Accounting Degree CPA Requirements USA – Pass Rates & Salary Expectations 2025

To become a CPA in the USA, you need a bachelor’s degree in accounting (120 credits minimum), completion of 150 total credit hours, passage of the four-section CPA Exam with 75+ scores, and 1-2 years of verified work experience. CPA Exam pass rates vary by section: FAR averages 43%, AUD 48%, REG 64%, with the newer TCP section reaching 78%. Average CPA salaries range from $79,000 to $122,000 annually, with CPAs earning 10-15% more than non-certified accountants.

Jennifer spent four years earning her accounting degree, aced her coursework, and landed a staff accountant role at a mid-sized firm. Then HR dropped the news: without her CPA license, she’d hit a salary ceiling within three years. The path forward required another 30 credit hours, hundreds of study hours, and four grueling exams she wasn’t sure she could pass.

This scenario plays out thousands of times annually across America. In 2024, 74,165 candidates attempted the CPA exam, with only 13,070 passing their final section—a stark reminder that the CPA credential demands serious preparation. Yet those who earn it unlock substantially higher earnings and career flexibility that non-certified accountants never access.

You’re about to discover exactly what accounting degree requirements lead to CPA eligibility, which exam sections pose the biggest challenges, how recent rule changes might shorten your path to licensure, and what salary expectations you should have at each career stage. Whether you’re choosing a college major or planning your next certification, this guide cuts through the confusion with current data and practical strategies.

The Accounting Degree Foundation: What You Actually Need

Most aspiring CPAs assume any accounting degree automatically qualifies them for the exam. That assumption causes problems when they discover credit hour breakdowns matter as much as degree titles.

A bachelor’s degree typically consists of 120 credit hours, which allows students to take the CPA exam in some states but does not meet licensure requirements. Here’s where it gets tricky: you can sit for the exam with 120 hours in many jurisdictions, but you can’t actually receive your CPA license until hitting 150 hours.

The curriculum composition within those 120 hours follows strict guidelines. Most states divide requirements into accounting courses requiring 24-30 credits, business courses requiring 24 credits, and general education or electives filling the remaining 60-72 credits. Those accounting credits must cover specific topics: financial accounting, auditing, taxation, cost accounting, and business law can’t be substituted with generic business classes.

Your choice of school matters more than prestige alone. Regional accreditation becomes non-negotiable—state boards reject credits from unaccredited institutions regardless of your grades. AACSB-accredited business programs carry extra weight with employers, though they’re not required for CPA eligibility. The curriculum structure should clearly align with your state’s board of accountancy requirements, which vary significantly.

California enforces stricter coursework mandates than most states, requiring specific ethics and business courses beyond the standard accounting foundation. New York allows exam eligibility at 120 hours but demands 150 for licensure, creating a multi-year timeline between exam passage and actually practicing as a CPA. Texas mandates particular accounting credit distributions within the 150-hour rule, limiting your flexibility in course selection.

The 150-hour requirement has sparked controversy recently. Research shows the 150-hour rule caused a 14% overall decline in new CPAs entering the field, with minority candidates experiencing a 26% drop. Critics argue the additional year creates unnecessary barriers without improving service quality. However, every state still requires those hours for now, making them unavoidable despite ongoing debates about reform.

The CPA Exam Reality: Pass Rates That Tell the Truth

Let’s address the elephant in the room: the CPA Exam maintains a reputation for difficulty that’s completely justified by current data. Understanding exactly which sections challenge candidates most helps you strategize your approach rather than hoping for the best.

Pass rates vary dramatically by section, with Financial Accounting and Reporting hovering around 43%, Auditing and Attestation at 48%, Regulation at 64%, and the newer Tax Compliance and Planning section achieving 78%. These numbers aren’t random—they reflect both content difficulty and candidate preparation levels.

The 2024 introduction of CPA Evolution restructured the exam fundamentally. The traditional four-section format (AUD, FAR, REG, BEC) transformed into three core sections plus a choice of discipline sections. Under CPA Evolution, all candidates must pass three core sections: Auditing and Attestation, Financial Accounting and Reporting, and Taxation and Regulation, then choose one discipline section among Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning.

Here’s what the current pass rate landscape looks like across all sections:

The pass rate for REG exceeded 63% in 2024, while FAR remained around 41%, confirming that Financial Accounting poses the stiffest challenge. The volume of material in FAR combined with complex consolidation and government accounting topics overwhelms many first-time test takers.

