A Certified Public Accountant (CPA) license is the most recognized professional credential in accounting.
Earning it requires meeting specific education, examination, work experience, and ethics requirements set by individual state boards of accountancy.
While the exact requirements vary by state, the general path involves completing 150 college credit hours, passing all sections of the Uniform CPA Exam, accumulating one to two years of supervised accounting experience, and passing a state ethics exam.
According to the U.S. Bureau of Labor Statistics, accountants and auditors — including CPAs — held approximately 1.4 million jobs as of 2023, with the CPA credential typically associated with higher compensation and broader career options than non-licensed accounting roles.
For a full picture of the compensation side, our accountant salary guide covers the data in detail.
This guide walks through each requirement, the exam structure, and what to realistically expect at each stage of the process.
What Is a CPA?
A Certified Public Accountant is a licensed accounting professional who has satisfied the education, examination, experience, and ethics requirements of a U.S. state board of accountancy.
The license is issued at the state level — meaning each state sets its own specific requirements — but the core Uniform CPA Exam is standardized nationally and administered by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA).
The CPA designation confers several meaningful professional privileges:
- Authority to sign audit reports for public companies and organizations subject to external audit requirements
- IRS representation rights — the IRS recognizes CPAs as authorized practitioners who may represent clients in audits, appeals, and collection matters without restriction
- Enhanced credibility in public accounting, corporate finance, government, and nonprofit settings
- Access to senior roles at CPA firms (manager, director, partner) and corporate finance departments (controller, VP of Finance, CFO) that typically require or strongly prefer licensed CPAs
The CPA is distinct from other accounting credentials such as the CMA (Certified Management Accountant) or CIA (Certified Internal Auditor), which do not confer state-licensed status or audit-signing authority.
To understand the full scope of what the license enables, see our guide on what a CPA does in practice.
Step 1 — Meet the Education Requirements
Most states require 150 semester credit hours of college-level education to sit for the CPA exam or obtain a license — 30 credits more than a standard 120-credit bachelor's degree. This requirement is often referred to as the "150-hour rule."
Common paths to fulfilling the 150-credit requirement include:
- Bachelor's degree in accounting + Master of Accountancy (MAcc) or Master of Science in Taxation (MST) — the most direct route, combining an undergraduate accounting foundation with a specialized graduate program
- Bachelor's degree in accounting + MBA with accounting concentration — useful for those who also want broader business education
- Five-year integrated accounting program — some universities offer programs that combine the bachelor's and master's into a single five-year curriculum designed specifically to meet the 150-credit requirement
- Post-baccalaureate coursework — completing individual additional courses in accounting, business, or ethics after earning a bachelor's degree, without pursuing a full master's
Most states also specify minimum credit hours in accounting-specific subjects (financial accounting, auditing, taxation, managerial accounting) and in general business subjects.
The exact distributions vary by state, so candidates should verify requirements with their state board of accountancy before designing their education plan.
Education at an AACSB-accredited accounting program is generally well-regarded and may be required or preferred by certain employers, though it is typically not a universal state board requirement.
Our broader guide on how to become an accountant covers the full credential hierarchy, including non-CPA pathways.
Step 2 — Gain the Required Work Experience
Most states require one to two years of supervised accounting work experience under the direction of a licensed CPA before a license is issued. Some states allow candidates to sit for the exam before completing the experience requirement but will not issue the license until experience is fulfilled.
Qualifying experience typically includes work in:
- Public accounting (auditing, tax, advisory at a CPA firm)
- Private/corporate accounting (financial reporting, internal audit, tax compliance in a company's accounting department)
- Government accounting (federal, state, or local government agencies)
- Nonprofit accounting
The supervising CPA must typically hold an active license and attest that the candidate's work was performed at a professional accounting level.
Some states accept experience in non-traditional settings (e.g., academia or consulting) if it involves substantial accounting work, though this varies.
Candidates should confirm their state's specific definitions with the state board before assuming their employment will qualify.
Step 3 — Pass the CPA Exam
The Uniform CPA Exam is a standardized computer-based examination administered at Prometric testing centers nationwide. As of the 2024 CPA Evolution model update, the exam consists of three core sections (required of all candidates) and one discipline section of the candidate's choice.
