If you’re planning to become a certified public accountant (CPA), you’ve probably heard about the 150-hour rule. It’s the education benchmark for most states, meaning you need 150 college credit hours to qualify for your CPA license. That’s more than the 120 credits you’d need for a typical bachelor’s degree.
The 150-hour rule has long been the CPA standard. But change is in motion. Several states are now rethinking and rewriting their requirements, exploring new ways to help emerging accountants get their licenses faster.
Whether you’re just starting your degree or planning your next career step, knowing how this rule works (and where it’s headed) can help you carve the right path to your CPA goals.
Key Points
- Many states still require 150 college credit hours to become a licensed CPA. That typically amounts to 30 more credits than a standard bachelor’s degree.
- The 150-hour rule is under review nationwide amid concerns over talent shortages, financial barriers, and diversity in the profession.
- Many states have already introduced alternatives to the 150-hour rule. Many allow for additional work experience in place of extra credit hours.
- Always check your state board’s requirements, as rules vary and are changing quickly.
What Is the 150-Hour Rule for CPAs?
The 150-hour rule is the educational requirement for becoming a CPA. It means you must complete 150 semester credit hours of college coursework before you can get licensed. That’s 30 more credits than a typical 4-year bachelor’s degree, which usually totals 120 credit hours.
This rule dates back to the late 1980s, when the accounting profession was changing fast. The idea was simple: As tax laws, auditing standards, and business regulations grew more complex, CPAs needed more education to keep up. So, the American Institute of Certified Public Accountants (AICPA) proposed raising the bar from requiring only a bachelor’s degree to 150 credit hours.
Each state sets its own CPA licensing rules, but the 150-hour benchmark became the national standard. Over time, schools began offering 5-year programs or combined bachelor’s/master’s degree tracks to help students meet the extra hours in one single program.
However, not all 150 credits need to be in accounting. While most states require a core set of accounting and business classes, the remaining hours can often come from general education. That flexibility can be a bonus if you plan strategically, or a hurdle if you’re not sure how to fill the gap.
Why the Rule Has Recently Been Under Review
For years, the 150-hour rule has been considered the gold standard. But now, it’s at the center of one of the biggest debates in the accounting world.
According to a survey reported by Intuit, 80% of companies in the accounting industry reported difficulty hiring skilled professionals.
Students continue to weigh whether the extra time and money required to hit 150 credit hours is worthwhile. Public universities may charge a few thousand dollars more for that extra coursework, while private master’s programs can reach $60,000 or higher. By comparison, entry-level accountant and auditor salaries often start at around $50,000 a year, according to the US Bureau of Labor Statistics (BLS), though the median salary is closer to $80,000.
State legislatures, accounting firms, educators, and professional groups have all started asking the same question: Is the 150-hour rule helping or hurting the profession?
There are growing concerns that the rule is a barrier—financially, logistically, and demographically. Many aspiring CPAs can’t afford another semester or 2 of tuition. Others can’t afford to delay earning a paycheck just to rack up elective credits that may not actually make them better accountants.
In response, many states have passed—or are considering—alternatives to the 150-hour rule that still uphold professional standards while removing some of the roadblocks.
State Requirements: Where the 150-Hour Rule Stands in 2026
In 2026, not every state is playing by the same rules. While many still follow the traditional 150-hour education requirement for CPA licensure, a growing number are testing new pathways.
Several states have officially approved alternative paths to licensure, such as work experience substitutions or flexible education tracks. Others are exploring pilot programs or have passed legislation that takes effect in the next year or 2.
Some of the more significant changes and developments in creating additional licensure pathways include:
| State | 150-Hour Rule Status | Details / Effective Date |
| Alaska | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2026 |
| California | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2027 |
| Connecticut | Alternative pathways enacted | Bachelor’s + 2 years experience or post-baccalaureate degree + 1 year |
| Delaware | Alternative pathways approved | Bachelor’s + 2 years experience or post-baccalaureate + 1 year; effective July 1, 2026 |
| Georgia | Alternative pathways approved | Bachelor’s + 2 years experience or master’s + 1 year; effective January 1, 2026 |
| Hawaii | Alternative pathways enacted | Bachelor’s + 2 years of experience or Bachelor’s + 3 years of professional accounting experience (in lieu of full 150 credits) |
| Illinois | Alternative pathways approved | Bachelor’s + 2 years experience or master’s + 1 year; effective January 1, 2027 |
| Indiana | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2027 |
| Iowa | Alternative pathway approved | Bachelor’s + 2 years experience; effective July 1, 2026 |
| Minnesota | Alternative pathways approved | Bachelor’s + 2 years experience or master’s + 1 year experience; effective January 1, 2026 |
| Michigan | Legislation introduced | State exploring additional pathways |
| Montana | Alternative pathway approved | Bachelor’s + 1 year experience; effective January 1, 2026 |
| New Mexico | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2026 |
| New York | Alternative pathway legislation passed | Bachelor’s + 2 years experience |
| North Carolina | Alternative pathway approved | Bachelor’s + 2 years relevant experience; effective January 1, 2026 |
| Ohio | Alternative pathways approved | Bachelor’s + 2 years experience or master’s + 1 year; effective January 1, 2026 |
| Oregon | Alternative pathways approved | Bachelor’s + 2 years or master’s + 1 year; effective January 1, 2026 |
| Pennsylvania | Alternative pathway enacted | Bachelor’s + 2 years experience |
| South Carolina | Alternative pathway enacted | Bachelor’s + 2 years experience |
| Tennessee | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2026 |
| Texas | Alternative pathway enacted | Bachelor’s + 2 years experience |
| Utah | Alternative pathway enacted | Bachelor’s + 2 years experience |
| Virginia | Alternative pathway approved | Bachelor’s + 2 years experience; effective January 1, 2026 |
| Washington state | Alternative pathway enacted | Bachelor’s + 2 years experience |
NOTE: All licensure pathways listed here are in addition to passing the Uniform CPA Exam.
