The 150-Hour Rule Is Changing Fast: 2025-2026 State-by-State Status
The 150-hour rule was effectively universal for two decades. Now multiple states are creating 120-hour-plus-experience alternatives. Here's where things stand in 2026 — and what's likely next.
The 150-credit-hour rule for CPA licensure was effectively universal in the United States for two decades. Between 2024 and 2026, that consensus has cracked. Multiple states have now created alternative paths, and more are in active legislative consideration. Here's the 2026 status and the trajectory.
Authoritative source: NASBA jurisdiction tracker; individual state board websites linked below. Always verify with the state board before relying on any specific rule — this area is changing rapidly.
Why the rule existed
The 150-credit-hour rule was adopted in waves between the 1990s and early 2010s. The argument: a four-year accounting degree (120 hours) wasn't enough to cover the modern complexity of GAAP, audit, and tax. The additional 30 hours typically meant a fifth year of study or a Master of Accountancy.
Why it's being challenged
Three connected pressures:
- The candidate pipeline is shrinking. The number of US candidates sitting for the CPA exam has declined every year since the mid-2010s, even as demand for CPA-level work has stayed flat or grown.
- The cost and time barrier is non-trivial. A fifth year of school typically costs $20,000-$60,000 and adds a year of foregone earnings.
- No clear evidence the rule improves outcomes. Studies comparing pass rates and career outcomes across the original adoption window did not show clear quality improvements from 150 over 120 + experience.
The new alternative-path model
States adopting alternatives generally use this structure:
| Path | Education | Experience |
|---|---|---|
| Traditional | 150 credit hours | 1 year |
| Alternative | 120 credit hours (bachelor's) | 2 years |
The exam itself is unchanged. The trade is "extra year of school" for "extra year of supervised experience."
State-by-state status as of April 2026
This list is current as of the publication date and changes quarterly. Verify with each state board.
| State | Status | Notes |
|---|---|---|
| Minnesota | Alternative path enacted | Among the earliest states to adopt; 120 hrs + 2 years experience |
| South Carolina | Alternative path enacted | Effective 2024-2025 |
| Iowa | Alternative path enacted | One of the early movers |
| Virginia | Alternative path enacted | Effective in recent rule update |
| Ohio | Alternative path enacted | Implementation timeline ongoing |
| Several other states | Active legislation or board consideration | The list is growing — check NASBA's tracker |
| California, New York, Texas, Washington | 150 hours retained | No alternative path enacted as of early 2026 |
What this means if you're mid-process
- If your state has adopted an alternative path: Read the rule carefully. Most boards allow you to switch paths only at specific milestones (e.g. before sitting for the first exam section).
- If your state is considering it: Don't bet on legislation that hasn't passed. Plan around current rules; pivot if and when changes go effective.
- If you're early in the path: The most flexible move is staying on the 150-hour track. It works in every state. Switching to the alternative locks you into one state's specific implementation.
Mobility implications
Mobility — the ability for a CPA licensed in one state to work in another — depends on substantial equivalence. As alternative-path states proliferate, NASBA and the AICPA are working out how mobility should function when education paths differ. As of 2026 the position is generally that 120 + 2 years experience is substantially equivalent to 150 + 1 year experience, but specific reciprocity rules vary by state.
What's likely next
The 2024-2026 wave is unlikely to stop. NASBA and the AICPA have expressed openness to broader alternative-path adoption. Expect more states to follow through 2026-2028, with the holdout states being the largest (CA, NY, TX) — they have the most to lose from alignment risk and the least pressure to recruit candidates.
If your state is mid-process on legislation, the AICPA's news feed and your state society's newsletter are the fastest authoritative updates.
Frequently asked questions
Which states have dropped the 150-hour rule for CPAs?
As of 2026, several states have created alternative paths allowing 120 credit hours plus 2 years of experience as an alternative to the traditional 150-hour-plus-1-year-experience path. Minnesota, South Carolina, Iowa, Virginia, and Ohio were among the early movers. The list is changing quarter by quarter — verify with your state board.
Why is the 150-hour rule being changed?
The CPA candidate pipeline has declined for nearly a decade. Critics of the 150-hour rule argue it adds cost and time without proportional educational value, deterring candidates from entering the profession. Supporters argue it ensures depth. The 2024-2026 wave of state-level changes reflects an attempt to broaden the pipeline without lowering the substantive standard.
If my state changes its rules while I'm in the middle of getting certified, what happens?
Most state boards include grandfather provisions and transition rules when they change requirements. The general pattern is: candidates already on a 150-hour path can complete that path, and the alternative path becomes available to new applicants. Specifics vary by state — read the actual legislation or board rules carefully.