What is the 150-hour rule?

The 150-hour rule is a requirement for becoming a Certified Public Accountant (CPA) in the U.S., mandating that candidates complete 150 college credit hours (typically a master's degree or extra undergraduate courses) plus experience, instead of the standard 120 hours for a bachelor's, to ensure better-prepared professionals, though it's faced criticism for creating talent shortages and barriers for minorities, leading to new alternative licensure pathways in some states.

When did the 150-hour rule start?

In 1988, 84% of the AICPA voting members supported the proposal that requires all new members to have completed 150 credit hours of college education by the year 2000. As of 27 October 1998, 45 jurisdictions have adopted the 150-hour rule.

What does 150 semester hours mean?

To obtain a license, most states have required candidates to pass the CPA exam as well as to complete 150 hours of college credit hours — which effectively means a fifth year of schooling — plus one year of professional experience.

Why do accountants need 150 credit hours?

However, in 1988, the American Institute of Certified Public Accountants (AICPA) recommended that state accounting boards raise that requirement to 150 credit hours. For the most part, adding this requirement came from the idea that extra education before licensure would make for more well-rounded CPAs.

What is the 150-hour rule for Nasba?

Traditional 150-Hour Pathway: Bachelor's degree in accounting + 30 additional semester credits (total 150 semester hours) + one (1) year of experience + passing the CPA Exam. New 120-Hour Pathway: Bachelor's degree in accounting (120 semester hours) + two (2) years of professional experience + passing the CPA Exam.

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How to get 150 credit hours for CPA?

Options for earning 150 credit hours

1. Degree-ing it up. Since you'll soon be taking an accounting-based exam, it might make sense to jump into a graduate-level program focused on that very subject. ...
2. Double majoring. ...
3. Taking more classes (without the degree fees) ...
4. Get involved with your community (college)

What is the hardest CPA Exam to pass?

Statistically, BAR has the lowest pass rate at 40%, followed closely by FAR at 41%, making them the hardest to pass, while TCP has the highest pass rate at 76%. However, when CPA candidates were surveyed, FAR was overwhelmingly chosen as the most difficult by 63% of respondents, with AUD in second place at 24%.

Can you get a CPA without 150 credits?

In California, you'll need to complete at least 150 college credits before you can become a CPA. A traditional bachelor's degree usually includes 120 credits, which means you'll need to complete additional education, such as a master's degree or graduate certificate.

What 3 states scrap the stringent 150 hour education requirement?

“By modernizing the licensure pathway, we are making the profession more accessible while maintaining the highest standards of competency and integrity.” Utah will reportedly become the third state to shed the 150-hour rule, following in the footsteps of Virginia and Ohio, according to CFO Dive.

How many years is 150 credit hours?

150 credit hours is equivalent to 5 years of higher education. It can be accumulated in different ways: 4 years of bachelor + 1 year of master's degree, typically in accounting.

How to get extra 30 credits for CPA?

In a 2024 blog post, author Janet Berry-Johnson provided five common ways CPA candidates can achieve the 30 extra credits:

1. Go to grad school. ...
2. Take community college classes. ...
3. Enroll in Experience, Learn and Earn (ELE). ...
4. Utilize CPA Credits. ...
5. Take college level examination program (CLEP) exams.

Is 3 credits the same as 3 credit hours?

Yes, generally a 3-credit course means about 3 hours of class time per week, plus an expectation of 6 hours of outside study, totaling around 9 hours of work weekly (or 135 total hours in a semester), following the standard of 1 hour of instruction to 2 hours of study per credit. While 3 credits usually means 3 hours in class, the actual time commitment varies, especially in STEM where labs add hours. 

What states require 150 hours for CPA?

CPA Graduation Requirements

Also, most states do adhere to the 150-Hour Rule, but many states will let you sit for the CPA exam before completing the entire 150 hours of additional coursework, including Arizona, California, and New York. Not an accounting major? Find out how you can earn your CPA.

Is a CPA higher than an accountant?

