120 vs 150 Credit Hours: The 150-Hour Rule and New CPA Licensure Pathways

The journey to becoming a Certified Public Accountant (CPA) has always rested on three requirements: education, experience, and passing the CPA Exam. For decades, the education piece meant one thing in nearly every state: 150 hours of college credit, roughly a bachelor's degree plus a fifth year of school.

That is no longer the only option. Following a change to the Uniform Accountancy Act (UAA) approved by the AICPA and NASBA in 2025, the vast majority of states have now adopted, or are in the process of adopting, an additional pathway that lets candidates substitute a second year of professional experience for those extra 30 credit hours.

In this guide, we'll walk through what has changed, the three pathways to licensure, where each state stands, how CPA mobility works under the new model, and how to decide which path fits your goals. If you still plan to complete (or are required to complete) 150 credit hours, we'll also cover the most practical ways to get there.

Why Is CPA Licensure Changing?

To understand where licensure is going, it helps to understand where the 150-hour rule came from.

Before 1988, most states only required an undergraduate degree as a prerequisite for CPA licensure. That year, the American Institute of Certified Public Accountants (AICPA) recommended that state boards of accountancy raise the requirement to 150 credit hours. The thinking was that additional education before licensure would produce more well-rounded CPAs who were better prepared for increasingly complex work. Over the following decades, every state, jurisdiction, and the District of Columbia adopted the 150-hour rule, though the specific accounting and business coursework required within those hours has always varied by state board.

Pushback Against the 150-hour Requirement

Over time, the 150-hour rule drew growing criticism, especially as the profession faced a talent shortage. Critics argued that the fifth year of school had become a structural barrier, adding significant cost and delaying entry into the workforce at a time when many students could choose other business careers that did not require it. A report from the Center for Audit Quality noted a decline in the number of accounting graduates and found that the 150-hour requirement was among the top five reasons students cited for not majoring in accounting.¹

Critics also pointed to the rule's effect on diversity in the profession. Writing for Fortune, Guylaine Saint Juste, president and CEO of the National Association of Black Accountants (NABA), noted that "only 2% of CPAs are Black," a figure she described as stagnant for 25 years, and argued that requiring an additional year of college often means taking on more student loan debt.² 

For a time, the profession's regulators held firm. In 2023, NASBA reaffirmed its support of the 150-hour standard by a unanimous vote, and NASBA leadership warned that states lowering the requirement to 120 hours could jeopardize CPA mobility for their licensees.³ That concern about mobility is a large part of why the eventual solution was developed nationally rather than state by state, as you'll see below.

Get a bit more insight into the history of the 150-hour requirement for CPAs in this clip from our CPE podcast, Balancing the Future: 150 Hours from Two Perspectives. 

What Did the AICPA and NASBA Approve?

On May 14, 2025, the boards of directors of the AICPA and NASBA approved changes to the Uniform Accountancy Act, the model legislation that states use as a foundation for their own accountancy laws. The change added a new option allowing candidates to earn their CPA license with a bachelor's degree, two years of professional experience, and passing the CPA Exam.⁴ This was approved as an additional pathway, not a replacement for the existing 150-hour path.

Before arriving at this model, the AICPA and NASBA had also sought public input on a proposed Competency-Based Experience Pathway, which would have required candidates to demonstrate specific professional and technical competencies verified by a licensed CPA.⁵ The approved model ultimately took a simpler approach: a defined amount of additional experience in place of additional education.

The Three Pathways to CPA Licensure

Under the updated model, all three pathways keep the same core components, education, experience, and examination. What changes is how education and experience are balanced.

• Pathway 1, 150 hours: Bachelor's degree with an accounting concentration plus 30 additional semester hours and at least one year of experience

• Pathway 2, graduate degree: Master's degree with an accounting concentration and at least one year of experience

• Pathway 3, 120 hours: Bachelor's degree with an accounting concentration and at least two years of experience. 

It's important to note that the UAA is a national model. States are not required to adopt it exactly as written, and your state Board of Accountancy's CPA requirements are what ultimately apply to you. Some states have adopted all three pathways, some have adopted two, and a few have eliminated the 150-hour requirement entirely.

