US CPA 120 Credits vs 150 Credits: Exam Eligibility and Licensure
By SimplyCPA · 11 October 2026
On this page (6)
- Exam vs licence: Many boards let you sit for the exam with 120 semester hours (a bachelor's) but have required 150 for the licence.
- Three licensure pathways (UAA, 2025): Graduate degree in accounting + 1 year of experience; bachelor's + 30 extra hours (150) + 1 year; or — new — bachelor's in accounting (120) + 2 years of experience.
- Adoption: The AICPA reports that about half of states have adopted the third pathway; for example, Virginia from January 1, 2026 and Texas from August 1, 2026.
- Mobility: The model law is moving to an individual-based practice privilege, so mobility depends on the CPA's own credentials rather than the home state's.
- For Indian candidates: The new pathway helps if your evaluation shows a US-equivalent bachelor's — it doesn't help if your degree evaluates below 120 hours.
Where 120 and 150 come from
A US bachelor's degree is about 120 semester hours. For decades, most states required 150 hours — roughly a bachelor's plus a fifth year — for CPA licensure, while allowing candidates to sit for the exam at 120 hours. That two-tier system is why many candidates pass the exam before they're eligible for a licence.
The three pathways in the Uniform Accountancy Act
In 2025 NASBA and the AICPA updated the Uniform Accountancy Act (UAA) — the model law states use — to recognise three routes to licensure:
| Pathway | Education | Experience | Exam |
|---|---|---|---|
| 1 | Graduate degree in accounting | 1 year | CPA Exam |
| 2 | Bachelor's in accounting + 30 additional hours (150 total) | 1 year | CPA Exam |
| 3 (new) | Bachelor's in accounting (120 hours) | 2 years | CPA Exam |
The UAA is a model, not law. Each state must change its statute or rules, and the definition of qualifying experience is set by each board.
Which states have adopted the new pathway?
The AICPA reports that about half of the states have adopted the third pathway, with more planning legislation in 2026. Two examples from state boards:
- Virginia — effective January 1, 2026.
- Texas — effective August 1, 2026 ("Pathway B"), requiring two years of full-time accounting experience directly supervised by a CPA.
New York's board page also describes a 120-semester-hour licensure pathway from November 21, 2026. NASBA maintains a current list and map of jurisdictions on its New Licensure Pathways page — check it before you plan.
Mobility changes too
Previously, a CPA's ability to practise in another state depended on whether their home state was "substantially equivalent". The updated UAA moves to an individual-based practice privilege: mobility depends on the individual's own education, exam and experience. That reassures candidates who license through the 120-hour route.
What it means for Indian candidates
- If your evaluation shows a US-equivalent bachelor's degree with an accounting concentration, the new pathway may let you license without a fifth year of study — at the cost of an extra year of experience.
- If your three-year degree evaluates below 120 hours, the new pathway doesn't remove the gap; you still need additional credits.
- Some boards' new pathways specify a bachelor's degree in accounting, or a concentration — check the exact wording.
- Washington's option of a bachelor's plus 30 additional hours for licensure is set to expire on December 31, 2035, showing how rules continue to shift.
See also education requirements by state and CPA eligibility requirements.
Sources
- NASBA — New CPA licensure pathways and CPA mobility
- NASBA — Ninth edition of the Uniform Accountancy Act
- AICPA & CIMA — State policy trends shaping accounting in 2026
- Texas State Board of Public Accountancy — New pathway for CPA exam and certification
- NASBA — New York CPA Exam requirements
- NASBA — Washington CPA Exam requirements