Certified Public Accountant (CPA) Education Requirements: A Comprehensive Guide

Becoming a Certified Public Accountant (CPA) is a significant career milestone for accounting professionals. It signifies a high level of expertise, opens doors to greater career opportunities, and often leads to increased income potential. This article provides a detailed overview of the education requirements for CPA licensure, covering key aspects such as degree requirements, coursework, and the Uniform CPA Examination.

The Value of CPA Certification

Before diving into the specifics of CPA exam and licensure requirements, understanding the benefits of becoming a CPA is essential.

Enhanced Career Prospects

A CPA license extends beyond traditional tax work and financial management, paving the way for senior-level positions, advanced financial advising roles, and specialized areas like forensic accounting.

Increased Earning Potential

CPAs generally earn more than non-certified accountants due to their enhanced skills and experience. The average annual salary for CPAs is $92,795, exceeding the average salary for accountants, which is $61,480. It's important to acknowledge that factors such as experience, location, and specific job responsibilities also influence salary levels.

Elevated Trust and Recognition

Successfully passing the CPA Exam and obtaining a license demonstrates a deeper and more comprehensive understanding of complex accounting topics and their practical application. This, in turn, elevates trust and prestige in the professional arena.

The Three "E"s of CPA Licensure

To become a licensed CPA, candidates must generally fulfill three core requirements, often referred to as the "three E's": Education, Examination, and Experience.

Education

All states and jurisdictions mandate that CPA candidates hold a minimum of a bachelor's degree and have completed 150 total hours of college education. These hours can be accumulated at either the undergraduate or graduate level. Most states further specify a minimum number of hours in upper-level accounting and business coursework. For instance, Arizona requires 36 hours of accounting and 30 hours of business courses, while Virginia requires 24 hours of upper-level accounting courses and 24 hours of upper-level business courses.

To meet the 150-hour requirement, candidates can:

Earn a master's degree, such as an MBA or a Master of Accountancy (MAcc).
Take additional accounting or business courses.
Pursue a double major.
Take courses in supporting fields like IT or communications.
Utilize CLEP (College-Level Examination Program) exams to earn college credit.

Examination

CPA candidates are required to pass the Uniform CPA Examination, a comprehensive four-part exam that assesses the knowledge and skills necessary for newly licensed CPAs to practice public accounting. The exam includes three Core sections that evaluate foundational accounting knowledge and one Discipline section chosen by the candidate to demonstrate advanced knowledge in a specific area.

Experience

Most states require a minimum of one year of accounting work experience, or its equivalent. This experience can be gained in various settings, including government, industry, public accounting, or academia. The work should involve the use of accounting, attest, tax, consulting, or management or financial advisory skills. Some states may require more experience and specify how it must be verified. Indiana, for example, requires two years of accounting experience verified by an active CPA, while Minnesota requires a minimum of 2,000 hours of verified work experience within one to three years.

Read also: Learn about CPPLP Certification

Detailed Examination of Education Requirements

A cornerstone of CPA licensure is meeting the specific education requirements set forth by each state's Board of Accountancy.

Degree Requirements

Possessing a bachelor's degree from an accredited college or university is the first step. Some states may require the degree to be in accounting or a closely related field, such as business administration with an accounting concentration. The accreditation of the institution is crucial, with most states requiring accreditation by a regional or national accrediting organization recognized by the Board.

Credit Hour Requirements

While a bachelor’s degree typically entails 120 credit hours, most states mandate a total of 150 credit hours for CPA licensure. This additional coursework is designed to ensure that candidates have a well-rounded understanding of accounting principles and business practices. The extra 30 credit hours can be obtained through a master’s degree, additional undergraduate courses, or a combination of both.

Coursework Specifications

In addition to the overall credit hour requirement, states often specify the number of credit hours required in particular subjects:

Accounting: States usually require a minimum number of credit hours in accounting-related subjects, such as financial accounting, auditing, taxation, cost accounting, and accounting information systems. For example, Florida requires 24 hours in upper-level accounting.
Business: A certain number of credit hours in general business subjects are also typically required. These courses may include economics, finance, management, marketing, and business law. Florida also requires 24 hours in upper-level business.

State-Specific Regulations

It is essential to consult the specific requirements of the state in which you plan to become licensed. Regulations can vary significantly from one state to another. For example, 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. Some states may also have specific requirements regarding the types of courses that must be completed or the level at which they must be taken.

Read also: CFP Education Guide

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. It is always recommended to check 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.

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. It is recommended paying for one section at a time and receiving your NTS individually, so your NTS doesn't expire, causing you to forfeit your exam fees. This includes passing three Core sections which all candidates must take as well as passing one of three Discipline sections.

The Uniform CPA Examination

The Uniform CPA Examination is a standardized exam used by all states to assess the competency of CPA candidates. It is administered by the AICPA (American Institute of Certified Public Accountants) and NASBA (National Association of State Boards of Accountancy).

Exam Structure

The CPA Exam consists of four sections:

Auditing and Attestation (AUD): This section covers the general auditing process and responsibilities.
Financial Accounting and Reporting (FAR): This section focuses on financial statements and accounting standards.
Taxation and Regulation (REG): This section examines tax and business laws and ethics.
Discipline Section: Candidates must choose one of the following:
- Business Analysis and Reporting (BAR): Explores financial analysis, planning, and techniques.
- Information Systems and Controls (ISC): Tests on data and information systems management and security.
- Tax Compliance and Planning (TCP): Covers tax preparation, planning, and compliance.

Scoring

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. The AICPA scores exams from 0 to 99 and releases them every month or quarter, depending on the section.

Exam Pass Rates and Difficulty

The CPA exam is considered one of the most challenging professional exams. AICPA reported that the first two quarter pass rates in 2025 averaged about 42-62% for the three core sections, highlighting the difficulty of the CPA exam.

