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 aspiring accountants complete 150 semester hours of college credit, significantly more than the standard 120 hours for a bachelor's degree, plus passing the CPA exam and gaining relevant experience, to ensure higher competency and better-rounded professionals, though it's faced criticism for creating barriers to entry and potential talent shortages, leading some states to adopt new pathways.

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.

NEW 120 Hour CPA Pathway Explained! - 2024/2025

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%.

What states don't require 150 hours for CPA?

While most states still require 150 hours for full CPA licensure, several, including Virginia, Ohio, Utah, South Carolina, Oregon, Illinois, and others, are enacting alternative pathways, often swapping those extra credits for more work experience or different educational tracks, making licensure more accessible by allowing entry with 120 credits and experience.
 

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.

Do accountants work 100 hours a week?

On average, accountants work between 40-70 hours a week, some even reaching 100 hours during busy seasons, depending on the sector, company, and position. That's the most straightforward answer I could give you.

How to get 150 credit hours?

How will you earn your 150 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)

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. 

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 a CPA higher than an accountant?

Yes, a CPA (Certified Public Accountant) is considered a higher, more specialized level than a general accountant, as every CPA is an accountant, but not every accountant is a CPA; CPAs meet stringent state licensing, education (150+ college credits), and exam requirements, allowing them to perform unique services like auditing public companies and representing clients before the IRS, leading to greater responsibility and earning potential. 

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. 

What is the easiest state to get CPA?

What State Is Best for the CPA License? If you want to take the CPA exam as early as possible with fewer requirements, Alaska is a good state to get your CPA license in because it allows candidates to sit while completing an undergraduate degree if within 18 hours of meeting bachelor's degree requirements.

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 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.

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.

Is CpaCredits legit?

All courses offered through CpaCredits.com are through Regionally Accredited University partners and are accepted by all state boards. Regionally accredited College Partner of CpaCredits.com.

Is a CPA harder than a bar?

There's no definitive answer, as it's subjective, but many who've taken both find the CPA Exam harder due to its four distinct sections, breadth of technical accounting knowledge, and the need to pass all within 18 months (a marathon), while the Bar Exam is often seen as a more intense, physically demanding sprint over two days testing broad legal concepts. The CPA's difficulty often comes from its multifaceted nature and the challenge of mastering different accounting/tax areas, whereas the Bar's challenge lies in the sheer volume of legal information and mental stamina required over consecutive days. 

Can I pass the CPA in 3 months?

You may wonder, can you really pass all four sections of the CPA exam in 3 months? The answer is yes, you can! While the preparation will be tedious, it's definitely doable.

What is the difference between a CPA and EA?

The primary difference between an EA and CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and typically have a broader knowledge of accounting and taxation. So, if you're thinking of hiring an EA or CPA, which one will fit your needs the best? That depends on the type of services you need.