What the New Pathway Is, and What It Isn't

The 120-hour pathway is sometimes described as a shortcut, but that's not quite accurate. It rebalances the requirements rather than reducing them: the year you would have spent earning additional credits becomes a year of professional experience instead. The CPA Exam itself has not changed, and every pathway requires passing the same four sections, three Core sections and one Discipline.

For many candidates, the new pathway can mean lower education costs, earlier entry into the workforce, and more on-the-job learning before licensure. For others, particularly those who plan to earn a graduate degree anyway, the 150-hour or graduate degree paths may still be the better fit.

Does This Mean the 150-Hour Rule Is Gone?

No. In most states, the 150-hour pathway remains fully available alongside the new option. Think of the new model as expanding your choices rather than replacing them.

There are still good reasons a candidate might choose to complete 150 hours:

• Shorter experience requirement: The 150-hour and graduate degree paths generally require one year of experience instead of two, so you may be able to become licensed sooner after graduation.
• Flexibility across states: A small number of states have not yet adopted the new pathway, and some candidates prefer the 150-hour path to keep their options as open as possible while the transition finishes.
• Graduate-level preparation: A master's in accounting or MBA can deepen technical knowledge, support specialization, and help prepare for the CPA Exam.
• Employer expectations: Some employers and recruiting programs are still adjusting to the new pathways, so it's worth asking prospective employers how they approach CPA eligibility.

How Are States Adopting the New CPA Licensure Pathways?

CPA licensure has always been state-based, and that hasn't changed. Each state legislature and board of accountancy decides which pathways to offer, what coursework counts, how experience must be verified, and when changes take effect. That's why adoption has unfolded state by state rather than all at once.

The pace has been fast. Ohio became the first state to put new pathways legislation on its books in early 2025, and by mid-2026 more than 40 states and Puerto Rico had enacted laws or rules offering an alternative to the 150-hour requirement.⁶

Keep in mind that a law being signed is not the same as it being in effect. Many states have a delayed effective date, and some boards are still finalizing rules about exactly which courses qualify. Always confirm the details with your state board before making education or career decisions.

CPARequirements by State

Select your state to see its specific CPA Exam and licensure 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. 

States Dropping the 150 Credit Hour Requirement for CPAs

Currently, several states have laws that are already in effect or go into effect in the future,  which eliminate or provide an alternative to the standard 150 hour CPA requirement.

Alabama

Effective October 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree with accounting concentration, two years of qualifying experience, and passing the CPA Exam
• Bachelor's degree with accounting concentration, 30 additional semester hours (150 total hours), one year of qualifying experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of qualifying experience, and passing the CPA Exam 
   

Alaska

Effective January 1, 2026, you must meet one of the following requirements: 

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
   

Arizona

Effective December 31, 2026, you must meet one of the following requirements options:

• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional semester hours (150 total hours), one year of experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of experience, and passing the CPA Exam 
   

Arkansas

Effective March 5, 2026, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration and business component, two years of qualifying experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration and business component, 30 additional semester hours (150 total hours), one year of qualifying experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of qualifying experience, and passing the CPA Exam 
  
   

California

Effective January 1, 2027, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree, the completion of a Board-recognized certificate, 1.5 years of experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of experience, and passing the CPA Exam 

Colorado

Effective January 1, 2027, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of qualifying experience under the supervision of a licensed CPA, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, 30 additional semester hours (150 total hours), one year of qualifying experience under the supervision of a licensed CPA, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of qualifying experience under the supervision of a licensed CPA, and passing the CPA Exam 

Connecticut  

Effective October 1, 2025, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college semester hours, one year of experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of experience, and passing the CPA Exam 

Delaware

Effective July 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college semester hours, one year of experience, and passing the CPA Exam
• Post-baccalaureate degree in accounting, one year of experience, and passing the CPA Exam 

Georgia 

Effective January 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college semester hours, one year of experience, and passing the CPA Exam
• Master's degree in accounting, one year of experience, and passing the CPA Exam 

Hawaii

Effective April 10, 2025,  you must meet one of the following requirements options:

• 150 hours of college credit, two years of experience, and passing the CPA Exam
• Bachelor's degree, three years of experience, and passing the CPA Exam

Idaho 

Effective July 1, 2026,  you must meet one of the following requirements options:

• Master's degree with an accounting concentration, one year of experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, 30 additional college hours, one year of experience, and passing the CPA Exam

