Alaska is frequently cited as having some of the lowest or most flexible CPA requirements, allowing candidates to sit for the exam with only 120 hours (a bachelor's degree) and, in some cases, before finishing all education requirements. Other states with flexible or "alternative" pathways include Maine and the U.S. Virgin Islands, which sometimes offer options to substitute work experience for specific, rigid educational requirements.
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.
In recent months Texas, Tennessee, Iowa, Georgia, Indiana, Utah, Montana, Virginia, Hawaii, Ohio and New Mexico have passed new laws easing the path to CPA licensure.
While most states traditionally require 150 college credits for CPA licensure, several states, including Ohio, Virginia, California, Texas, Utah, Iowa, Illinois, Delaware, Arkansas, and Pennsylvania, are introducing or have passed laws for alternative pathways, often allowing licensure with 120 credits plus significant relevant experience, aiming to address talent shortages and make the profession more accessible. These changes often involve a bachelor's degree, passing the Uniform CPA Exam, and substantial work experience.
No single ``best'' state fits every candidate. For most people seeking a balance of market opportunity, reciprocity, and administratively smooth licensing, Texas, New York, California, Illinois, and Florida are top choices for different reasons.
According to the Bureau of Labor Statistics (BLS), the highest-paying states for CPAs in the U.S. are the District of Columbia, New York, New Jersey, Virginia, and California, with average salaries ranging from $89,000 to $105,000 per year.
You'll need 150 semester hours (225 quarter hours) which takes most people around five years. You'll need at least 120 semester hours (180 quarter hours) to sit for the CPA Exam. Passing all four sections of the CPA Exam takes between one and two years. You'll need at least one year of qualifying employment.
The overall pass rate across all sections averages approximately 50%, though this varies considerably by section and quarter. In 2024, the states with the highest pass rates were Nebraska with 61.9%, Utah with 58.6%, and Montana with 57.4%.
CPAs are quitting due to intense burnout from long hours, heavy workloads, and poor work-life balance, compounded by low salaries relative to other fields, monotonous tasks, and limited growth opportunities, with younger professionals also concerned about AI's future impact and a lack of purpose, creating a significant industry-wide talent shortage.
The states that have changed CPA licensing requirements to date this year are: Ohio, Virginia, Utah, Indiana, New Mexico, Iowa, Texas, Georgia, South Carolina, Tennessee, Minnesota, Montana, Oregon, Nevada, Hawaii, Alaska, Illinois, Connecticut, North Carolina, Pennsylvania, Delaware and California.
How hard is the FAR CPA exam? The FAR section of the CPA Exam is hard because it's the most comprehensive of the 4 exam sections, and it has a lot of math questions that are mentally taxing to get through. It has the lowest pass rate of all 4 exam sections and is considered the hardest CPA Exam section.
It's never too late to become a CPA. In fact, you may find the process more manageable at this stage in life.
Students should take the CPA exams between 2-3 months. If using 2 months to study, this will provide room to retake 1-2 exams and still finish within 12 months. If a student takes 3 months per exam, then they will need to pass each exam on the first try to pass in 12 months.
Yes, tax attorneys generally earn more than CPAs because they handle complex legal issues, court representation, and high-stakes tax litigation, commanding higher fees than CPAs who focus more on accounting, financial planning, and return preparation, although both can earn high salaries, especially in senior roles at large firms. A tax attorney's specialization in law often leads to higher earning potential, with median lawyer pay significantly exceeding that of accountants, though specific salaries depend heavily on experience, firm size, and location.
There is no limit. You may fail and retake as many times as needed, as long as you complete all four within 18 months.
Further, self-study material for CPA is comparatively economical compared to a classroom. Having noted the advantages of a self- study material of CPA, it is even more crucial to decide as to which is the most appropriate material that one should choose.
Determine how many hours a week you can study
You know that you will need to spend between 100 to 150 hours studying for each section of the CPA Exam. The next step is determining when you want to take the exam and how much time you can reasonably spend studying each week.