How to Become a CPA in 2026: Complete Licensing Guide

Certified Public Accountants (CPAs) are among the most trusted financial professionals in the United States. Earning your CPA license opens doors to careers in public accounting, corporate finance, tax advisory, and forensic accounting. Across the 51 states we track, 51 require the standard 150 semester hours of education, and 47 require a separate ethics exam.

This guide covers everything you need to know about becoming a CPA in 2026 -- from the education and exam requirements to experience, licensing fees, and state-by-state differences.

What Does a CPA Do?

A CPA is a licensed accounting professional authorized to perform services that unlicensed accountants cannot, including signing audit reports, representing clients before the IRS, and attesting to financial statements. CPAs work in a range of settings:

• Public accounting firms: Auditing, tax preparation, consulting, and advisory services for businesses and individuals
• Corporate finance: Internal accounting, financial reporting, budgeting, and compliance for companies
• Government: Working for the IRS, GAO, state tax agencies, or other government bodies
• Forensic accounting: Investigating financial fraud, embezzlement, and disputes
• Self-employment: Running your own tax preparation, bookkeeping, or advisory practice

The CPA designation is widely considered the gold standard in accounting. It typically results in higher earning potential, greater career advancement opportunities, and professional credibility that opens doors across the financial industry.

The 3 E's of CPA Licensure

CPA licensure is built around three core requirements, commonly referred to as the "3 E's":

Step 1: Meet Education Requirements (150 Credit Hours)

The 150-credit-hour rule is the most significant educational barrier for aspiring CPAs. A standard bachelor's degree typically requires only 120 credit hours, so most candidates need an additional 30 hours. Common ways to meet the 150-hour requirement include:

• Master's degree in accounting (MAcc): The most common route. Typically adds 30+ credit hours beyond the bachelor's degree.
• MBA with accounting concentration: Combines business education with the additional credit hours needed.
• Double major or extra coursework: Some students take additional undergraduate courses in accounting, business, or related fields.
• Community college courses: A cost-effective way to earn the extra 30 credit hours at a lower tuition rate.

Most states also require a specific number of accounting and business-related credits within the 150 total hours. Common requirements include 24-36 hours of accounting courses and 24 hours of business courses.

States That Let You Sit for the CPA Exam Before 150 Credits

While you need 150 credit hours for full licensure, some states allow you to sit for the CPA Exam with only 120 credits (a bachelor's degree). This lets you start passing exam sections while completing the additional education. These 41 states currently allow early sitting:

Step 2: Pass the Uniform CPA Exam

The CPA Exam is a standardized, computer-based exam administered by the AICPA (American Institute of Certified Public Accountants) and delivered at Prometric testing centers nationwide. As of 2024, the exam follows the new CPA Evolution model with three core sections and one discipline section:

• AUD (Auditing and Attestation): Covers audit procedures, attestation engagements, ethics, and professional responsibilities.
• FAR (Financial Accounting and Reporting): Tests knowledge of financial statements, GAAP, government accounting, and not-for-profit accounting.
• REG (Taxation and Regulation): Covers federal taxation (individuals, entities), business law, and ethics.
• Discipline section (choose one): BAR (Business Analysis and Reporting), ISC (Information Systems and Controls), or TCP (Tax Compliance and Planning).

Each section requires a minimum passing score of 75 out of 99. You must pass all four sections within an 18-month rolling window. Most candidates spend 300-400 hours total studying and take 12-18 months to complete all sections.

Step 3: Complete Work Experience

After passing the exam, most states require supervised work experience under a licensed CPA before granting full licensure. The average requirement across all states is approximately 1,986 hours of qualifying work experience. Key points about the experience requirement:

• Supervision: Your experience must be supervised and verified by an active, licensed CPA.
• Qualifying work: Generally includes accounting, auditing, tax, financial advisory, and related services. Some states accept experience in government or industry accounting.
• Duration: Most states require 1-2 years of full-time work. Part-time experience is allowed in most states but extends the timeline.
• Timing: Some states allow you to accumulate experience before, during, or after passing the exam. Others require experience only after passing.

