CPA Exam requirements
Getting your CPA license is a great way to improve your career options and income potential. But how do you achieve this goal? To help you plan out your next steps, we're providing you with an overview of both the CPA Exam requirements and what you'll need to do to obtain your license after you pass.
CPA Exam requirements by state
Each state has individual requirements to sit for the exam and get licensed. Choose your state from the list below to find the specific CPA requirements you'll need to meet.
Why take the CPA Exam?
Before we dive into an overview of the CPA Exam and licensure requirements, let's look at some of the benefits of taking the exam and obtaining your CPA license.
Greater career opportunities
In addition to tax work and financial management, having a CPA license can open doors to senior-level positions, higher-level financial advising, and specializations like forensic accounting.
Increased income potential
Because of their additional skills and experience, CPAs earn an average of $92,795 per year, compared to the average salary for accountants of $61,480. It's important to note that experience, location, and role also affect salary.
Increased trust and prestige
Passing the CPA Exam and earning your license proves that you have deeper knowledge and understanding of the more technical or complex accounting topics and know how to apply them.
Take the next step: Your accounting career path
CPA requirements
To meet your state's Certified Public Accountant requirements, you must fulfill education and experience minimums and pass the CPA Exam. Some states also have requirements related to ethics, residency, and age. Again, while every state is different, learn the minimum recommendations below.
The three E's of CPA licensure | ||
Experience | Education | Examination |
A minimum of one year of accounting work verified by a licensed CPA | A bachelor's degree and a total of 150 hours of post-secondary education | Pass four sections of the CPA Exam - Three Core sections and one Discipline |
Education
All states and jurisdictions require CPAs to have a minimum of a bachelor's degree and 150 total hours of college education, either at the undergraduate or graduate level. Most states also require a specific number of hours in upper-level accounting and business coursework. For example, Arizona requires 36 hours of accounting and 30 hours of business while Virginia requires 24 hours of upper-level accounting courses and 24 hours of upper-level business courses.
To earn the additional hours beyond a bachelor's degree, CPA candidates may choose the following:
- Earn a master's degree, often an MBA or a master's in accounting (MAcc)
- Take additional accounting or business courses, or pursue a double major
- Take courses in supporting topics like IT or communications
- Take CLEP (college-level examination program) exams, which allow you to earn college credit by passing an exam
Experience
CPA candidates must have a minimum of one year of work experience, or the equivalent, in accounting, though some states do require more. Eligible experience may include working in government, industry, public accounting, or academia involving the use of accounting, attest, tax, consulting, or management or financial advisory work.
The specific experience work requirement varies from state to state. For example, Indiana requires two years of accounting experience verified by an active CPA. Arkansas requires one year of experience, and Minnesota candidates must have a minimum of 2,000 hours of verified work experience in no less than one year and no more than three years.
Exam
All CPA candidates must pass the Uniform CPA Examination, a four-section exam designed to evaluate the knowledge and skills needed for a newly licensed CPA to practice public accounting. To pass the exam, candidates must pass three Core sections that assess foundational accounting knowledge. Candidates must also choose and pass one of three discipline sections that assess more advanced knowledge in a specific area of accounting.
Ethics
Most states also need candidates to take an ethics exam covering topics from the AICPA Code of Professional Conduct as part of their CPA license requirements. In most cases, you're required to pass the open-book ethics exam, often with a score of at least 90%, within a year or two of passing the CPA Exam.
While many states require only the AICPA's ethics exam, some, like Virginia and Ohio, require a state-specific ethics course and exam. On the other hand, Pennsylvania, Kentucky, and Michigan are among the states that don't include an ethics exam as part of their CPA license requirements.
Residency and citizenship
Most states require residency or U.S. citizenship to take the CPA Exam. However, some states, such as Alaska, don't require either proof of residency or citizenship within their CPA Exam requirements or licensure requirements. On the other hand, Idaho does not require U.S. citizenship but does require proof of state residency whether this is a physical residence, permanent place of business, or employment within the state. North Carolina requires proof of U.S. citizenship, but not state residency. Again, it's important to look at your state to see what you need.
Age
Most states and territories don't have minimum age requirements in place. In those that do, the minimum age is almost always 18, though you must be 21 in New York and Missouri to take the exam and obtain your CPA license.
CPA Exam requirements — Sitting for the exam
While the individual states have CPA Exam requirements you'll need to meet before applying, each CPA candidate must follow roughly the same steps to take the exam.
Education requirements
Most states require CPA candidates to either have their bachelor's degree, often in accounting or business, be near their graduation date, or have a minimum of 120 college hours to sit for a section of the CPA Exam. Also, most states require candidates to complete 24 to 30 hours in accounting and 24 hours in business- related subjects.
For example, Florida's CPA Exam requirements include having 120 hours of college credit, consisting of 24 hours in both upper-level accounting and upper-level business. Texas candidates must have a bachelor's degree with a minimum of 21 hours of upper-level accounting and 24 hours of upper-level business courses.
We always recommend checking with your state's board of accountancy to ensure you meet the education requirements prior to applying for the CPA Exam.
Eligibility and application
After verifying you meet your state's eligibility, you need to apply to sit for the CPA Exam with your state's board of accountancy.
- Submit your school transcripts
- Provide proof of residency if your state requires it
- Fill out and submit the CPA Exam application and pay any application fees
When you submit the necessary documents, it usually takes between four and six weeks to get approved and receive an Authorization to Test.
Take the next step: Applying for the CPA Exam
Scheduling the exam
Once you're authorized to sit for the CPA Exam, you can sign up for the exam by logging into your NASBA account and paying the exam fees. You'll then receive your Notice to Schedule (NTS) document. We recommend paying one at a time and receiving your NTS individually, so your NTS doesn't expire, causing you to forfeit your exam fees. You don't have to wait for one to end before applying for another, but you have more control over how you pace and schedule your exams.
Take the next step: CPA Exam fees and costs
Once you have your NTS, verify the information, and register on the Prometric website in the following steps:
- Schedule your CPA Exam with Prometric
- Enter your exam section ID from your NTS and include the first four letters of your last name
- Choose the exam section, exam location center, and the date you want to schedule
Make sure you print and keep your NTS because you have to have this with you at the Prometric testing center to take the CPA Exam.
CPA Exam requirements — Passing the exam
As mentioned above, all CPA candidates must pass the CPA Exam. This includes passing three Core sections which all candidates must take as well as passing one of three Discipline sections.
CPA Exam sections
The three Core sections are:
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Taxation and Regulation (REG)
The three Discipline sections are:
- Business Analysis and Reporting (BAR)
- Information Systems and Controls (ISC)
- Tax Compliance and Planning (TCP)
Take the next step: Choose your CPA Exam Discipline
CPA Exam scores
All CPA candidates must receive at least a 75 on the three core sections and one Discipline section in order to pass the CPA Exam. Depending on your state, you have a minimum of 18 months to pass all four sections of the CPA Exam.
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