Yes, a CPA (Certified Public Accountant) is considered a higher, more specialized level than a general accountant, as all CPAs are accountants, but not all accountants are CPAs; CPAs have met rigorous education, exam, and experience requirements, allowing them to perform specialized tasks like auditing and representing clients before the IRS, which unlicensed accountants cannot do, and they adhere to stricter ethical codes. 

Is CPA losing its value?

The CPA credential remains a cornerstone of the profession, but new data indicate its prominence is steadily declining. Between 2020 and 2024, the average percentage of staff holding CPA licenses across all firms dropped from 56.0 percent to 48.4 percent.

Can a CPA make 300k a year?

Yes, a CPA can absolutely make $300k, especially in senior leadership roles like Partner, CFO, or Director in large firms or corporations, or by owning a successful practice, though it typically requires significant experience (10+ years), specialization, business development, and working in high-cost areas like major cities, with partners at large firms often earning well over $300k. 

Which CPA Exam is the hardest in 2025?

In 2025, the Business Analysis and Reporting (BAR) discipline has statistically been the hardest CPA exam section based on the lowest pass rates (around 38-40%), closely followed by Financial Accounting and Reporting (FAR), due to its massive content and complexity, though some find AUD's subjectivity tough; however, difficulty is subjective, with BAR and FAR being the toughest statistically, while Tax Compliance and Planning (TCP) is generally the easiest. 

Can you be an accountant without a CPA license?

And if you've started poking around at job postings, college programs, or professional goals, you might be wondering: Do I need to be a CPA to be an accountant? The short answer? No, you don't! While becoming a CPA is one path in the accounting world, it's not the only one.

Is there still a shortage of CPAs?

U.S. faces CPA shortage, with 124,200 new accounting jobs per year expect to open through 2034. Wiss expands recruiting beyond accounting majors and adopts AI tools. Grassi's employee ownership model helps attract and retain talent. Goldstein Lieberman stresses training and in-house growth over outsourcing.

Is it illegal to be an accountant without a degree?

The short answer is no. While all states do stipulate at least a bachelor's degree from a higher learning institution and 150 semester hours (225 quarter hours) of earned credit,1 there are five states that do not require your degree to be in accounting: Alaska. Georgia.

What degrees do most CPAs have?

Earn a master's degree.

While candidates can sit for the Uniform CPA exam with a bachelor's degree (120 semester hours), many states require 150 hours of education to obtain CPA licensure. A master's degree in accounting satisfies the 150-hour requirement.

Is 150 credits a master's degree?

Many students pursue a master's degree as part of their studies to become a CPA. Requirements to become a CPA typically include 150 college credits, which is 30 more than most bachelor's degrees. A master's degree generally requires 30 to 45 credits, which are often used to fulfill CPA requirements.

Is a CPA harder than a bar?

Most people find the CPA exam harder than the Bar exam due to its multi-section format, requiring passing four parts within 18 months, compared to the Bar's intense but shorter, single-test focus; however, difficulty is subjective, depending heavily on your strengths, with the CPA testing broad accounting/business knowledge and the Bar testing legal reasoning, often leading to CPA candidates (especially those with JD/CPAs) finding the CPA more challenging, despite the Bar often having lower average pass rates in some jurisdictions. 

Which is the 3 toughest exam in the world?

The three toughest exams globally often cited for their extreme difficulty, low pass rates, and high stakes are China's Gaokao (National College Entrance Exam) for its sheer scale and competitiveness, India's UPSC Civil Services Exam for its life-altering potential and minuscule selection, and India's IIT-JEE Advanced (Joint Entrance Exam) for its rigorous engineering entrance criteria, alongside prestigious UK fellowships like the All Souls Prize Exam, with difficulty varying by individual and goals. 

How many times can I fail a CPA Exam?

There is no limit as to the number of times you may repeat a failed section. You may take any unpassed section of the CPA Exam year-round. Your only restriction is waiting to receive your score from a previous attempt of the same section.