How hard is the CPA exam in 2026?

The CPA exam has one of the lowest first-time pass rates of any professional licensing exam — historically around 45-55% per section. The exam was restructured in January 2024 to a new format (CPA Evolution) with three core sections and three discipline sections. Candidates typically study 300-400 hours total across all sections. About 20% of candidates pass all four sections on the first attempt; most take 18-24 months to complete all sections.

What are the education requirements to become a CPA?

Most states require 150 semester hours of college education (a typical bachelor's degree is 120 hours), including specific accounting coursework. This usually means a master's degree in accounting or a combined bachelor's/master's program, though some candidates fulfill the requirement through additional undergraduate coursework. The 150-hour requirement applies in all states except for exam eligibility — some states allow you to sit for the exam with 120 hours while requiring 150 for licensure.

How long does it take to become a CPA?

The typical timeline from starting an accounting degree to full CPA licensure is 5-7 years: 4-5 years for education (including the 150-hour requirement), 18-30 months to pass all four CPA exam sections, and 1-2 years of supervised work experience (depending on state requirements). Some accelerated programs and well-prepared candidates complete the process in closer to 5 years total.

How much does it cost to become a CPA?

Total costs vary significantly: CPA exam application and testing fees run approximately $3,000-$4,000 total across all sections (including NASBA registration, state application fees, and Prometric testing fees). Review courses (Becker, Wiley, Roger CPA) cost $1,500-$3,500. Add in the 150-hour education requirement (if a master's degree is needed, that's $20,000-$60,000 in tuition depending on the program). Many employers reimburse CPA exam fees and review courses.

What is the CPA exam structure under CPA Evolution in 2026?

The CPA Evolution framework (effective January 2024) restructured the exam into three core sections: Financial Accounting and Reporting (FAR), Auditing and Attestation (AUD), and Regulation (REG) — all required of every candidate. Candidates also choose one of three discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each section is approximately 4 hours. Sections must be passed within 30 months of passing the first.

How to Become a CPA: Requirements, Exam, and Timeline in 2026

April 25, 2026

The CPA Credential: Why It's Difficult and Why It Matters

The CPA license is one of the most rigorous professional credentials in the United States — alongside the bar exam, the medical licensing exams, and the PE engineering exam. It requires significant education, a multi-section examination with historically low pass rates, supervised experience, and ongoing continuing education. The difficulty is intentional: CPAs have legal authority to sign off on audited financial statements, represent clients before the IRS, and provide opinions relied upon by investors and regulators.

Understanding what CPAs go through to earn their license also helps clients recognize what they're paying for — and why the credential carries the weight it does.

Step 1: Meet the Education Requirements

The baseline requirement across all states is a bachelor's degree with specific accounting coursework. However, 49 states (all except Alaska for initial exam eligibility) require 150 semester hours of college education for full licensure — 30 more hours than a typical four-year degree.

The most common paths to meet the 150-hour requirement:

5-year combined bachelor's/master's in accounting — Many universities offer an integrated program (150 credits) designed specifically for CPA track students.
Bachelor's in accounting + Master of Accountancy (MAcc) — A separate master's program, typically 30 credit hours, taken after completing the bachelor's. Cost varies widely: $15,000-$60,000 depending on the program.
Bachelor's in accounting + additional undergraduate coursework — Some candidates take additional undergraduate classes to reach 150 hours without pursuing a full graduate degree.

The required accounting content varies by state but typically includes intermediate and advanced accounting, auditing, tax, and cost accounting. Check your state's Board of Accountancy for specific requirements — NASBA maintains a reference tool at nasba.org.

Step 2: Pass the CPA Exam

The CPA Evolution Structure (2024 and Beyond)

The CPA exam was significantly restructured in January 2024 under the "CPA Evolution" initiative. The new format:

Core sections (all required):
- Financial Accounting and Reporting (FAR) — financial statements, governmental and not-for-profit accounting, IFRS
- Auditing and Attestation (AUD) — audit procedures, professional standards, ethics
- Regulation (REG) — federal taxation, business law, ethics
Discipline sections (choose one):
- Business Analysis and Reporting (BAR) — financial analysis, business valuation, financial risk management
- Information Systems and Controls (ISC) — IT auditing, cybersecurity, data management
- Tax Compliance and Planning (TCP) — individual and entity taxation, tax planning

Each section is approximately 4 hours long and includes multiple-choice questions (MCQs) and task-based simulations (TBSs). The passing score is 75 (on a 0-99 scale). All four sections must be passed within a 30-month window from the date you pass your first section.

