What Is a CPA License? Requirements, Exams, and How to Become a CPA
A Certified Public Accountant (CPA) license is a state-issued credential that authorizes an accountant to use the CPA designation and, in many cases, perform services that require a licensed professional. The requirements vary by state, but usually involve education, the Uniform CPA Examination, qualifying work experience, and sometimes an ethics exam. Knowing how those steps fit together can help candidates plan a practical path to licensure.
What Is a CPA License?
A CPA license is a professional credential issued by a state or U.S. jurisdiction’s Board of Accountancy. It confirms that the license holder met that jurisdiction’s education, examination, experience, and other requirements. A CPA license is not a single national license: each state and territory sets its own rules, although many requirements are similar.
The CPA designation is different from an accounting degree or a certificate of course completion. A person can work in accounting without a CPA license, but generally cannot claim to be a CPA without meeting the applicable rules. In addition, certain services—particularly issuing reports on audits and other attest engagements—are regulated and may require a licensed CPA and a properly authorized firm.
CPAs work in public accounting, business, government, and nonprofit organizations. Their responsibilities can include auditing financial statements, preparing and reviewing tax returns, advising on financial reporting, and helping organizations strengthen internal controls. The license signals that the individual has met defined professional standards; it does not guarantee a particular level of expertise in every specialty.
CPA License Requirements at a Glance
Most candidates move through several stages, but the order and details depend on the jurisdiction. A state may allow candidates to sit for the exam before completing all licensure requirements, for example, while requiring additional education or experience before issuing a license.
- Education: Complete the required college-level accounting and business coursework and meet the jurisdiction’s degree or credit-hour rules.
- Examination: Pass all sections of the Uniform CPA Examination within the applicable time limit.
- Experience: Complete qualifying professional experience, often under the supervision of a licensed CPA.
- Ethics or other requirements: Complete an ethics exam or course, if required, and satisfy any background, application, or fee requirements.
- Ongoing compliance: Maintain the license through renewals and continuing professional education (CPE), as required by the licensing authority.
Important: There is no single set of requirements that applies identically across the United States. Candidates should confirm current rules with the board where they intend to apply.
Education Requirements for a CPA License
Education rules typically combine a college degree requirement with specific accounting and business coursework. Many jurisdictions require a bachelor’s degree or its equivalent, while the commonly cited 150-semester-hour standard applies in numerous states for licensure. Because state rules can change—and some jurisdictions offer different pathways—150 hours should not be treated as a universal rule for every candidate or every stage.
In some states, candidates may be eligible to take the CPA Exam after completing fewer than 150 hours, then complete additional credits before applying for a license. Other jurisdictions may allow alternative routes involving a graduate degree, specific course combinations, or qualifying work experience. The details matter: simply earning 150 hours does not necessarily satisfy a state’s required accounting or business subject distribution.
Course requirements may cover subjects such as financial accounting, auditing, taxation, business law, economics, finance, and information systems. Boards may also specify the number of upper-level accounting credits or require courses from an accredited institution. Internationally educated candidates may need a credential evaluation to determine whether their coursework meets U.S. standards.
How to Check College Credits
Candidates should compare official transcripts with the rules of the intended licensing jurisdiction before enrolling in additional courses. A state board, its designated evaluation service, or the National Association of State Boards of Accountancy (NASBA) can explain how education is reviewed. Candidates with credits from multiple schools, online programs, or institutions outside the United States should allow time for transcript evaluation.
The Uniform CPA Examination
The Uniform CPA Examination is a professional exam used by U.S. accountancy boards as part of the licensure process. It is developed by the American Institute of Certified Public Accountants (AICPA), while NASBA and state boards handle important aspects of candidate eligibility and administration. Passing the exam is a major milestone, but it does not by itself grant a CPA license.
The exam has four sections: three required Core sections and one candidate-selected Discipline section. Candidates must pass:
- Auditing and Attestation (AUD): Covers audit planning and performance, attestation engagements, and related professional responsibilities.
- Financial Accounting and Reporting (FAR): Tests financial accounting and reporting concepts across relevant entities and transactions.
- Taxation and Regulation (REG): Covers federal taxation, business law, and related professional responsibilities.
- One Discipline: Candidates choose Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).
The Discipline choice allows candidates to demonstrate additional knowledge in an area of interest. All candidates still complete the same three Core sections; selecting a Discipline does not replace a Core exam. Exam content and administrative policies can be updated, so candidates should consult the official CPA Exam materials before setting a study plan.
