The 150 credit hour requirement is one of the most talked-about hurdles on the path to CPA licensure. If you earned a standard four-year bachelor's degree, you likely have around 120 semester hours, which means you need to find a way to earn an additional 30 hours. This guide explains what the requirement means, how different states handle it, and the most practical and affordable ways to close the credit gap.
What the 150-Hour Requirement Actually Means
The 150 semester hour requirement means that you need to have completed 150 semester hours (or the quarter-hour equivalent) of college-level education from an accredited institution. This is 30 hours more than a typical bachelor's degree provides.
Importantly, the 150 hours do not have to be in accounting. Most states simply require a total of 150 hours of college education, with a specified minimum number of those hours in accounting and business courses. The remaining hours can be in virtually any subject.
The requirement was established to ensure that CPA candidates have a broader educational foundation before entering the profession. The additional coursework is intended to provide depth in accounting topics and breadth in general education.
150 Hours to Sit vs. 150 Hours to License
This is a critical distinction that trips up many candidates. Different states apply the 150-hour rule at different points in the process:
States Requiring 150 Hours to Sit for the Exam
Some states, including New York, Texas, and Florida, require you to have completed 150 hours before you can even apply to take the CPA exam. In these states, you cannot begin testing until your education is fully complete.
States Requiring 150 Hours Only for Licensure
Other states, including California, Colorado, and several others, allow you to sit for the CPA exam with just 120 hours (and the required accounting coursework), as long as you complete the full 150 hours before applying for your CPA license. This is a significant advantage because it allows you to start testing while you are still completing your additional education.
If you are in a state that allows testing at 120 hours, you can begin the exam process immediately after earning your bachelor's degree and work on the remaining credits concurrently. This can shave months off your total timeline to licensure.
Ways to Earn Extra Credits
If you need to bridge the gap between 120 and 150 hours, you have several options. Here they are, roughly ordered from most to least common:
1. Master's Degree Program
Enrolling in a master's program, such as a Master of Accountancy (MAcc) or MBA, is the most traditional route to 150 hours. A master's program typically adds 30 to 36 credit hours, which satisfies the requirement neatly.
- Pros: Provides an additional credential, deeper knowledge, potential networking opportunities, and access to recruiting events
- Cons: Most expensive option (typically $15,000 to $60,000 or more), time-intensive (1 to 2 years), and may not be necessary for your career goals
A master's degree makes the most sense if you want the credential itself, not just the credit hours. If you are simply trying to meet the 150-hour requirement as efficiently as possible, other options may serve you better.
2. Community College Courses
Taking courses at a local community college is one of the most cost-effective ways to earn additional credits. Community college tuition is typically a fraction of university tuition, and many offer flexible scheduling including evening and weekend classes.
- Pros: Very affordable (often $50 to $150 per credit hour), flexible scheduling, wide course availability
- Cons: Some state boards may not accept all community college courses, particularly if they are below a certain level. Verify with your state board before enrolling.
Since the extra hours do not need to be in accounting, you can take any accredited courses that interest you: foreign languages, computer science, art history, whatever appeals to you. The key is that the credits come from an accredited institution.
3. Online Courses From Accredited Institutions
Many accredited universities offer online courses that count toward the 150-hour requirement. This is an excellent option for working professionals who need scheduling flexibility.
- Pros: Flexible scheduling, no commute, often self-paced, many affordable options available
- Cons: Requires self-discipline, some state boards may scrutinize online-only credits more closely, and costs vary widely by institution
Some popular online options include courses through state university extension programs, FEMA courses (yes, some count for credit), and accredited online programs from institutions like Brigham Young University-Idaho and other schools known for affordable online education.
4. CLEP Exams
The College-Level Examination Program (CLEP) allows you to earn college credit by passing standardized exams. If you have knowledge in a subject area, you can potentially earn 3 to 6 credits per exam at a fraction of the cost of a college course.
- Pros: Fast (exams can be taken at almost any time), inexpensive (approximately $90 per exam), and you can potentially earn many credits quickly
- Cons: Not all state boards accept CLEP credits, and not all colleges will grant credit for CLEP exams. Verify acceptance with both your state board and the institution that will record the credits on your transcript.
5. Additional Undergraduate Courses
If you are still enrolled in your undergraduate program or recently graduated, you may be able to take additional courses at your university to reach 150 hours. Some universities offer a "fifth year" or "150-hour track" specifically designed for CPA candidates.
6. Post-Baccalaureate Certificate Programs
Some universities offer post-baccalaureate certificate programs in accounting that provide the additional hours needed. These programs are typically shorter and more focused than a full master's degree but provide structured accounting coursework that satisfies state board requirements.
Which Credits Count?
The specific rules about which credits count toward the 150-hour requirement vary by state, but here are general guidelines:
- Credits must come from an accredited institution (regional accreditation is most widely accepted)
- The specified minimum accounting and business hours must typically come from upper-division courses
- General elective hours to fill the gap to 150 can usually be any subject at any level
- Transfer credits are generally accepted if they appear on an official transcript from an accredited school
- Some states accept CLEP credits while others do not
- Continuing professional education (CPE) credits typically do not count toward the 150-hour requirement
Cost Comparison
Here is a rough comparison of what it might cost to earn 30 additional credit hours through various methods:
- Master's degree: $15,000 to $60,000 or more
- Community college courses: $1,500 to $4,500
- Online university courses: $3,000 to $15,000
- CLEP exams (if accepted): $450 to $900 for 5 to 10 exams
- Fifth-year undergraduate: $5,000 to $20,000 depending on the institution
The cost difference is dramatic. A candidate who earns their extra 30 hours through community college courses might spend $3,000, while a candidate who pursues a master's degree might spend $40,000. Both can end up with the same CPA license. Your choice should depend on your career goals, financial situation, and whether the additional credential of a graduate degree is valuable to you beyond meeting the 150-hour requirement.
Strategic Approach
Here is the approach we recommend for most candidates:
- Check your state board's specific requirements for both sitting for the exam and licensure
- Count your existing credits and identify the gap
- Determine whether your state allows testing at 120 hours. If so, start the exam process immediately.
- Choose the most cost-effective method to earn remaining credits that your state board will accept
- Complete your additional education while you study for and take the exam
- Compile all transcripts and documentation for your license application
The 150-hour requirement is a box to check, not a mountain to climb. With a little planning, you can meet it affordably and without significant delay to your CPA timeline.
While the 150-hour requirement is about education, passing the CPA exam is about preparation. Think CPA focuses on the preparation side, giving you structured study materials designed to help you pass each section efficiently. Let us handle the exam prep while you handle the credit hours, and together we will get you to your CPA license.