Core Sections (Required of All Candidates)
- FAR — Financial Accounting and Reporting: Covers financial statements under GAAP, governmental accounting, nonprofit accounting, and financial statement analysis. Widely considered the most content-heavy section.
- AUD — Auditing and Attestation: Covers audit procedures, internal controls, professional ethics, and standards for auditing and other attestation engagements. Understanding what an auditor does is helpful context before sitting for this section.
- REG — Regulation: Covers federal taxation (individual, corporate, partnership, estate/gift), business law, and ethics. Significant overlap with IRS tax code provisions.
Discipline Sections (Choose One)
- BAR — Business Analysis and Reporting: Advanced financial reporting, data analytics, and financial planning and analysis. Suited for candidates pursuing public accounting or corporate finance careers.
- ISC — Information Systems and Controls: IT systems, data management, cybersecurity, and system and organization controls (SOC). Suited for candidates pursuing IT audit or advisory careers.
- TCP — Tax Compliance and Planning: Advanced individual and entity taxation, tax planning strategies, and tax research. Suited for candidates focused on tax-oriented careers.
Each section is scored on a 0–99 scale. A score of 75 or higher is required to pass each section. Once a candidate passes the first section, an 18-month testing window begins during which all remaining sections must be passed.
Sections not passed within the window must be retaken.
Step 4 — Apply for State Licensure
After passing all four CPA Exam sections and meeting the work experience requirement, candidates must formally apply for licensure through their state board of accountancy.
Most states also require passing an ethics exam as a condition of initial licensure — typically the AICPA's online Professional Ethics course, though some states have their own ethics requirements.
The state licensure application generally requires submitting:
- Official college transcripts confirming the 150-credit-hour and course distribution requirements
- CPA Exam score reports from NASBA
- Work experience verification from a supervising licensed CPA
- Ethics exam completion certificate
- Application fee and any required background disclosures
Once licensed, CPAs must complete continuing professional education (CPE) to maintain the license — typically 40 hours per year (or 80 hours per two-year period), including a specified number of hours in ethics.
CPE requirements vary by state.
Failure to meet CPE requirements can result in license suspension or lapse.
How Long Does It Take to Become a CPA?
The timeline from high school graduation to CPA licensure typically spans six to eight years, assuming full-time study and steady progress:
| Stage | Typical Duration |
|---|---|
| Bachelor's degree in accounting (4 years) + additional 30 credits (1 year) | 5 years |
| CPA Exam preparation and testing | 12–18 months (often overlaps with or immediately follows education) |
| Work experience requirement | 1–2 years (may overlap with exam preparation) |
Many candidates begin working at a CPA firm or in an accounting department while studying for exam sections, which allows the work experience and exam preparation timelines to overlap.
Some candidates who begin exam preparation during their final year of school and work at a CPA firm immediately after graduation may achieve licensure within five to six years of starting college — though this pace requires disciplined exam preparation alongside full-time work.
CPA Salary and Career Outlook
According to the 2024 BLS Occupational Employment and Wage Statistics for Accountants and Auditors (SOC 13-2011), the national median annual wage was $78,000.
CPAs with active licensure may typically earn a premium over non-licensed peers in the same roles — industry data and employer surveys suggest this premium is often in the range of 10–15%, though the actual difference varies significantly by employer, market, and role type.
This estimate should be treated as directional rather than definitive, as the BLS does not separately track CPA-licensed versus non-licensed accountants in OEWS data.
CPA salary by career stage (approximate ranges based on BLS OEWS percentile data and industry estimates):
| Career Stage | Typical Annual Salary Range |
|---|---|
| Staff / Entry-Level CPA Candidate | $47,000 – $65,000 |
| Senior Accountant / Newly Licensed CPA | $65,000 – $90,000 |
| Manager (Public Accounting or Corporate) | $90,000 – $125,000 |
| Senior Manager / Director | $110,000 – $155,000+ |
| Partner / CFO / Controller | $140,000 – $250,000+ |
Top-paying industries for CPAs include securities and financial services firms, management of companies and enterprises, and large public accounting firms.