Step 4: Pass the Ethics Exam

47 of 51 states require candidates to pass a separate ethics exam as part of the CPA licensing process. The most common is the AICPA Professional Ethics for CPAs exam, which is a self-study course followed by an open-book exam. It typically covers:

• AICPA Code of Professional Conduct
• Independence, objectivity, and integrity
• Responsibilities to clients and the public
• State-specific ethics regulations (in some states)

States Requiring an Ethics Exam

Step 5: Apply for Your License

With education, exam, experience, and ethics requirements complete, you submit your license application to your state board of accountancy. The application typically requires:

1. Official transcripts showing 150 credit hours with required coursework
2. CPA Exam score reports showing passing grades on all four sections
3. Experience verification signed by your supervising CPA
4. Ethics exam completion certificate (if required by your state)
5. Background check and/or fingerprinting (required in many states)
6. Application fee payment

Processing times range from 2-12 weeks depending on the state. Once approved, you receive your CPA certificate and license number, allowing you to use the "CPA" designation and perform licensed services.

State-by-State CPA Requirements

The table below summarizes key CPA requirements across all 51 states we track. Click any state for the full breakdown.

CPA Mobility and Substantial Equivalency

CPA mobility refers to the ability of a CPA licensed in one state to practice in another state without obtaining an additional license. Currently, 51 of 51 states participate in mobility agreements through the Uniform Accountancy Act. If your home state and the practice state both have mobility provisions, you can serve clients across state lines without additional paperwork.

Substantial equivalency is the basis for mobility. A state's CPA requirements are considered substantially equivalent to the UAA model if they include 150 hours of education, passing the CPA Exam, and at least one year of experience. CPAs from substantially equivalent states can practice in other participating states through practice privilege.

States with CPA Mobility

States with Substantial Equivalency

Continuing Professional Education (CPE)

All states require CPAs to complete continuing professional education (CPE) to maintain their license. Requirements vary by state but typically include:

• CPE hours: Most states require 40 hours per year or 80 hours per two-year renewal cycle
• Ethics CPE: Many states require a portion of CPE hours to be in ethics or professional conduct
• Subject areas: Accounting, auditing, taxation, advisory, and ethics are common qualifying topics
• Delivery methods: In-person seminars, webinars, self-study courses, and college coursework are generally accepted

Frequently Asked Questions

How long does it take to become a CPA?

From the start of a bachelor's degree, expect 5-7 years: 4 years for a bachelor's, 1-2 years for the additional 30 credit hours (often through a master's program), plus 1-2 years of supervised work experience. The CPA Exam itself takes most candidates 12-18 months to complete. Some of these steps can overlap.

How much does it cost to become a CPA?

Total costs include CPA review courses ($1,500-$3,500), exam fees ($1,000-$1,500 for all four sections), application and licensing fees (averaging $1157 in government fees), and education costs. Exam review courses are the largest non-tuition expense.

Can I take the CPA Exam without 150 credit hours?

Yes, in 41 states you can sit for the CPA Exam with 120 credit hours (a bachelor's degree). However, you will still need 150 hours for full licensure. This approach lets you start passing exam sections while completing your remaining education.

What is the CPA Exam pass rate?

Pass rates vary by section but generally range from 45-60% for first-time test-takers. FAR (Financial Accounting and Reporting) typically has the lowest pass rate, while BEC/discipline sections tend to have slightly higher rates. Adequate preparation with a structured review course significantly improves your chances.

Can I be a CPA with a criminal record?

It depends on the state and the nature of the offense. Most state boards evaluate applicants on a case-by-case basis. Felonies involving fraud, dishonesty, or financial crimes are more likely to be disqualifying. Many states allow applicants to petition the board before applying.

What is the difference between a CPA and an accountant?

Anyone can call themselves an "accountant," but only those who have met state licensing requirements can use the "CPA" designation. CPAs can perform audits, sign tax returns as paid preparers, represent clients before the IRS, and issue attestation reports -- services that unlicensed accountants cannot provide.

Next Steps

Click any state in the table above to see its complete CPA requirements. Each state page includes detailed information on education requirements, exam procedures, experience criteria, fees, and renewal processes.

Sources

Education, exam, experience, and fee data are sourced from official state boards of accountancy and the AICPA.

• Individual state board of accountancy websites (cited on each state page).
• AICPA (American Institute of Certified Public Accountants) -- aicpa-cima.com
• NASBA (National Association of State Boards of Accountancy) -- nasba.org
• Prometric -- CPA Exam testing center information and scheduling.

Data was last verified in February 2026. Requirements can change as states update their regulations. Always confirm current requirements with your state's board of accountancy before beginning the licensing process.