But wait—there’s an important nuance about what “passing” actually means. To pass a CPA Exam section, you must score a minimum of 75, with scores reported on a scale from 0 to 99 that does not represent a percentage correct. This scaled scoring system means you can’t simply calculate how many questions you need correct. The AICPA weighs question difficulty, meaning a harder exam form doesn’t penalize you compared to an easier version.

Pass rates vary by age, with younger candidates (recent graduates) faring better than older candidates—sometimes by as much as 20%. This age gap likely stems from recent graduates maintaining study habits and remaining familiar with academic testing formats. Career professionals five or ten years removed from college need extra time rebuilding those test-taking muscles.

The strategic takeaway? TCP continues to lead as the most passable section, with cumulative pass rates above 73% all year, while FAR and BAR emerged as the toughest sections, both falling below 40% in fourth quarter testing. If you’re choosing a discipline section purely based on pass rates, TCP offers the clearest advantage—though career goals should ultimately drive your decision.

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The 150-Hour Rule: New Pathways Emerging

The traditional path to CPA licensure required five years of education or its equivalent. That model is fracturing as states recognize the barrier it creates for talent recruitment.

Today, every state, jurisdiction, and the District of Columbia has adopted the 150-hour rule, but within those hours, there are variations between state boards of accountancy. However, significant changes are underway that could reshape your timeline dramatically.

On May 14, 2025, the boards of AICPA and NASBA approved adding an option where candidates could earn their CPA license with a bachelor’s degree, two years of professional experience, and passing the CPA Exam as an alternative to 150 credit hours, one year of experience, and passing the exam. This competency-based pathway acknowledges that professional experience can substitute for classroom hours.

Several states have already implemented alternatives. California’s new licensing requirements, effective January 1, 2027, allow candidates to earn a bachelor’s with accounting concentration, pass the CPA Exam, and complete two years of general accounting experience. The traditional 150-hour pathway remains available, but candidates now choose which route fits their circumstances better.

Here’s how you can reach 150 hours through various pathways:

Master’s Degree Route: The most straightforward approach involves completing your bachelor’s (120 hours) plus a one-year master’s program in accounting or MBA (30 hours). Most major accounting firms prefer this path, and many offer tuition reimbursement for employees pursuing master’s degrees. The added benefit? Graduate coursework provides deeper specialization in tax, audit, or advisory services that directly enhances job performance.

Accelerated Undergraduate Programs: Some universities offer accelerated bachelor’s degree programs that pack more credit hours into a shorter timeframe, allowing completion of 150 credit hours within four years through heavier course loads, summer classes, or accelerated online courses. This option saves both time and money but demands exceptional discipline to handle 15-18 credits per semester consistently.

Community College Credits: The budget-conscious strategy involves completing your bachelor’s degree, then taking 30 additional credits at community colleges or through online platforms. Most states do not mandate these additional credit hours in a specific field of study, meaning you can take extra classes in any topic including art history or creative writing. A statistics course from your local community college costs 75% less than the same credit at a private university but counts identically toward the 150-hour requirement.

Work Experience Substitution: The emerging competency-based pathway lets verified professional experience replace classroom hours. Ohio’s alternative pathway allows licensure by attaining a year of full- or part-time paid or volunteer work providing services using accounting, tax, or consulting skills, with licensed CPAs attesting proficiency in seven professional competencies and one of three technical competencies. Professional competencies include communication and critical thinking, while technical competencies cover tax, audit, or financial reporting.

The cost-benefit analysis becomes crucial here. Traditional master’s programs run $20,000-$60,000 depending on institution prestige and whether you attend full-time or part-time. Community college credits cost roughly $500-$1,500 per three-credit course, meaning 30 credits total between $5,000-$15,000. The work experience pathway eliminates tuition entirely but extends your timeline before licensure.

Which path makes sense depends on your current situation. Recent graduates with momentum should consider master’s programs that provide networking and recruiting advantages. Working professionals five years into their careers benefit more from community college credits or the experience pathway, avoiding career disruption while checking the licensure box.

CPA Exam Strategy: Sections to Take First

Sequencing your exam sections strategically can mean the difference between passing all four within 18 months versus struggling for three years. The wrong order creates unnecessary obstacles that drain your motivation.

FAR became more concentrated with analysis-heavy content and is often taken first before candidates have built testing momentum, with some experts suggesting tackling FAR early while coursework is fresh. This advice makes sense for recent graduates whose advanced accounting knowledge remains sharp. Taking FAR first means conquering the hardest section when your academic foundation is strongest.