Indiana

Effective January 1, 2027,  you must meet one of the following requirements options:

• Master's degree, one year of experience, and passing the CPA Exam
• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam

Illinois

Effective January 1, 2027, you must meet one of the following requirements options:

• Bachelor's degree with a concentration in accounting, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam
• Master's degree with a concentration in accounting, one year of experience, and passing the CPA Exam

Iowa

Effective July 1, 2026, you must meet one of the following requirements options:

• Master's degree, one year of experience, and passing the CPA Exam
• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam

Kansas

Effective April 23, 2026, you must meet one of the following requirements options:

• Bachelor's degree with a concentration in accounting, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam
• Post-baccalaureate degree with a concentration in accounting, one year of experience, and passing the CPA Exam
   

Kentucky

Effective July 14, 2026, you must meet one of the following requirements options:

• Bachelor's degree with a concentration in accounting, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam
• Post-baccalaureate degree with a concentration in accounting, one year of experience, and passing the CPA Exam
   

Louisiana 

Signed into law in June 2026, with an effective date to be announced, you must meet one of the following requirements options:

• Bachelor's degree with a concentration in accounting, two years of experience, and passing the CPA Exam
• Bachelor's degree with a concentration in accounting, 30 additional college hours, one year of experience, and passing the CPA Exam
• Post-baccalaureate degree with a concentration in accounting, one year of experience, and passing the CPA Exam
   

Maryland

Effective October 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree in accounting, two years of experience, and passing the CPA Exam
• Bachelor's degree in accounting, 30 additional college hours, one year of experience, and passing the CPA Exam
• Master's degree or higher in accounting, one year of experience, and passing the CPA Exam
   

Minnesota

Effective January 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam (this will sunset on June 30, 2030)
• Master's degree, one year of experience, and passing the CPA Exam
   

Mississippi

Effective July 1, 2026, you must meet one of the following requirements options:

• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, 30 additional college hours (150 semester hours total), one year of experience, and passing the CPA Exam
• Master's degree with an accounting concentration, one year of experience, and passing the CPA Exam
   

Missouri 

Effective August 28, 2026, you must meet the following requirements:

• Master's degree with accounting and business coursework, one year of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, two years of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, 30 additional semester hours (150 total hours), one year of experience, and passing the CPA Exam

Montana

Effective January 1, 2026, you must meet the following requirements:

• Bachelor's degree and meeting the accounting and business course credit hours, one year of experience with 2,000 or more hours of relevant experience, and passing the CPA Exam

Nebraska 

Effective three months after the final Nebraska legislative sessions (exact date to be determined), you must meet the following requirements:

• Master's degree with accounting and business coursework, one year of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, two years of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, 30 additional semester hours (150 total hours), one year of experience, and passing the CPA Exam
  
   

Nevada 

Effective February 27, 2026, you must meet one of the following requirements options:

• Master's degree with accounting and business coursework, one year (2,000 hours) of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, two years (4,000 hours) of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, 30 additional semester hours (150 total hours), one year (2,000 hours) of experience, and passing the CPA Exam

New Hampshire 

Effective April 22, 2026, you must meet one of the following requirements options:

• Master's degree with accounting and business coursework, one year of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, two years of experience, and passing the CPA Exam
• Bachelor's degree with accounting and business coursework, 30 additional semester hours (150 total hours), one year of experience, and passing the CPA Exam
   

New Jersey

Effective February 11, 2026, you must meet one of the following requirements options:

• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam

New Mexico

Effective January 1, 2026, you must meet one of the following requirements options:

• Master's degree, one year of experience, and passing the CPA Exam
• Bachelor's degree, two years of experience, and passing the CPA Exam
• Bachelor's degree, 30 additional college hours, one year of experience, and passing the CPA Exam

New York

Effective November 21, 2026, you must meet one of the following requirements options: 

• Bachelor's degree or higher in accounting for a total 120 semester hours, two years of professional experience, and passing the CPA Exam
• Bachelor's degree or higher in accounting for a total 150 semester hours, one year of professional experience, and passing the CPA Exam

North Carolina

Effective January 1, 2026, you must meet one of the following requirements options: 

• Bachelor's degree with an accounting concentration, two years of experience under the supervision of a CPA, and passing the CPA Exam
• Bachelor's degree, 30 additional college semester hours or master's degree, one year of experience under the supervision of a CPA, and passing the CPA Exam
• Applicants may have four years of experience in teaching or in the field of accounting as the equivalent of supervised experience.
   