Each section is scored separately. A candidate generally needs a score of at least 75 on each section, as reported on the CPA Exam’s scoring scale, to pass. That score is not a percentage correct. Jurisdictions set the time window in which all sections must be passed; many have adopted an 18-month period, while some provide a longer period under their rules. The clock and credit-expiration policies should be verified with the relevant board.
Experience and Ethics Requirements
Most licensing jurisdictions require candidates to complete relevant work experience. The amount, type, and supervision rules differ. A state may require a specified number of months or hours in accounting, attest, taxation, or another approved area. Some accept experience in public accounting, government, industry, or academia, while others place limits on which roles qualify.
Many boards require experience to be verified by an active CPA, but the supervisor’s location, license status, and relationship to the candidate can matter. Candidates should keep records of dates, duties, hours, and supervising professionals. It is wise to confirm in advance whether a planned position will count, rather than assuming that any accounting job will satisfy the rule.
An ethics requirement may involve passing an exam, completing an approved course, or both. The format and timing vary by jurisdiction. Some boards require the ethics step before initial licensure; others incorporate professional conduct requirements into licensing or renewal rules. Candidates should check whether the assigned material or exam is state-specific.
How to Get a CPA License
- Choose the licensing jurisdiction. Consider where the candidate plans to practice and verify that state’s education, exam, experience, and application rules.
- Review education eligibility. Obtain transcripts and identify any missing credits or subject requirements. Request an evaluation if the board requires one.
- Apply for exam eligibility. Follow the jurisdiction’s process to submit transcripts, fees, and required documentation. Candidates typically receive authorization before scheduling exam sections.
- Pass the four exam sections. Plan study time around the applicable credit window and keep track of score-release and expiration dates.
- Complete experience and ethics requirements. Confirm that the work qualifies and that the supervisor or ethics provider meets board rules.
- Submit the license application. Provide verification, fees, and any other required documents. The board—not the exam administrator—makes the licensing decision.
Some candidates complete the steps in a different order. For example, a candidate might gain experience while preparing for the exam or finish required education after passing exam sections, if the jurisdiction permits it. A written checklist based on the board’s current instructions can prevent missed deadlines and duplicate work.
How Long Does It Take to Become a CPA?
The timeline depends on a candidate’s starting education, exam preparation schedule, employment, and state requirements. A person who already has the required credits may be able to complete the exam and experience steps over a few years; someone who needs additional coursework may take longer. Passing the exam also depends on study time and whether sections need to be retaken.
Rather than rely on a single estimate, candidates can map their own milestones: education evaluation, exam application, study and testing, qualifying employment, ethics completion, and license review. Delays can result from incomplete transcripts, a change in state rules, or experience that does not meet the board’s definition.
CPA License vs. CPA Certificate and Exam Passage
Terminology can be confusing because some jurisdictions distinguish between an exam certificate and an active license, while others use different administrative labels. In general, passing the CPA Exam means a candidate has met the examination component—not necessarily all conditions to practice as a licensed CPA. A degree in accounting also does not confer the CPA designation.
Before describing professional status on a résumé, website, or business card, candidates should use the terminology permitted by their jurisdiction. A person who has passed the exam but has not received a license should not imply that they are a licensed CPA.
Maintaining a CPA License
After initial licensure, CPAs generally must renew on a schedule set by the state board and complete continuing professional education. CPE rules vary in required hours, reporting periods, subject areas, and ethics training. Some states require a minimum amount of accounting or auditing education for CPAs performing particular services.
CPAs who move, practice across state lines, or provide services remotely should check rules for both their home jurisdiction and the states where clients are located. Interstate practice may be allowed under mobility provisions, but eligibility can depend on the CPA’s home license, the services performed, and the other state’s laws. A license in one state should not automatically be assumed to authorize every activity in another.
Failure to renew or meet CPE requirements can result in an inactive or delinquent status, restrictions, or other consequences under state law. Each board provides its own renewal instructions and rules for returning to active status.
Where to Verify CPA License Requirements
The most reliable source is the Board of Accountancy in the state or jurisdiction where the candidate plans to seek licensure. NASBA’s State Boards of Accountancy directory provides links to boards, and its licensure resources explain common application topics. The AICPA’s CPA Exam information describes the exam structure and candidate resources.
Because education pathways, exam windows, experience rules, and renewal policies can be revised, candidates should use these organizations for general guidance and confirm final details directly with the relevant board. That check is especially important before paying for coursework, choosing an exam jurisdiction, or accepting a position intended to satisfy experience requirements.