However, the strategy flips for working professionals years removed from college. Starting with REG or your chosen discipline section (particularly TCP given its high pass rate) builds confidence through an early win. That momentum carries you into tougher sections with proof you can pass these exams.

The 18-month exam window creates pressure. Once you pass your first section, you have 18 months to pass the remaining three before that first passing score expires. Strategic sequencing accounts for this ticking clock. Many candidates take two sections relatively close together (6-8 weeks apart), then take a recovery break before attempting the next pair.

Avoid stacking too many exams late in the year, as fourth quarter often shows decreased performance, likely due to end-of-year burnout or scheduling pressure. The November and December testing windows coincide with year-end close for accountants, creating time pressure exactly when you need maximum study focus.

Here’s a proven sequencing strategy that accounts for both difficulty and professional demands:

For Recent Graduates: FAR first (while knowledge is fresh) → AUD second (leverage FAR concepts) → REG third (recover with moderate difficulty) → Discipline section last (finish strong with easier material).

For Working Professionals: REG or TCP first (build confidence) → AUD second (moderate challenge) → FAR third (tackle hardest section with momentum) → Remaining discipline section last (complete requirements).

For Tax Professionals: REG first (leverage daily work) → TCP second (capitalize on tax knowledge) → FAR third (greatest stretch) → AUD or alternative discipline last.

Study materials matter as much as sequencing. From Q1 2024 to Q2 2025, Becker’s Exam Day Ready students achieved a 64% higher pass rate than all other exam takers, with specific improvements of 75% for AUD, 81% for FAR, and 57% for REG. Quality review courses cost $2,000-$4,000 but dramatically improve pass rates compared to self-study alone. Many employers cover these costs for full-time employees pursuing licensure.

CPA Salary Expectations: What You’ll Actually Earn

Let’s talk money, because that’s ultimately why most people pursue certification despite the exam’s difficulty and the 150-hour requirement.

As of October 2024, the average CPA accountant salary in the US is $79,284, though this varies significantly based on experience, company, position, and location. That figure represents the median—half of CPAs earn more, half earn less. But the range spans dramatically from entry-level to senior positions.

CPAs can expect to earn 10-15% more on average than non-CPAs, with entry-level senior tax accountants earning an average of $69,124 per year while those with 5-10 years of experience earn $85,526 to $111,523 annually. That 10-15% premium compounds over your entire career, translating to hundreds of thousands in additional lifetime earnings.

Here’s the salary progression most CPAs experience:

Entry-Level (0-1 years): The average salary for entry-level CPAs is about $64,000, though the entry-level CPA salary range spans from $44,000 to $84,500 depending on location and employer. Geographic location drives much of this variation—$64,000 in Kansas provides significantly more purchasing power than the same salary in New York City.

Early Career (1-4 years): Gaining experience from less than a year to 1-4 years adds $10,000 to your average annual pay, bringing salaries into the $74,000-$84,000 range. These years involve building specialized skills in audit, tax, or advisory work while taking on progressively complex client assignments.

Mid-Career (5-9 years): The jump to 5-9 years of experience adds another $13,000 per year on average, pushing salaries to $87,000-$97,000. At this stage, many CPAs transition into senior accountant or supervisor roles, managing teams and signing off on financial statements.

Experienced (10-19 years): Another $13,000 annual increase brings salaries to $100,000-$110,000 for CPAs in their second decade. These professionals typically hold manager or director titles with substantial responsibility for client relationships and firm profitability.

Senior Level (20+ years): Achieving 20+ years of experience averages another $9,000 annual increase, though at this level, many CPAs earn well beyond $150,000 through partner shares, bonuses, or C-suite corporate positions.

Geographic location creates substantial salary variations. CPAs make the most in New York at an average of $113,310 per year, though the average cost of living for a family of four is $93,600, leaving disposable income of around $19,710. Meanwhile, CPAs in Kansas earn an average of $75,885 per year with cost of living at about $42,600 yearly, providing roughly $33,285 of disposable income. The Kansas CPA enjoys more financial flexibility despite earning $37,425 less annually.

Industry affiliation also affects compensation. CPAs working in finance and insurance earn the highest annual salaries at $79,310, followed by those in accounting, tax preparation, bookkeeping, and payroll services earning $77,080 on average. Big Four firms (Deloitte, Ernst & Young, PwC, KPMG) typically pay 15-25% above regional firms for comparable positions but demand 55-70 hour workweeks during busy season.

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Here’s a realistic comparison showing CPA vs. non-CPA salary trajectories:

Studies show that over the course of a career, the average CPA earns $1 million more than non-CPA counterparts. That million-dollar premium justifies the exam difficulty, study investment, and 150-hour requirement when viewed across your entire working life.

