Independent editorial resource. Not affiliated with any employer, certification body, or professional association. Occupational data from the U.S. Bureau of Labor Statistics Occupational Outlook Handbook (2024–25 edition). Wages are U.S. national figures as of May 2023. CPA licensure requirements vary by U.S. state; always verify current rules with your state’s board of accountancy.
The CPA (Certified Public Accountant) is the most widely recognized professional credential in U.S. accounting. It is administered at the state level, which means requirements vary — but the core structure is consistent across all 55 U.S. jurisdictions (50 states plus D.C., Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands).
The three E’s: Education, Exam, and Experience
Every U.S. jurisdiction requires candidates to meet three core requirements before licensure:
1. Education
Most jurisdictions require 150 semester credit hours of education, with a specific concentration in accounting courses. A standard four-year bachelor’s degree is typically 120 credits, so most candidates need additional coursework — often a fifth year, a master’s in accounting (MAcc), or an MBA with accounting concentration. Some jurisdictions allow candidates to sit for the exam before reaching 150 hours but require the full 150 for licensure.
The number of accounting-specific credits required also varies by state, typically 24–30 credits in accounting subjects. Always check your specific state board’s current requirements — these change and state websites are the authoritative source.
2. Exam
The Uniform CPA Examination is developed by the American Institute of CPAs (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA). As of 2024, the exam has three core sections that all candidates must pass, plus one discipline section chosen by the candidate:
- Auditing and Attestation (AUD) — core, required
- Financial Accounting and Reporting (FAR) — core, required
- Regulation (REG) — core, required
- Business Analysis and Reporting (BAR) — discipline option (finance-focused)
- Information Systems and Controls (ISC) — discipline option (technology-focused)
- Tax Compliance and Planning (TCP) — discipline option (tax-focused)
Each section is scored on a scale of 0–99, with a passing score of 75. Candidates have 18 months to pass all four sections after passing their first. Sections may be retaken if failed. The exam is computer-based and offered at Prometric test centers as well as internationally in some jurisdictions.
3. Experience
Most jurisdictions require one to two years of supervised accounting experience under a licensed CPA. Some states accept experience in government, industry, or academia in addition to public accounting. The experience requirement is satisfied after passing the exam in most states, though some allow concurrent accumulation.
Ethics requirement
Many states also require passage of an ethics exam, typically the AICPA’s Professional Ethics: The AICPA’s Comprehensive Course, or a state-specific ethics exam. Check your jurisdiction’s requirements.
Maintaining licensure
CPA licenses require ongoing continuing professional education (CPE). Most states require 40 hours of CPE per year or 80 hours per two-year renewal cycle. Some CPE must cover ethics. Requirements vary by state and by whether you are in public practice or industry.
Does a CPA increase earning potential?
The BLS does not separately track wages for CPA holders versus non-CPA accountants. However, the CPA is widely associated with higher earning potential, particularly in public accounting where it is often required for promotion to manager and above. In industry, the CPA is frequently preferred for controller and senior accounting roles, and many employers pay a premium or provide a bonus upon licensure. AICPA and state CPA society surveys have historically shown CPA holders earning a premium over non-credentialed accountants, though these are member surveys with selection bias and should not be treated as precise wage data.
Frequently asked questions
How long does it take to get a CPA?
Most candidates take two to four years from starting exam prep to full licensure. The exam itself can be completed faster (some pass all four sections in 12–18 months), but satisfying the education and experience requirements determines the overall timeline. Candidates who need 150 credit hours and do not yet have them will spend time in graduate school first.
How much does the CPA exam cost?
Costs vary by jurisdiction and change periodically. As of 2024, candidates typically pay application fees, examination fees per section, and registration fees. The total is often in the range of $1,000–$3,000+ before adding review course costs. Check NASBA’s website and your state board for current fee schedules — we do not publish figures that may be stale.
Can you work as an accountant without a CPA?
Yes. Most staff accountant and senior accountant roles in industry do not require a CPA. The credential becomes more important at managerial levels and is nearly required in public accounting for audit work. Some roles — signing tax returns, performing attest services — legally require a CPA license in most jurisdictions.
Is the CPA harder than the bar exam?
Comparisons are difficult. The CPA exam covers a broad range of technical material across multiple sections. Pass rates for individual CPA exam sections have historically ranged from approximately 40–60 percent per attempt, though these vary by section and year. The difficulty is real, and most candidates use structured review courses and study for hundreds of hours total.