Pass Rates and Study Time

Historical first-time pass rates per section hover between 45-60%. FAR is historically the most difficult; AUD tends to be the most straightforward. Most candidates study 80-120 hours per section — the AICPA recommends 300-400 total hours for all sections combined.

Major review courses: Becker CPA ($2,000-$3,500), Wiley CPA ($1,500-$2,500), Roger CPA (now part of UWorld, $1,500-$2,500). Most large public accounting firms reimburse these costs for new hires who are CPA candidates.

Step 3: Gain Supervised Work Experience

Most states require 1-2 years of supervised accounting experience under a licensed CPA before issuing the license. The experience must be in an area the CPA can verify — public accounting (audit, tax, advisory), industry accounting, or government accounting. Some states require experience to be completed before licensure; others allow concurrent exam-taking and experience accumulation.

Public accounting firms (Big 4, large regional, mid-size) are the most common path because they provide structured supervision and a clear record of verified experience hours. Industry accounting positions at companies with a CPA supervisor also qualify in most states.

Step 4: Pass the Ethics Exam

Most states require passing an ethics exam administered by the AICPA (the Professional Ethics: The AICPA's Comprehensive Course) or a state-specific ethics exam. The AICPA ethics course costs approximately $200 and is open book. Some states have additional requirements — California, for example, requires 10 semester hours of ethics coursework and a separate state ethics exam.

Step 5: Apply for Licensure and Pay State Fees

Once education, exam, experience, and ethics requirements are met, you apply to your State Board of Accountancy for the CPA license. Fees vary by state — typically $50-$200 for the initial license. The license is valid for 1-2 years before requiring renewal.

Continuing Education Requirements

Once licensed, CPAs must complete 40 hours of continuing professional education (CPE) annually (or 80 hours per two-year period, depending on the state). At least 4 of those hours must be in professional ethics. Large accounting topics — new ASC standards, tax law changes, emerging areas like cryptocurrency — drive the CPE curriculum in practice.

Failure to complete CPE requirements results in license suspension. Most state boards conduct random CPE audits, and expired or suspended CPAs are listed in the public license database — another reason to verify a CPA's license status before engaging one. Find a currently licensed CPA: search near you or browse by city.

Frequently Asked Questions

How hard is the CPA exam in 2026?: The CPA exam has one of the lowest first-time pass rates of any professional licensing exam — historically around 45-55% per section. The exam was restructured in January 2024 to a new format (CPA Evolution) with three core sections and three discipline sections. Candidates typically study 300-400 hours total across all sections. About 20% of candidates pass all four sections on the first attempt; most take 18-24 months to complete all sections.
What are the education requirements to become a CPA?: Most states require 150 semester hours of college education (a typical bachelor's degree is 120 hours), including specific accounting coursework. This usually means a master's degree in accounting or a combined bachelor's/master's program, though some candidates fulfill the requirement through additional undergraduate coursework. The 150-hour requirement applies in all states except for exam eligibility — some states allow you to sit for the exam with 120 hours while requiring 150 for licensure.
How long does it take to become a CPA?: The typical timeline from starting an accounting degree to full CPA licensure is 5-7 years: 4-5 years for education (including the 150-hour requirement), 18-30 months to pass all four CPA exam sections, and 1-2 years of supervised work experience (depending on state requirements). Some accelerated programs and well-prepared candidates complete the process in closer to 5 years total.
How much does it cost to become a CPA?: Total costs vary significantly: CPA exam application and testing fees run approximately $3,000-$4,000 total across all sections (including NASBA registration, state application fees, and Prometric testing fees). Review courses (Becker, Wiley, Roger CPA) cost $1,500-$3,500. Add in the 150-hour education requirement (if a master's degree is needed, that's $20,000-$60,000 in tuition depending on the program). Many employers reimburse CPA exam fees and review courses.
What is the CPA exam structure under CPA Evolution in 2026?: The CPA Evolution framework (effective January 2024) restructured the exam into three core sections: Financial Accounting and Reporting (FAR), Auditing and Attestation (AUD), and Regulation (REG) — all required of every candidate. Candidates also choose one of three discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each section is approximately 4 hours. Sections must be passed within 30 months of passing the first.