The ROI calculation becomes even clearer when you factor exam and study costs. Total CPA certification expenses (exam fees, review courses, additional credits) range $5,000-$15,000. With CPAs earning $10,000-$35,000 more annually depending on experience level, you recoup certification costs within 6-18 months of licensure.

Employer Support and Career Advancement

The best CPA candidates don’t fund certification alone—they leverage employer support programs that cover substantial portions of expenses while maintaining full-time employment.

Having a CPA is valued at +12% to any salary range while a CMA (Certified Management Accountant) is valued at +8%, making the CPA the single most impactful credential for salary negotiation. Employers recognize this value, which explains why many subsidize certification pursuit for promising employees.

Most Big Four and regional accounting firms offer comprehensive support including exam fee reimbursement, review course coverage, and study leave policies. Typical packages provide $3,000-$5,000 toward exam-related expenses plus 10-40 hours of paid study time before each exam section. The catch? Most programs require 12-24 month employment commitments after certification, with repayment clauses if you leave early.

Corporate finance departments increasingly offer similar benefits. Fortune 500 companies recognize that CPAs in controller, financial planning, and internal audit roles add value worth subsidizing. Expect $2,000-$4,000 annual tuition assistance that covers both the 150-hour requirement and exam costs.

Career advancement accelerates dramatically post-certification. The typical progression in public accounting follows: Staff Accountant (0-2 years) → Senior Accountant (2-4 years) → Manager (4-7 years) → Senior Manager (7-10 years) → Partner (10+ years). Without CPA licensure, progression stalls at Senior Accountant level regardless of performance quality.

Among universities with the most candidates sitting for first-time sections in 2024 were University of Illinois Urbana-Champaign (524), Baruch College CUNY (502), and California State University, Fullerton (472). These high-volume programs demonstrate strong relationships with recruiters and often provide dedicated CPA preparation resources that improve pass rates.

The credential also enables lateral career moves that non-CPAs can’t access. CFO positions at mid-sized companies typically require CPA licensure, as do partner-track roles at any reputable accounting firm. Even in industries like technology or healthcare where accounting isn’t the primary focus, CFO candidates with CPAs command 20-30% salary premiums over those without.

Specialized CPA Paths Worth Considering

The CPA license itself opens doors, but additional specializations multiply your market value and often lead to higher compensation tiers.

Many CPAs pursue supplementary credentials that signal expertise in specific domains. The Certified Fraud Examiner (CFE) certification adds anti-fraud investigation capabilities that position you for forensic accounting roles. The Certified Management Accountant (CMA) credential emphasizes cost accounting and financial management, appealing to corporate finance professionals. The Certified Information Systems Auditor (CISA) combines CPA knowledge with IT audit expertise increasingly demanded as cybersecurity concerns grow.

Tax specialization remains consistently lucrative. Entry-level senior tax accountants earn $69,124 per year, escalating to $85,526-$111,523 with 5-10 years of experience. Tax CPAs working in wealth management, estate planning, or international tax structures command six-figure salaries within 5-7 years of licensure. The complexity of tax code changes ensures steady demand for specialists who master niche areas.

Audit and assurance services provide stable career paths with clear advancement trajectories. CPAs in audit roles generally help clients meet reporting requirements by providing objective and independent examination of financial statements, offering robust perspectives to audit committees. Public company audit experience positions you for controller or CFO roles in corporate America after 8-10 years in public accounting.

Advisory and consulting represent the highest-earning specialization. CPAs with transaction advisory, valuation, or restructuring expertise bill $250-$400 per hour in major markets. These roles combine accounting knowledge with business strategy, requiring strong interpersonal skills alongside technical proficiency.

The healthcare and technology sectors show particularly strong demand for CPAs. Healthcare organizations navigate complex reimbursement regulations and billing practices that require specialized accounting knowledge. Technology companies dealing with revenue recognition for SaaS models, stock-based compensation, and merger accounting seek CPAs who understand both GAAP and industry dynamics.

Common Mistakes That Delay CPA Licensure

Even candidates with strong accounting degrees stumble on predictable pitfalls that add months or years to their certification timeline. Learning from others’ mistakes prevents costly delays.

Mistake #1: Taking Too Long Between Exam Sections

The 18-month window starts when you pass your first section. Waiting six months between exams because you’re “too busy” means rushing the final sections as expiration looms. Candidates who pass all four sections typically complete them within 12-15 months, maintaining momentum rather than letting study materials go stale.

