One of the most confusing aspects of the CPA journey is figuring out what your specific state requires. While the CPA exam itself is the same across all jurisdictions, the requirements to sit for the exam, and the requirements to earn your license afterward, vary significantly from state to state. Understanding these differences early can save you months of frustration and thousands of dollars in unnecessary coursework.
The Universal Requirements
Before diving into state-specific differences, let us cover what almost every state has in common:
- U.S. citizenship is not required: Most states allow non-citizens to sit for the exam, though some have residency or employment requirements
- A bachelor's degree is required: Every state requires at least a four-year degree from an accredited institution
- Accounting coursework: All states require a minimum number of accounting credit hours, though the exact number varies
- Passing all four exam sections: A score of 75 or higher on each section within the 30-month rolling window
The 150 Credit Hour Rule
The single most impactful requirement for most candidates is the 150 semester hour education requirement. Most states require 150 semester hours of college education for CPA licensure, which is 30 hours beyond a typical four-year bachelor's degree of 120 hours.
However, there is a crucial distinction that many candidates miss: some states require 150 hours to sit for the exam, while others require 150 hours for licensure but allow you to sit for the exam with only 120 hours. This distinction matters enormously for your planning.
States That Allow You to Sit With 120 Hours
Several states allow candidates to sit for the CPA exam after completing a bachelor's degree with the required accounting coursework, even if they have not yet reached 150 hours. This means you can begin taking the exam while completing your remaining credits. These states include Colorado, Montana, Maine, and several others. Always verify with your specific state board, as policies can change.
States That Require 150 Hours to Sit
Other states require the full 150 hours before you can even apply for the exam. If you are in one of these states and are short on credits, you will need to complete additional coursework before beginning the exam process.
Education Requirements: Beyond Credit Hours
Most states specify not just a total number of credit hours but also specific coursework requirements:
- Accounting hours: Typically 24 to 36 semester hours of accounting courses, including specific subjects like auditing, taxation, and financial accounting
- Business hours: Many states require 24 to 36 hours of business-related courses (economics, finance, management, business law)
- Ethics coursework: Some states require specific ethics courses as part of your academic program
- Upper-division requirements: Some states specify that a certain number of accounting hours must be upper-division (300-level or above)
Experience Requirements for Licensure
Passing the CPA exam is not the same as becoming a licensed CPA. Most states require professional experience under the supervision of a licensed CPA before they will grant your license:
- Duration: Most states require 1 to 2 years of experience, with some requiring as few as 1,800 hours and others requiring 2,000 or more
- Type of experience: Some states accept only public accounting experience, while others accept any accounting experience under CPA supervision
- Verification: Your supervising CPA must typically sign off on your experience, confirming the nature and quality of your work
Ethics Exam Requirements
Many states require candidates to pass an ethics exam in addition to the four CPA exam sections. The most common is the AICPA Professional Ethics for CPAs exam, which is a self-study course followed by an online examination. Some states have their own state-specific ethics exams.
The ethics exam is typically not difficult. Most candidates complete the self-study material and pass the exam in a few hours. However, it is an additional step you need to plan for, and some states require it before you can apply for licensure.
Popular State Comparisons
Let us look at how requirements differ across some of the most popular states for CPA candidates:
California
- Requires 150 hours for licensure but allows exam sitting with 120 hours plus specific accounting coursework
- Requires 24 semester hours of accounting subjects and 24 hours of business-related subjects
- Requires 1 year (2,000 hours) of general accounting experience
- Requires a separate California-specific ethics exam
- One of the most popular jurisdictions for CPA candidates
New York
- Requires 150 hours to sit for the exam
- Requires 33 semester hours of accounting coursework
- Requires 1 year of experience for licensure
- Accepts a broader range of experience types than some states
- Has specific requirements for educational program registration
Texas
- Requires 150 hours with specific coursework to sit for the exam
- Requires 30 hours of upper-level accounting courses
- Requires 24 hours of upper-level business courses
- Requires a board-approved ethics course
- Requires 2 years of experience under a CPA for licensure
Florida
- Requires 150 hours to sit for the exam
- Requires 36 semester hours of accounting courses above the introductory level
- Requires 1 year of experience for licensure
- Does not have a separate state ethics exam requirement
- Is a popular choice for candidates due to no state income tax
Illinois
- Requires 150 hours to sit for the exam
- Requires 30 hours of accounting and 24 hours of business courses
- Requires 1 year of experience for licensure
- Has reciprocity agreements with many other states
- Allows a range of qualifying experience types
Residency and Jurisdiction Considerations
You do not necessarily have to apply in the state where you live. Some important considerations:
- You can take the exam in any state, regardless of where you apply
- Some states have no residency requirement, allowing out-of-state candidates to apply
- Once licensed, you can transfer your license to another state through reciprocity, though this usually involves additional fees and possibly meeting the new state's requirements
- International candidates often apply through specific states that cater to non-resident candidates
Common Mistakes to Avoid
Based on common candidate experiences, here are mistakes to watch out for:
- Assuming all states are the same: Requirements vary significantly. Do not rely on advice from someone who applied in a different state.
- Not checking requirements early enough: Discovering you need additional coursework after you have already planned your exam timeline can set you back months.
- Ignoring experience requirements: Some candidates pass all four exam sections and then realize they cannot get licensed because they did not plan their experience requirement.
- Not keeping records: Keep copies of transcripts, course descriptions, and experience verification documents. You may need them for initial licensure and for reciprocity if you move states later.
- Missing application deadlines: NTS windows, application renewals, and experience submission deadlines are easy to miss if you are not tracking them carefully.
How to Verify Your State's Requirements
The most reliable way to check your state's requirements is to go directly to your state board of accountancy website. NASBA also maintains a helpful jurisdiction lookup tool. Do not rely solely on third-party websites or forum posts, as requirements can change and informal sources may be outdated.
If you have questions about whether your coursework qualifies, contact your state board directly. Most boards have staff who can review your transcripts and provide guidance before you apply.
Understanding your state's requirements is a crucial first step in your CPA journey. Once you know what you need, you can build a timeline that accounts for any additional education, the exam itself, and your experience requirement. Think CPA helps you focus on the exam preparation portion of that journey with structured, section-specific study materials. When you are ready to start studying, we have the resources to help you prepare efficiently and effectively.