Income Tax Rates (TRAIN Law) Level of Understanding and the Spending Preferences of Millennial Employees in Caraga State University

Abstract

The study determined the effects of the change in income tax rates brought by the TRAIN law on the millennial employees of Caraga State University. Specifically, this study determined the level of awareness of the employees regarding the income tax policy amendments, their spending preference where increased take-home pay is appropriated, and the relationship between the two variables. The study used a descriptive-correlational research design to determine the level of awareness, spending preference rank, and the relationship between the variables. Among the income tax provisions indicators, only tax exemption provisions were interpreted as moderately understood. On the other hand, the top-ranked expenditures are food, clothing, and medicines. The test for the relationship among the variables failed to reject the null hypothesis. Based on the descriptive results, the study recommends mainstreaming financial and taxation literacy seminars among millennial employees.