The Balance Sheet of Barriers Part 1

Accountants are often thought of as the silent backbone of the economy. Most people would do almost anything than deal with their taxes, but accountants are paid to do exactly that.  Certified Public Accountants (CPAs) help uphold accuracy, transparency, and trust across financial markets.  Unlike some occupations, CPAs are licensed in every state. However, even though the profession is universally licensed, the specific requirements to obtain and maintain a license can vary considerably across jurisdictions. 

In this first blog post, I compare CPA licensing requirements across states, focusing on the differences in financial barriers such as initial licensing fees and renewal fees. Accountants were selected for this analysis because they represent a profession that is uniformly licensed yet inconsistently regulated across jurisdictions.  This analysis demonstrates how occupational licensing data can be used to evaluate potential barriers to entry within professional labor markets. 

In December 2025, the Knee Center released its Occupational Licensing Snapshot1, which provides an annual overview of licensing requirements for many professions across the United States. CPAs are included in this snapshot alongside occupations such as occupational therapists, acupuncturists, and certified nurse midwives. All data used in the snapshot are drawn directly from state statutes, administrative codes, and state boards of accountancy websites. When necessary, licensing boards are contacted directly by phone or email to verify or clarify requirements. 

Table 1 presents summary statistics for key CPA licensure requirements across U.S. states and Washington, D.C. The table includes 51 observations, reflecting that Washington, D.C. maintains its own CPA licensure process in addition to the 50 states. Initial licensing fees vary considerably, with an average cost of $1,602.19, a standard deviation of $243.97, and fees ranging from a minimum of $1,119.20 to a maximum of $2,107.56. Notably, these figures do not include the cost of the AICPA ethics exam, which will further increase the total cost of licensure in some states. 

Figure 1 illustrates the significant variation in initial licensing fees across jurisdictions, with some states listing fees nearly double those of others. These upfront fees represent a significant barrier to entry, particularly for early-career accountants with limited financial resources. The cost of CPA licensure does not end once a license is obtained. States also impose recurring renewal fees, which create ongoing financial obligations for licensed professionals. 

Biennial renewal fees are substantially lower than initial licensing costs but still display wide variation. Figure 2 highlights this variation, showing that some states charge relatively low renewal fees while others require much higher biennial payments. On average, CPAs pay $195.64 every two years to keep their licenses active, with renewal fees ranging from as little as $10.00 to as much as $1,130.00. The figure emphasizes the lack of uniformity in renewal requirements across jurisdictions and portrays how ongoing licensing costs differ substantially depending on location. 

Although CPAs are licensed in every U.S. state, the financial costs associated with entering and maintaining the profession vary substantially across jurisdictions. Initial licensing fees alone differ by nearly $1,000 between states; and biennial renewal fees range from minimal charges to more than $1,000. These differences illustrate how occupational licensing policies can create uneven financial barriers for professionals seeking to enter or remain in the field. 

Because CPA licensure is regulated at the state level, these variations may influence where accountants choose to become licensed or practice in their field. Licensing requirements are often intended to protect consumers and ensure professional competence, but large differences in costs across jurisdictions raise questions about whether some fees represent necessary safeguards or unnecessary barriers. Next week, we’ll be looking at the educational requirements for the CPA exams, the different pathways a CPA can take to qualify for licensure, and the exams themselves. 

CFO Dive. (2025, April 14). Tracking CPA licensure paths: Removing the 150-hour-rule hurdle. Updated February 13, 2026.  https://www.cfodive.com/news/broadening-cpa-licensure-paths-marching-beyond-150-hour-rule-accounting-talent-shortage/745282/ 

Harvard Law School Center on the Legal Profession. (2024, January/February). Accounting for licensure.  https://clp.law.harvard.edu/knowledge-hub/magazine/issues/rethinking-licensure/accounting-for-licensure/ 

Norris, Conor, Kelley, Ethan, and Carneal, Troy. (2025). “KRRC Annual Licensing Database Snapshot: 2025.” Knee Regulatory Research Center.