trust Company, N.A. may amend or terminate the Plan at any time. Participants will receive at least 30 days written notice before the effective date of any amendment. In the case of termination, Participants will receive at least 30 days written notice before the record date for the payment of any such Distributions by the Trust. In the case of amendment or termination necessary or appropriate to comply with applicable law or the rules and policies of the Securities and Exchange Commission or any other regulatory authority, such written notice will not be required.

 To obtain a complete copy of the current Dividend Reinvestment Plan, please call our Client Services department at 800 341 2929 or visit

Portfolio Composition

The Trust's holdings are subject to change, and there is no assurance that the Trust will continue to hold any particular security.

Data presented here are as of February 28, 2025.