Mistake #2: Underestimating Study Requirements

CPA Exam pass rates have traditionally fluctuated between 45-60%, with FAR typically being the most challenging section for candidates. These pass rates reflect that many candidates underprepare. Plan 100-150 study hours per section minimum, with FAR requiring 150-180 hours for most people. Study schedules claiming “pass in 30 days” set unrealistic expectations that lead to failed attempts.

Mistake #3: Ignoring State-Specific Requirements

Some states like California have stricter coursework requirements including mandatory ethics and business courses, while states like New York, Ohio, and Texas allow candidates to sit for the exam with 120 credit hours but require 150 hours for licensure. Discovering your state’s specific requirements after passing all four exam sections creates frustrating delays while you complete missing credits.

Mistake #4: Choosing Discipline Sections Based on Pass Rates Alone

Yes, TCP shows the highest pass rates, but choosing it solely for that reason ignores career implications. If you plan to specialize in audit or IT security, the ISC discipline aligns better with your goals despite lower pass rates. Career trajectory should drive discipline selection more than short-term pass rate advantages.

Mistake #5: Neglecting Work Experience Documentation

Most states require 1-2 years of verified experience under CPA supervision. Starting this documentation process after passing all exam sections delays licensure by months. Begin tracking experience hours, supervisor information, and project descriptions from day one of your accounting career, even before attempting the exam.

Frequently Asked Questions

Can I become a CPA with a non-accounting bachelor’s degree?

Yes, though you’ll need to complete additional accounting coursework to meet credit requirements. Most states mandate 24-30 accounting credit hours covering specific topics like financial accounting, auditing, taxation, and business law, plus 24 business credits in areas like finance and management. Many universities offer post-baccalaureate accounting certificate programs designed for career-changers, typically requiring 30-36 credits and costing $8,000-$15,000. These programs position you for CPA exam eligibility without earning a full second bachelor’s degree. You’ll still need to reach 150 total credit hours through a master’s program or additional coursework.

How much does the entire CPA certification process cost from start to finish?

Total costs range $5,000-$15,000 depending on your pathway. CPA exam application and section fees total approximately $1,000-$1,500. Quality review courses like Becker, Wiley, or Surgent cost $2,000-$4,000. If you need 30 additional credits for the 150-hour requirement, community college courses run $5,000-$15,000 while master’s programs cost $20,000-$60,000. Many candidates reduce these costs through employer reimbursement programs covering $3,000-$8,000 in exam-related expenses. The investment pays off quickly—CPAs earn 10-15% more annually than non-certified accountants, recouping certification costs within 6-18 months of licensure.

Will the 150-hour requirement actually change to allow bachelor’s degree plus experience?

Several states have already implemented or are implementing alternative pathways. California’s new rules effective January 2027 allow bachelor’s degree plus two years of experience instead of 150 credit hours. Ohio, Virginia, and Washington have similar provisions active or pending. The AICPA and NASBA approved a competency-based experience pathway in May 2025 that states can choose to adopt, though it’s not mandatory nationwide. If you’re currently pursuing certification, check your specific state board of accountancy’s website for current requirements and pending legislation. Even if changes occur, the traditional 150-hour pathway will remain available, giving candidates flexibility to choose which route fits their situation better.

Your Strategic Path Forward

The accounting degree to CPA pipeline requires strategic planning more than raw intelligence. Understanding current pass rates, 150-hour alternatives, exam sequencing, and realistic salary expectations positions you to navigate the process efficiently rather than stumbling through based on outdated advice.

The facts remain clear: In 2024, only 13,070 candidates completed their CPA licensure from 74,165 total exam takers, demonstrating that this credential filters out those unprepared for the commitment. However, those who persist through the requirements capture substantial career advantages including 10-15% salary premiums, accelerated advancement opportunities, and access to leadership positions unavailable to non-certified accountants.

Your next steps depend on where you stand today. Current accounting students should verify their programs meet specific credit hour distributions for CPA eligibility and plan the most cost-effective path to 150 hours. Recent graduates should prioritize passing exam sections while academic knowledge remains fresh, ideally completing all four within 12-18 months. Working professionals should investigate employer support programs and emerging experience-based pathways that may eliminate the need for expensive additional coursework.

The CPA credential represents more than three letters after your name. It’s your ticket to CFO opportunities, partnership tracks, six-figure earning potential, and professional credibility that opens doors throughout your career. The question isn’t whether the certification is worth pursuing—it’s whether you’re ready to execute the strategic plan that gets you there efficiently.