Ohio

The first state to offer an alternative pathway to becoming a CPA, beginning on January 1, 2026, candidates have the following options:

• Master's degree with an accounting concentration, one year of experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, two years of experience, and passing the CPA Exam

Oklahoma 

Effective November 1, 2026, you must meet one of the following requirements options: 

• Bachelor's degree with an accounting concentration, two years of qualifying experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, 30 additional college semester hours (150 total hours), one year of qualifying experience, passing the CPA Exam
• Post-graduate degree with an accounting concentration, one year of qualifying experience, and passing the CPA Exam

Oregon 

Effective January 1, 2026, you must meet one of the following requirements options: 

• Bachelor's degree, two years of relevant experience, passing the CPA Exam
• Bachelor's degree with 30 additional college semester hours, one year of relevant experience, passing the CPA Exam
• Master's degree (or other post-graduate degree), one year of relevant experience, passing the CPA Exam

Pennsylvania

Effective June 30, 2025, you must meet one of the following requirements options: 

• Bachelor's degree, two years of relevant experience, passing the CPA Exam
• Bachelor's degree with 30 additional college semester hours, one year of relevant experience, passing the CPA Exam
• Master's degree (or other post-graduate degree), one year of relevant experience, passing the CPA Exam

Puerto Rico 

Effective March 18, 2026, you must meet one of the following requirements options: 

• Bachelor's degree with an accounting concentration, two years of relevant experience, passing the CPA Exam
• Bachelor's degree or higher in accounting with at least 150 semester hours one year of relevant experience, passing the CPA Exam
   

Rhode Island 

Effective June 23, 2026, you must meet one of the following requirements options: 

• Bachelor's degree with an accounting concentration, two years of relevant experience, passing the CPA Exam, completing the AICPA Ethics course with a grade of 90 or above 
• Bachelor's degree with an accounting concentration, 30 additional college semester hours, one year of relevant experience, passing the CPA Exam, completing the AICPA Ethics course with a grade of 90 or above 
• Master's degree with an accounting concentration, one year of relevant experience, passing the CPA Exam, completing the AICPA Ethics course with a grade of 90 or above 
   

South Carolina

Effective June 30, 2025, you must meet one of the following requirements options: 

• Bachelor's degree, two years of relevant experience, passing the CPA Exam
• Bachelor's degree with 30 additional college semester hours, one year of relevant experience, passing the CPA Exam
• Master's degree, one year of relevant experience, passing the CPA Exam

South Dakota

Effective July 1, 2026, you must meet one of the following requirements options: 

• Bachelor's degree with an accounting concentration, two years of relevant and qualifying experience, and passing the CPA Exam
• Bachelor's degree with an accounting concentration, 30 additional semester hours (150 hours total), one year of relevant and qualifying experience, and passing the CPA Exam
• Master's degree with an accounting concentration, one year of relevant and qualifying experience, and passing the CPA Exam

Tennessee

Effective January 1, 2026, you must meet one of the following requirements options:

• Pass the CPA Exam, bachelor's degree with an accounting concentration (including 30 hours of accounting education and 24 hours of general business), two years of experience
• Pass the CPA Exam, bachelor's degree with an accounting concentration (including 30 hours of accounting education and 24 hours of general business), 30 additional college semester hours, and one year of experience
     

Texas

Effective August 1, 2026, you must meet one of the following requirements options:

• Pass the CPA Exam, bachelor's degree with an accounting concentration (including at least 24 hours of accounting courses), two years of experience
• Pass the CPA Exam, bachelor's degree with an accounting concentration (including 24 hours of accounting courses), 30 additional college semester hours or a graduate degree in accounting, and one year of experience

Utah

Effective July 1, 2026, you must meet one of the following requirements options:

• Master's degree, one year of experience, passing the CPA Exam, passing the AICPA Ethics Exam, passing the Utah Law and Rule Exam
• Bachelor's degree, two years of experience, and passing the CPA Exam, passing the AICPA Ethics Exam, passing the Utah Law and Rule Exam
   