Ethics Examination

In addition to the Uniform CPA Examination, most states require candidates to pass an ethics exam. This exam covers topics from the AICPA Code of Professional Conduct and ensures that CPAs are familiar with ethical standards and responsibilities. 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.

Additional Requirements

Besides education, examination, and experience, some states may have additional requirements for CPA licensure.

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.

Residency and Citizenship

Some states don't require either proof of residency or citizenship within their CPA Exam requirements or licensure requirements. Some require citizenship but does require proof of state residency whether this is a physical residence, permanent place of business, or employment within the state. Some require citizenship, but not state residency.

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.

State-Specific Examples

To illustrate the diversity of CPA requirements, let's examine a few specific states:

California

Education: A baccalaureate degree or higher from an accredited institution. 150 total semester units including 24 semester units of accounting subjects, 24 semester units of business-related subjects, 20 semester units of accounting study subjects, and 10 semester units of ethics study.
Experience: A minimum of 12 months of general accounting experience.
Exam: Pass the Uniform CPA Exam. Effective July 1, 2024, the CBA no longer requires applicants to complete the PETH Exam for issuance of a CPA license. Instead, applicants need to complete a CBA-approved regulatory review course for their first license renewal.
Other: They must possess a valid United States Social Security Number or Individual Taxpayer Identification Number. All applicants must have a criminal background check conducted by the California Department of Justice and the Federal Bureau of Investigation.

Michigan

Education: You need 120 semester credits to sit for the CPA exam as a Michigan candidate and 150 credits for a CPA license. Your 150 credits must include at least 24 accounting credits and at least 24 general business credits.
Experience: You need at least 2,000 qualifying hours earned in no less than one year and no more than five years. A licensed CPA must supervise and document your work using Michigan’s CPA Experience Form.
Exam: Pass the Uniform CPA Exam. Michigan requires licensure candidates to pass all four exam sections within a rolling 30-month period, beginning on the date they pass the first exam section.
Other: Michigan has no specific age, Social Security number, citizenship, or state residency requirements, and you do not need to take the American Institute of Certified Public Accountants’ ethics examination.

Georgia

Education: A baccalaureate degree or higher conferred by a degree-granting college or university accredited by a national or regional accrediting organization recognized by the board, with a concentration in accounting or what the board determines to be the substantial equivalent of an accounting concentration, or with a non-accounting concentration supplemented by what the board determines to be the substantial equivalent of an accounting concentration, including related courses in other areas of business administration. After January 1, 1998, any person who has not previously sat for the uniform written examination for the certificate of certified public accountant must have completed a total of 150 semester hours or 225 quarter hours of college education, including a baccalaureate degree awarded by a college or university accredited by either a national or regional accrediting organization recognized by the board. The total educational program shall include an undergraduate accounting concentration and related courses in other areas of business administration or the substantial equivalent of the foregoing.
Experience: For applications received after June 30, 2009, applicants must have completed one year and 2,000 hours in public accounting; one year and 2,000 hours in business, industry, government or college teaching (teaching at a 4 year college or university in at least two different areas of accounting above the introductory or elementary level); or a combination of work experience in public accounting, business, industry, government or college teaching.
Exam: Pass the Uniform CPA Exam.
Other: All individual CPA licenses expire on December 31 of each odd-numbered year.

Maintaining Licensure

Once you have obtained your CPA license, it is essential to maintain it by meeting continuing education requirements and renewing your license periodically.

Continuing Professional Education (CPE)

Most states require CPAs to complete a certain number of CPE hours each year or reporting period. These hours must be in subjects relevant to accounting and auditing and are designed to ensure that CPAs stay up-to-date with the latest developments in the field. Michigan requires CPAs to complete at least 40 CPE hours annually between July 1 and June 30. Thirty of those hours can cover relevant topics of your choice, but eight hours must focus on accounting or auditing, and two hours must examine professional ethics.

License Renewal

CPA licenses typically need to be renewed every one to three years, depending on the state. Renewal usually involves paying a fee and attesting to the completion of the required CPE hours. To maintain your Michigan CPA license, you must renew it every other year by July 31. The renewal window opens annually on July 1. An additional $20 fee applies for late renewals on top of the regular $200 renewal fee.

Benefits of Becoming a CPA

The path to becoming a CPA is challenging, but the rewards can be substantial.

Career Advancement

CPA licensure can significantly enhance career prospects. CPAs are often sought after for management and leadership positions in accounting firms, corporations, government agencies, and non-profit organizations. Many CPAs transition into high-level positions after gaining experience in specialized accounting roles.

Higher Earning Potential

CPAs typically earn more than non-certified accountants. The increased earning potential is due to their specialized knowledge, skills, and the value they bring to their organizations.

Professional Recognition

CPA licensure is a mark of professional excellence. It demonstrates a commitment to ethical conduct, competence, and continuous learning.

Resources for CPA Candidates

Numerous resources are available to support CPA candidates throughout their journey:

State Boards of Accountancy: These boards provide detailed information on specific requirements for CPA licensure in each state.
AICPA (American Institute of Certified Public Accountants): The AICPA offers a wealth of resources, including exam preparation materials, career guidance, and professional development opportunities.
NASBA (National Association of State Boards of Accountancy): NASBA administers the Uniform CPA Examination and provides information on exam scheduling and scoring.
Accounting Schools and Universities: Accounting programs offer courses and resources to help students prepare for the CPA Exam.
Professional Organizations: Organizations like the American Accounting Association (AAA) connect job-seekers to some of the industry’s top employers and resources.
Job Boards: Accounting-specific job boards, such as Accounting Jobs Today, the AAA’s Career Center, AICPA Global Career Hub, and iHire Accounting, can help you find career opportunities.

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