Top-paying states, per BLS data, include New York, the District of Columbia, New Jersey, Virginia, and California — markets where the cost of living in New York or cost of living in California also tends to be significantly above national averages, so salary comparisons should account for purchasing power.
As CPA salaries grow, financial planning priorities like knowing how much to save for retirement and maximizing a Roth IRA become increasingly relevant.
The BLS projects 6% employment growth for accountants and auditors from 2023 to 2033, generating approximately 126,500 job openings per year from growth and replacement demand combined.
Frequently Asked Questions
Do I need a master's degree to become a CPA?
A master's degree is not universally required, but it is a common way to satisfy the 150 credit-hour requirement that most states impose for CPA licensure.
Some candidates fulfill the 150-hour rule through a five-year integrated bachelor's/master's program, while others take post-baccalaureate coursework without pursuing a full master's degree.
Whether a master's is the right path depends on your state's specific credit-hour and subject-area requirements, your career goals, and whether a graduate degree would provide value beyond fulfilling the minimum credit-hour threshold.
An academic advisor at an AACSB-accredited accounting program can help clarify your state's requirements.
Candidates who finance their education with loans should be aware that the student loan interest deduction may reduce taxable income during repayment — a relevant consideration when weighing the net cost of additional education to reach 150 credit hours.
For an overview of what the full credential unlocks, review what a CPA does in practice.
How hard is the CPA exam?
The CPA Exam is widely considered one of the more rigorous professional licensing examinations in the United States.
First-time pass rates for individual sections have historically ranged from approximately 45% to 60%, depending on the section.
The FAR section is generally regarded as the most content-intensive, while AUD and REG require deep knowledge of auditing standards and tax law, respectively.
Most candidates dedicate several hundred hours of study time across all four sections, typically using commercial review courses. The 18-month testing window creates additional pressure to pass sections in a strategic sequence.
Can I take the CPA exam before completing the 150 credit hours?
Policies vary by state.
Some states allow candidates to sit for the CPA Exam after completing only 120 credit hours (a standard bachelor's degree), then require the full 150 credit hours to be completed before the license is issued.
Other states require the full 150 hours before sitting for the exam.
Candidates should check their specific state board of accountancy's requirements, as the rules differ and change periodically.
What is the difference between a CPA and an Enrolled Agent (EA)?
Both CPAs and Enrolled Agents (EAs) are authorized to represent clients before the IRS, as described in IRS guidance on authorized tax professionals.
However, the credentials differ in scope and issuing authority.
The CPA is a state-issued license with broad application across all areas of accounting — audit, tax, financial reporting, consulting — and requires 150 credit hours of education, the CPA Exam, and work experience.
An EA is a federally licensed credential issued by the IRS specifically for tax practice, requiring passage of the Special Enrollment Examination (SEE) or former IRS employment. CPAs who also practice tax work may hold both credentials in some cases.
How much does it cost to become a CPA?
Total costs vary by state and educational path, but candidates should anticipate several categories of expense: CPA Exam application and section fees (which vary by state but commonly total $1,000–$1,500 for all four sections), commercial review course fees ($1,500–$4,000 depending on provider and format), and state licensure application fees (typically a few hundred dollars).
Education costs — whether a master's degree or post-baccalaureate coursework — represent the largest potential expense and vary widely by institution.
If you took out loans to fund your education, note that the student loan interest deduction may reduce your taxable income during repayment.
Ongoing CPE courses required for license renewal typically cost a few hundred dollars per year depending on provider and format.
Sources & References
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook — Accountants and Auditors, duties, pay, job outlook, and how to become one — https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics — Accountants and Auditors (SOC 13-2011), 2024 survey data — https://www.bls.gov/oes/current/oes132011.htm
- Internal Revenue Service — Enrolled Agent Information and IRS-Authorized Tax Professionals, describing CPA practice rights — https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information
- U.S. Department of Labor — Labor market and workforce information resources — https://www.dol.gov/
Last updated: April 27, 2026