Meeting the 150-hour CPA credit requirement: a comprehensive guide

Becoming a CPA is perhaps the most significant milestone in an accounting career. For those who make the grade, higher salaries and more interesting opportunities await. But the road to CPA certification is full of challenges. 

In addition to passing the infamous exam and gaining a minimum amount of work experience, you must complete 150 credit hours. 

In this article, we’ll explain everything you need to know about the 150-hour requirement, including what it is and how to meet it. We’ll also explore some alternative pathways to gaining your CPA license and how they work. 

What are CPA credit requirements?

When embarking on the journey to CPA licensure, most candidates fixate entirely on the CPA exam. This is understandable — the CPA exam is notoriously difficult to pass. But before candidates can even sit the exam, they must first meet the CPA credit requirement.

The CPA credit requirement is set by the American Institute of Certified Public Accountants (AICPA). While there are varying credit requirements by state, candidates generally need to complete 150 credit hours of higher education. This is known as the 150-hour rule. 

While not all credits must be earned in a relevant field, states generally require a minimum number of credits in accounting-related education. In Texas, for example, you need at least 21 credit hours from an upper-level accounting course and 24 credit hours from an upper-level business course. 

In some states, candidates can sit the CPA exam after earning 120 credit hours. If they pass, they then have a set period in which they must earn the remaining 30 credits. Until they do, they cannot be awarded their license or practice as a CPA. In other states, 150 credit hours are required before sitting the exam.

The 150-hour rule explained

The 150-hour rule was introduced by AICPA back in 1988. Before that, all candidates needed to receive their CPA license was an undergraduate degree. By introducing the 150-hour rule, AICPA hoped that CPA candidates would be better prepared from the outset. It also helped distinguish CPA candidates from regular accountants.

That said, the introduction of the 150-hour rule has caused prospective CPAs a few headaches. To earn a bachelor’s degree, students typically need 120 credit hours. That leaves a shortfall of 30 credits required to become a CPA. As a result, CPA candidates need to consider different pathways and combinations of qualifications to meet the 150-hour requirement.

How to meet the 150-hour requirement

So how do you earn the full 150 credit hours? Well, there are several pathways to consider, combining bachelor’s degrees, master’s degrees, and other relevant accounting courses. Let’s explore the options in more detail. 

1. Bachelor’s degree + master’s degree

This is perhaps the most popular and straightforward way to get the 150 credit hours you need to become a CPA. 

Completing a bachelor’s degree will provide you with an initial 120 credits. Your bachelor’s degree doesn’t even need to be in an accounting-related field, making this an excellent route for those who decide they want to be a CPA later on in their education. Next, you can complete a master’s degree in a relevant field, such as:

• Master of Accounting (MAcc)
• Master of Science in Taxation (MST)
• Master of Business Administration (MBA) with an accounting focus

In most cases, these MAs will provide you with the minimum number of accounting-specific credits you need while bringing your overall number of credit hours to the 150 level. Moreover, they’ll provide you with a foundational understanding of accounting principles and practices that will set you up for CPA success.

2. Five-year integrated Bachelor’s + master’s program

Some universities offer integrated programs that combine a bachelor’s and master’s degree as part of a single five-year course. These integrated courses are designed to prepare students for the CPA exam and meet the 150-hour requirement. If you know you want to pursue a career in accounting and become a CPA as quickly as possible, this pathway is hard to beat.

3. Multiple bachelor’s degrees

Some prospective CPA students choose to take a second bachelor’s degree to get them over the 150-credit line. For example, the first degree might be in something related to accounting, like business administration, while the second is more accounting-specific. 

This has the advantage of providing a broad range of expertise and experience. It’s also a good route for those who decide they want to be a CPA later on in their educational journey. On the other hand, two separate degrees take many years to complete. 

4. Double majoring

Double majoring allows students to take one degree with two specializations. For example, a Bachelor of Science in Accounting and Finance. While it may involve more work during the study process, you can typically obtain 150 credit hours in the time it takes to complete one degree. 

5. Additional non-degree courses

If taking an additional bachelor’s or master’s degree isn’t convenient for you, there are other options for topping up your credit hours. For example, you can reach the 150-hour line by: 

• Taking online courses from accredited universities and colleges
• Enrolling in undergraduate courses in accounting, finance, or business 

Criticism of the 150-hour rule

In recent years, the 150-hour rule has come under fire. Some see it as an unnecessary barrier to entry that’s more of a box-ticking exercise than anything beneficial, as this thread on the r/Accounting subreddit highlights: 

Taking an additional degree can cost a huge amount of money, leading to crippling student debt. At the same time, extending your education delays your ability to earn money. With this in mind, critics — including Big Four firm KPMG — believe the 150-hour rule may deter talented students from pursuing a career as a CPA. This rule could be one of the factors driving a growing CPA shortage in the US. 

In response to these concerns, Ohio recently became the first state to drop the 150-hour requirement altogether. From 2026 onwards, Ohio candidates will either have to complete a master’s degree plus one year of relevant work experience or a bachelor’s degree with two years of relevant work experience. 

That said, not everyone agrees with this criticism. Some CPAs see the rule as a good thing because it raises the bar overall while making CPA expertise more valuable — as this poster on Reddit neatly sums up: 

Alternative pathways to CPA licensure

Many candidates find the traditional routes to meeting the 150-hour rule challenging. Some simply can’t afford to pursue a master’s degree or spend three more years completing an additional bachelor’s degree. Thankfully, there are several alternative routes to consider.

The following pathways may help reduce the financial burden and time investment associated with earning additional credits: 

• Accelerated bachelor’s degree programs. Some universities offer accelerated bachelor’s degree programs that pack more credit hours into a shorter timeframe. These programs allow you to complete 150 credit hours within four years by taking heavier course loads, summer classes, or accelerated online courses. It’s worth noting that this pathway requires a strong work ethic!
• Confirmation of work experience. In some states, it may be possible to use hands-on accounting experience to offset a portion of the educational requirement. For example, candidates may gain credits by completing internships under the supervision of a licensed CPA.
• Certification programs with retraining. Another pathway is enrolling in post-baccalaureate certification programs that focus on accounting and business. These programs are designed to help professionals with a non-accounting degree retrain as accountants and meet the CPA eligibility requirements. 

The bottom line

If you plan to become a CPA, you must understand the 150-hour requirement. While not always popular, many states require candidates to complete more than just a bachelor’s degree before sitting the CPA exam. Thankfully, there are several pathways to choose from. 

At TaxDome, we understand the demands placed on accountants and CPAs. That’s why we’ve designed our practice management platform to help you work smarter and faster. With automated workflows, enhanced collaboration, and a suite of tools to improve client engagement, TaxDome has got your back every step of the way.