Alabama CPA Requirements 2026: The New Bachelor's + Experience Pathway Explained

Alabama quietly became one of the most accessible states in the country to become a CPA. Beginning in 2026, candidates can qualify for licensure with a bachelor's degree in accounting plus two years of professional experience — without the extra 30 credit hours (the "150-hour rule") that has defined CPA licensure for a generation.

If you're an accounting student, a career changer, or a firm trying to recruit in a shrinking pipeline, this changes the math. Here is the complete picture.

The three pathways to an Alabama CPA license

Under the updated Alabama licensure framework, you can qualify through any one of these routes:

1. Master's pathway — a graduate degree with an accounting concentration, plus one year of qualifying experience.
2. 150-hour pathway — a bachelor's degree plus 150 total semester hours with the required accounting coursework, plus one year of qualifying experience. This is the traditional route and remains fully valid.
3. New for 2026: Bachelor's pathway — a bachelor's degree with an accounting concentration, plus two years of qualifying experience.

All three pathways still require passing the Uniform CPA Examination and meeting the Alabama State Board of Public Accountancy's other requirements (age, background, and ethics requirements below).

The third pathway is the headline. A candidate can now graduate with a standard four-year accounting degree, go straight to work, and be fully licensed after two years — skipping a fifth year of tuition entirely.

Why Alabama made this change

The accounting pipeline is shrinking nationally. CPA exam candidates fell from roughly 101,000 in 2010 to about 67,000 in 2022, while a large share of currently licensed CPAs are at or near retirement age. The 150-hour rule — effectively a fifth year of college with no degree attached — is widely cited as a major deterrent, particularly for first-generation and lower-income students.

Alabama joined a growing group of states responding by restoring an experience-based route. For candidates, the practical effect is simple: a year of paid work now substitutes for a year of paid tuition.

Requirements in detail

Education

For the bachelor's pathway, you need a bachelor's degree from an accredited institution with a concentration in accounting — generally including upper-level coursework in financial accounting, auditing, taxation, and management accounting, plus supporting business courses. The Board evaluates transcripts, so candidates with non-traditional coursework should request an evaluation before sitting for the exam.

The CPA exam

Alabama uses the standard Uniform CPA Examination (CPA Evolution format): three core sections — Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG) — plus one discipline section of your choice (Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning).

You can sit for the exam in Alabama once you meet the education requirement. Sections may be taken in any order, and you must pass all four within the rolling window set by the Board (most states now allow 30 months from your first passed section — verify your exact window with the Board when you apply).

Experience

Qualifying experience means full-time employment in accounting — public accounting, industry, government, or academia all generally count — verified by a licensed CPA. Under the new pathway, two years are required with a bachelor's degree alone; one year suffices with a master's degree or 150 credit hours.

Ethics and other requirements

Alabama requires candidates to be of good moral character, and U.S. citizenship or legal residency is required for licensure. Check the Board's current application packet for the ethics examination requirement and fees in effect when you apply.

Timeline: how fast can you become an Alabama CPA now?

A realistic schedule on the new pathway:

Milestone	Timing
Graduate with BS in Accounting	Year 0
Begin full-time accounting job	Year 0
Pass all four exam sections	Year 0–1.5
Complete two years verified experience	Year 2
Licensed CPA	~2 years after graduation

Compare that to the traditional route, which typically meant a fifth year of school before the clock even started. For many candidates, the new pathway is both a year faster and roughly a year of tuition cheaper.

What if you're already partway through the old path?

• Already have 150 hours? Nothing changes for you — one year of experience and you're eligible.
• In a master's program? The master's pathway still requires only one year of experience, so finishing may still be worthwhile, especially if firms you're targeting pay a master's premium.
• Licensed in another state? Alabama offers reciprocity for CPAs licensed in states with substantially equivalent requirements; apply to the Board for a reciprocal license rather than re-qualifying.

Frequently asked questions

Does the new pathway make an Alabama license "weaker" in other states? Interstate practice runs on substantial-equivalency and mobility rules, and states are actively updating them as more adopt experience-based pathways. If you plan to relocate soon after licensure, check the mobility rules of your destination state before choosing a pathway.

Do I still need 150 hours to sit for the exam? No — the exam eligibility and licensure requirements are separate, and under the new framework a qualifying bachelor's degree makes you exam-eligible. Confirm current exam application requirements with the Board when you apply, as application details change more often than statutes.

Where do I apply? The Alabama State Board of Public Accountancy handles exam applications, licensure, and reciprocity. Their office is in Montgomery, and applications are available through the Board's website.

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This guide is educational, not legal advice. Requirements are set by the Alabama State Board of Public Accountancy and can change — always verify against the Board's current rules before making education or career decisions.