Vermont

Effective June 11, 2026, you must meet one of the following requirements options: 

• Post-baccalaureate degree in accounting, one year of public accounting experience, and passing the CPA Exam
• 150 total semester hours of university education including a bachelor's degree and at least 42 hours in accounting coursework, one year of public accounting experience, and passing the CPA Exam
• Bachelor's degree in accounting, two years of public accounting experience, and passing the CPA Exam

Virginia 

Effective January 1, 2026, you must meet one of the following requirements options:

• Master's degree, one year of experience, and passing the CPA Exam
• Bachelor's degree, two years of experience, and passing the CPA Exam

Washington 

Effective November 20, 2025, you must meet one of the following requirements options:

• Bachelor's degree in accounting, two years of experience supervised by an active CPA, and passing the CPA Exam
• Bachelor's degree in accounting, additional 30 semester hours (total 150 hours), one year of experience supervised by an active CPA, and passing the CPA Exam
• Master's degree or higher in accounting, one year of experience supervised by an active CPA, and passing the CPA Exam

West Virginia  

Effective May 24, 2026, you must meet one of the following requirements options:

• Bachelor's degree in accounting, two years of experience supervised by an active CPA, and passing the CPA Exam
• Bachelor's degree in accounting, additional 30 semester hours (total 150 hours), one year of experience supervised by an active CPA, and passing the CPA Exam
• Master's degree or higher in accounting, one year of experience supervised by an active CPA, and passing the CPA Exam
   

States Still Requiring 150 Credit Hours for Licensure

As of mid-2026, a small group of jurisdictions had not yet formalized a new pathway, including Florida, Massachusetts, Michigan, North Dakota, Wyoming, and the District of Columbia.⁶ Several of these have legislation in progress. For example, the Massachusetts Senate has passed a pathways bill, and the Florida Institute of CPAs has said it plans to refile its bill in 2027. [COMPLIANCE FLAG: Confirm status of each jurisdiction on the publish date, and confirm Maine's status; sources conflict on whether Maine has enacted a full licensure pathway or only a 120-hour exam eligibility change. Also confirm Guam, U.S. Virgin Islands, and Northern Mariana Islands.]

If you live in one of these states, the 150-hour requirement still applies to you for now. That doesn't mean you need to wait to get started. Most states, including several of these, allow you to sit for the CPA Exam with 120 credit hours, so you can begin studying and testing while you complete your remaining credits or watch for legislative updates.

What About CPA Mobility?

CPA mobility refers to a CPA's ability to practice across state lines without obtaining a separate license in each state. It's one of the reasons the 150-hour requirement stayed in place for so long: under the old framework, mobility generally depended on whether a CPA's home state requirements were "substantially equivalent" to those of other states, and lowering the education requirement could have put that equivalency at risk.

The July 2025 edition of the UAA addressed this by shifting mobility toward an individual-based approach, where a CPA's ability to practice in another state is based on their own qualifications rather than a state-to-state comparison of rules.⁶ Many states have also passed mobility provisions alongside their new pathways.

Mobility is still a work in progress during this transition, especially while a handful of states retain only the 150-hour pathway. If you expect to work across state lines, or think you may relocate early in your career, check how the states you're considering treat CPAs licensed under the 120-hour pathway.

120 vs. 150: Which CPA Pathway Is Right for You?

There's no universally correct answer. The right path depends on your timeline, finances, career goals, and the state where you plan to be licensed. Here's how the main considerations compare:

A few questions can help you decide:

• Your state: Has your state adopted the new pathway, and when does it take effect?
• Your timeline: Do you want to enter the workforce as soon as possible, or does an additional year of school fit your plans?
• Your education goals: Were you planning to pursue a master's in accounting or MBA anyway?
• Your employer: Does your current or prospective employer have a preference, or offer support such as tuition assistance or CPA Exam review?
• Your mobility needs: Do you expect to practice in more than one state, or relocate in the next few years?

Whichever path you choose, one thing doesn't change: you still need to pass all four sections of the CPA Exam.

How to Get 150 Credit Hours for CPA Licensure

If your state still requires 150 hours, or if you've decided the 150-hour path is right for you, there are several ways to earn the additional credits. Before you choose, confirm which courses your state board accepts, since most states require a minimum number of upper-level accounting and business hours within your total.

