Becoming a CPA in the United States means clearing four gates set by your state board of accountancy: college education, the Uniform CPA Examination, supervised work experience, and an ethics assessment. CPA requirements vary by state in the details — course distributions, when you can sit for the exam, which ethics test counts, how long your passing scores stay valid, and the fees — but the overall structure is consistent nationwide because almost every board follows a common model. The traditional path takes 150 semester hours of college credit, a passing score on each of the four exam sections, roughly one year of supervised experience, and an ethics exam. A newer alternative, approved in 2025, lets candidates license with 120 hours and two years of experience, but only in states that pass legislation to adopt it.1NASBA. New CPA Licensure Pathways and CPA Mobility
Education: Credits and Course Mix
The headline number is 150 semester hours of college-level work, which is 30 more than a standard bachelor’s degree. Most candidates close the gap with a master’s in accounting, an MBA, or additional undergraduate coursework.
Hours alone aren’t enough. Boards typically require 24 to 30 semester hours in accounting subjects — financial reporting, auditing, taxation, cost accounting — and another 24 to 30 hours in general business coursework like economics, finance, business law, and information systems. The common failure point isn’t the total; it’s a missing subject. Governmental accounting trips candidates up regularly, and a single missing course can get an application rejected.
Graduates of accredited accounting master’s programs often get automatic credit for the subject-matter requirements. Candidates applying with only a bachelor’s degree face a course-by-course transcript evaluation to confirm every credit lines up with what the board demands.
The Three Pathways to a License
The model law now recognizes three routes to licensure:1NASBA. New CPA Licensure Pathways and CPA Mobility
- A graduate degree in accounting plus one year of experience and a passing CPA Exam score.
- A bachelor’s degree plus 30 additional credit hours (150 total), one year of experience, and a passing CPA Exam score.
- A bachelor’s degree in accounting (120 semester hours), two years of experience, and a passing CPA Exam score.
The 120-hour pathway is new. AICPA and NASBA approved it as model legislation to address a decline in people entering the accounting profession.2AICPA & CIMA. AICPA and NASBA Approve Model Legislation for New CPA Licensure Path It only applies if your state has enacted it, and implementation dates vary. Check with your board before planning around it.
The CPA Exam: Sections, Scores, and the Credit Clock
Since January 2024, the Uniform CPA Exam has had three core sections and one discipline section the candidate chooses. The core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The discipline options are Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).3AICPA & CIMA. Learn More About CPA Exam Scoring and Pass Rates The discipline choice lets you signal a specialty early.
You need a 75 on each section to pass.3AICPA & CIMA. Learn More About CPA Exam Scoring and Pass Rates When you can start testing is a state-by-state question. Many boards let you sit for the exam at 120 semester hours, so you can test while finishing a master’s or your remaining undergraduate credits. Other boards require all 150 hours before issuing a Notice to Schedule. That difference reshapes your whole timeline, so confirm your state’s rule before building a study plan.
Once you pass your first section, a credit clock starts. NASBA’s model rule now gives candidates 30 months from the score release date to pass the remaining sections, replacing the older 18-month window.4AICPA & CIMA. CPA Exam Credit Extension Deadline in June 2025 Not every state has adopted the 30-month version; some have to go through their own rulemaking process.5NASBA. Three Different Credit Extensions Happening Now If your oldest passing score expires before you finish, that credit is gone and you have to retake the section. This is where most candidates who give up fall off.
Costs add up. Each section’s examination fee runs roughly $260 to $270, putting the four-section total around $1,050. State boards tack on application or registration fees typically ranging from $50 to $400. Add ethics exam costs, study materials, and the license application itself, and the full journey usually runs $3,000 to $7,000.