The big shift across these updates is that many states are giving aspiring CPAs the chance to enter the workforce sooner and build real-world experience while earning their credentials.
Remember, each state has its own board of accountancy, and requirements can change quickly. If you’re working toward CPA licensure, always verify your state’s latest rules on its official website or with your academic advisor before planning your path.
Pros and Cons for Keeping the 150-Hour Rule
The debate over the CPA 150-credit requirement isn’t just academic. It’s shaping the future of the profession. Here’s a breakdown of the most common arguments on both sides:
Why Some Support Keeping the Rule
- Higher standards mean better preparation: The rule raises the bar, encouraging deeper study in areas like tax law, auditing, and ethics—subjects that matter in real-world accounting.
- Accounting is more complex than ever: Between international regulations, tech-driven tools, and evolving tax codes, CPAs today face challenges that demand more than a basic degree.
- It protects the public: The CPA license is built on trust. More education helps ensure CPAs have the knowledge and judgment to serve clients responsibly.
- It aligns with other professions: Like lawyers and doctors, CPAs serve the public in high-stakes situations. Requiring advanced education reinforces the profession’s credibility.
Why Others Say It’s Time for a Change
- Extra credits aren’t always relevant: Many students fill the 30 additional hours with electives that don’t directly improve their accounting skills. They do it just to check a box.
- It’s expensive and time-consuming: Tuition, lost income, and delayed entry into the workforce add up. That can make it especially challenging for students from lower-income or nontraditional backgrounds.
- It’s shrinking the pipeline: The rule is often cited as a major reason for fewer students pursuing the CPA track.
- It reduces diversity: Recent data from MIT’s Sloan School claims the 150-hour rule is responsible for a 26% decline in minority entrants into the field. The financial burden of the rule can disproportionately affect first-generation college students and candidates of color, making the profession less inclusive.
How to Meet 150 Hours if Your State Still Requires It
If you’re in a state that hasn’t changed the CPA 150-credit hour requirement, don’t stress. There are several ways to hit the mark without starting from scratch.
Here are some of the most common routes:
1. Add a master’s degree: Many accounting students go straight into a Master of Accountancy (MAcc) or MBA program after earning their bachelor’s. These programs are designed to push you past the 150-hour mark while deepening your expertise.
2. Double major, or minor strategically: If you’re still an undergrad, pairing your accounting major with a second major or minors in business, finance, or data analytics can help you hit 150 without staying an extra year.
3. Take extra courses at a community college or online: You don’t have to earn all 150 credits from the same school—or even from a university. Many students take lower-cost courses at accredited community colleges or through online programs to close the gap.
4. Combine work experience with coursework (where allowed): Some states may allow a hybrid path that combines work experience with additional coursework. Always check your state’s board of accountancy to see what counts.
How Many Accounting Credits Do You Need for the CPA Exam?
The total number of credits you need might be 150 (or 120 in a growing number of states), but what matters just as much is what those credits cover. Students must complete their coursework in a variety of accounting and general business disciplines.
Here’s a typical breakdown:
Common required accounting subjects:
- Financial accounting
- Auditing
- Taxation
- Managerial or cost accounting
Common business course categories:
- Business law
- Economics
- Finance
- Business communications
- Ethics
Some states take it even further, requiring a specific number of credits in auditing or mandating an accounting ethics course. Others are more flexible, especially if you’re applying through an “education plus experience” track.
Be sure to check your state board of accountancy’s education rules before enrolling in any courses.
What This Means for Aspiring CPAs
The rules are changing, but not everywhere. While many states are opening new pathways, many still require 150 credit hours and specific coursework in accounting and business. That means if you’re on the CPA path, plan ahead and make sure you’re prepared for both the coursework and the hands-on experience you need to get your license.
It’s also a chance to think bigger. The 150-hour rule might feel like a hurdle, but it can also be an opportunity to deepen your skills and stand out in a competitive industry.
If you’re serious about becoming a CPA, it’s important to start building your foundation now. Explore free tax classes and guided programs in tax preparation through Intuit Academy to earn valuable experience and explore career paths while you’re still in school.
FAQs
Are there changes expected in the 150-hour rule?
Yes. As of 2025, several states have already passed or are considering changes to the 150-hour rule. These include new pathways that substitute work experience or apprenticeship models in place of additional credit hours. However, many states still require the full 150, so it’s critical to check your state board’s latest updates.
Why was the 150-hour rule implemented for CPAs?
The 150-hour rule was created to raise the educational standard for CPAs as the profession became more complex. The extra coursework was intended to provide candidates with more in-depth knowledge in areas such as auditing, taxation, and business ethics. It was also designed to align accounting with other professions that require advanced education.
What are the alternatives to the 150-hour rule for CPA licensure?
Some states now allow CPA candidates to substitute 1 year of work experience or complete structured apprenticeship programs instead of earning the full 150 credit hours. Others are testing “120+30” models, where candidates can earn the final credits while working. These new pathways aim to reduce cost and increase accessibility without lowering professional standards