Go to Grad School

The most straightforward option is to earn a master's degree, such as an MBA or a master's in accounting (MAcc). Just ensure that the additional coursework provides the accounting and business courses your state requires for licensure. A graduate degree can also satisfy the graduate degree pathway on its own in many states.

Add Courses or a Second Major During Your Undergraduate Program

Some students reach 150 hours by the time they graduate by adding a second major or minor, taking additional accounting or business electives, or carrying heavier course loads across several semesters. If you're still in school, talk with your academic advisor early about whether this is realistic for you.

Take Community College Classes

For budget-conscious candidates, accredited community colleges offer a variety of affordable in-person and online classes. If you have all the required accounting and business credits, you can take the extra classes in any topic. This can be a great way to build skills in areas that support accounting, like IT or communications, or you can simply take classes in topics that interest you, like art history or creative writing.

CPA Credits

CPA Credits is an organization that provides an easier, self-paced opportunity to earn the extra 30 credit hours you need. With upper-level accounting and business courses accredited through their partner, Upper Iowa University, you'll get the knowledge and credits you need at a rate often more affordable than most colleges, including community colleges.

As part of our exclusive partnership with CPA Credits, students of CPA Credits can also receive Becker's CPA Exam Review course at a discounted rate! 

CLEP exams

College Level Examination Program (CLEP) exams are standardized tests that allow you to receive college credit by passing an exam instead of taking a course. While you may be able to use these exams to meet the 150-hour requirement, you usually can't use them in place of required accounting and business courses. Also, avoid duplicating courses you've already completed at your college or university, and confirm that your state board accepts CLEP credit.

Remember, there's no right or wrong way to earn the additional credits needed to meet the 150-hour education requirement as long as it meets your state board's requirements. So, choose courses that will make you a more knowledgeable and well-rounded professional.

What Should You Do Now?

If you're planning your path to CPA licensure, these steps can help you move forward with confidence:

1. Check your state's requirements: Start with our guide to CPA Exam requirements by state, then confirm current and upcoming rules with your state board of accountancy.
2. Map out your timeline: Decide whether entering the workforce sooner or completing additional education makes more sense for you, and which is realistically attainable.
3. Think beyond licensure: Consider how your chosen pathway fits your long-term career goals, including specialization and where you may want to work.
4. Start preparing for the exam: Most states allow you to sit for the CPA Exam before you meet the full licensure requirements, so you may be able to start studying and testing now.
5. Stay informed: Requirements are still evolving in several states, and boards continue to issue guidance on implementation details.

Download Your FREE CPA Exam Guide

No matter how the CPA hours requirement change, one thing remains constant for candidates, and that's passing the CPA Exam. Learn more about the exam and tips on how to pass with our free CPA Exam Guide! 

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Frequently Asked Questions

Is the 150-hour CPA requirement going away?

Not entirely. Most states that have adopted the new pathway have kept the 150-hour path as an option, and a small number of states still require 150 hours for licensure. What has changed is that most candidates now have more than one way to meet the education requirement.

Can I become a CPA with 120 credit hours?

In most states, yes, provided your state has adopted the new pathway and it has taken effect. You'll typically need a bachelor's degree with your state's required accounting and business coursework, two years of qualifying experience, and passing scores on all four sections of the CPA Exam.

Can I sit for the CPA Exam with 120 credit hours?

In most states, yes. Sitting for the exam and qualifying for licensure have separate requirements, and most states allow candidates to take the exam with 120 hours or a bachelor's degree. Check your state's specific exam eligibility rules before you apply.

If I've already started on the 150-hour path, should I switch?

It depends on how close you are to completing your credits and how much experience you have. If you're only a semester or two away from 150 hours, finishing may get you licensed faster since you'll need only one year of experience. Some states have also issued transition guidance for candidates who applied before the new pathway took effect, so check with your state board.

Will my CPA license be recognized in other states if I use the 120-hour pathway?

The updated UAA moves mobility toward an individual-based approach, and many states have passed mobility provisions alongside their new pathways. However, practice privileges can still vary during the transition, especially in states that have not yet adopted the new model. If you expect to work across state lines, confirm how those states treat CPAs licensed under the 120-hour pathway.