Ethics Exam: AICPA or State-Specific
After passing all four sections, most boards require a separate ethics assessment. The standard option is the AICPA Professional Ethics exam, an open-book test on the Code of Professional Conduct and independence rules. You need 90% or higher to pass.6AICPA & CIMA. Professional Ethics: The American Institute of Certified Public Accountants Comprehensive Course (For Licensure) AICPA itself warns that many states don’t accept its course, so verify with your board before buying it.
Some states require their own ethics exam, typically focused on that state’s accountancy act, board rules, and disciplinary procedures. These state-specific tests can cover firm ownership restrictions, client confidentiality, and penalties for misconduct. Missing the deadline to complete your ethics requirement after passing the main exam can delay licensure by months.
Experience: Hours, Supervision, and Attest vs. Non-Attest
Passing the exam shows you know the material. The experience requirement shows you can apply it. Most jurisdictions require one year of full-time work, generally defined as at least 2,000 hours. A CPA with an active license in good standing must supervise and verify your work. The supervisor signs off on specific competencies — risk assessment, financial reporting, professional judgment — not just hours.
What you do during that year can shape the license you receive. Many states distinguish general accounting experience from attest experience, meaning time spent on audits, reviews, or other assurance engagements. Candidates without enough attest hours may get a license that bars them from signing audit reports. If you want full attest privileges, plan your early assignments accordingly.
Qualifying settings generally include public accounting firms, corporate accounting departments, and government agencies. Some boards also count teaching upper-level accounting at an accredited institution. If you take the new 120-hour pathway, the experience requirement doubles to two years, which may still be worth it compared with the cost of an extra 30 credit hours.1NASBA. New CPA Licensure Pathways and CPA Mobility
Applying to Your State Board
With education, exam, experience, and ethics behind you, the last step is a formal application to your state board of accountancy. Most boards use an online portal where you submit employment history, proof of residency, and personal information. Official transcripts must go directly from the university’s registrar to the board; you can’t hand-carry them.
Many states require a criminal background check, usually through electronic fingerprinting. Initial license application fees generally run from $50 to about $400. Between board review and background check processing, expect four to twelve weeks for approval. Once the board signs off, you receive a certificate and license number authorizing you to use the CPA designation.
International candidates have one extra step: a credential evaluation confirming that foreign education meets U.S. equivalency standards.7NASBA. International Credential Evaluation for CPA Examination and/or Licensure Some states also require a U.S. Social Security Number or state-issued equivalent, which can be a barrier for foreign nationals who don’t yet have work authorization.
Practicing Across State Lines
All 55 U.S. accountancy board jurisdictions are now considered substantially equivalent, meaning each recognizes that the others’ licensing standards meet a common baseline.8NASBA. Substantial Equivalency Under the mobility framework nearly every jurisdiction has adopted, a CPA in good standing can serve clients in another state without getting a second license, filing notice, or paying a fee. You remain subject to the disciplinary authority of every state where you practice.
Mobility has limits. If you relocate your primary place of business to a new state, you generally need a reciprocal license there. The reciprocal application requires proof that you passed the CPA Exam, hold an active license elsewhere, and meet the new state’s experience requirements. Fees and processing times vary, so build in lead time before a move.
Keeping the License: CPE and Peer Review
Every state requires Continuing Professional Education to keep an active license. The standard works out to roughly 40 CPE hours per year, though reporting cycles differ — some annual, others biennial or triennial. Falling behind can push your license into lapsed or inactive status, which bars you from signing off on work or using the CPA title until you catch up.
Most states carve out some of those hours for ethics specifically, commonly four hours per renewal period covering the code of conduct, real-world ethical dilemmas, and professional responsibilities. Renewal fees typically run $50 to $400 depending on the jurisdiction and cycle length.
CPAs who open their own firms and perform audits, reviews, or other attest services face an additional obligation: peer review. A qualified outside practitioner evaluates the firm’s work quality every three years. Peer review is a statutory requirement across all 55 licensing jurisdictions for firms performing attest services, and AICPA membership carries the same mandate. Firms limited to tax preparation or consulting are generally exempt.