You have your 120 credits and feel ready for the CPA Exam. Then bam—you hit a wall trying to figure out Tennessee's rules. The #1 trap isn't the exam content; it’s the subtle but critical difference between the requirements to sit for the exam versus the requirements to get licensed. Many candidates stumble by misinterpreting this sequence, costing them time and money.
To become a CPA in Tennessee for 2026, you must pass all four CPA Exam sections (which you can sit for with 120 semester hours), complete a total of 150 semester hours for licensure, pass the AICPA Ethics Exam, and document one year (2,000 hours) of qualifying accounting experience.
The CPA exam has a <50% pass rate.
VoraPrep's AI finds your weak spots before the exam does — adaptive practice that actually moves your score.
Key facts
- Passing score: 75 (on a 0-99 scale) for each exam section.
- Exam sections: FAR, AUD, REG, and one discipline (BAR, ISC, or TCP).
- Total study hours: 300-400 hours recommended per section (1,200-1,600 total).
- Average pass rate: Varies, but typically 49-55% nationally per section.
- Official body: Tennessee State Board of Accountancy, administered by NASBA and AICPA.
- Salary range: Entry-level CPAs in Tennessee typically earn $75,000-$90,000, growing to $100,000-$150,000+ with experience.
What are the Tennessee CPA Education Requirements?
The education requirement is a two-stage process, and this is where many candidates get confused. Tennessee is a "120 to sit, 150 to license" state. Understanding this distinction is the key to planning your timeline correctly.
Requirement #1: To Sit for the CPA Exam (120 Hours) You can apply for and sit for the Uniform CPA Examination in Tennessee once you have earned:- A bachelor's degree from a regionally accredited college or university.
- A total of 120 semester hours.
- Specific Coursework: Within those 120 hours, you must have at least:
- 24 semester hours in upper-division accounting courses. These must be beyond the introductory "Principles of Accounting" level.
- 24 semester hours in general business courses. These can include economics, finance, business law, management, etc.
Decision Tree: Are You Eligible to Sit for the Exam?
Let's walk through a common scenario.
Scenario: You just graduated with a Bachelor of Science in Accounting, totaling 125 semester hours. Step 1: Total Hours Check (to Sit)- Condition: Do you have at least 120 total semester hours?
- Threshold: Yes, 125 > 120.
- Action: You meet the minimum hour requirement to sit. Proceed to Step 2.
- Condition: Do you have 24 semester hours of upper-division accounting courses?
- Example Transcript Review:
- Intro to Financial Accounting (3 credits) - DOES NOT COUNT
- Intermediate Accounting I & II (6 credits) - COUNTS
- Federal Taxation I (3 credits) - COUNTS
- Auditing (3 credits) - COUNTS
- Cost Accounting (3 credits) - COUNTS
- Accounting Information Systems (3 credits) - COUNTS
- Governmental/NFP Accounting (3 credits) - COUNTS
- Advanced Financial Reporting (3 credits) - COUNTS
- Calculation: 6+3+3+3+3+3+3 = 27 qualifying credits.
- Threshold: Yes, 27 > 24.
- Action: Proceed to Step 3.
- Condition: Do you have 24 semester hours of general business courses?
- Example Transcript Review:
- Microeconomics (3 credits) - COUNTS
- Corporate Finance (3 credits) - COUNTS
- Business Law I (3 credits) - COUNTS
- Principles of Management (3 credits) - COUNTS
- Marketing Principles (3 credits) - COUNTS
- Business Statistics (3 credits) - COUNTS
- Information Systems (3 credits) - COUNTS
- Business Communications (3 credits) - COUNTS
- Calculation: Total 24 qualifying business credits.
- Threshold: Yes, 24 = 24.
- Action: You are eligible to apply to sit for the CPA Exam. Remember, you will still need to complete another 25 credit hours (to get from 125 to 150) before you can be licensed.
If you're mapping out your courses, VoraPrep's adaptive learning engine can help you identify knowledge gaps early, so you can focus your remaining coursework on areas tested heavily on the exam. Try VoraPrep's free CPA practice questions to see where you stand.
What are the Tennessee CPA Exam Requirements?
Passing the exam itself involves two key components: the four-part Uniform CPA Examination and a separate ethics exam.
The Uniform CPA Examination
This is the core of your testing journey. You must pass all four sections within a rolling 18-month window, which begins the day you pass your first section.
- Core Sections (must pass all three):
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Taxation and Regulation (REG)
- Discipline Section (choose one):
- Business Analysis and Reporting (BAR)
- Information Systems and Controls (ISC)
- Tax Compliance and Planning (TCP)
Your study plan must be strategic. With 300-400 hours of study recommended per section, you need an efficient approach. Don't just read a textbook; engage with thousands of multiple-choice questions and task-based simulations to build the judgment skills the exam demands.
The AICPA Ethics Exam
This is the step nearly every candidate forgets to plan for. After passing the Uniform CPA Exam, but before you can be licensed, you must pass the AICPA's Professional Ethics Exam.
- Format: This is an open-book, self-study exam.
- Content: It covers the AICPA Code of Professional Conduct and accounting ethics.
- Passing Score: You must score a 90% or higher.
- Timing: You can order the exam from the AICPA anytime, but most candidates tackle it after finishing the four main exam sections while waiting for their experience to be finalized. Do not neglect this step—your license application will be rejected without it.
What are the Tennessee CPA Experience Requirements?
Passing the exams is a huge step, but you're not a CPA until you've proven you can apply that knowledge in a professional setting.
For licensure, you must complete one year of qualifying experience, which the Board defines as 2,000 hours of full-time or equivalent part-time work. This experience must be obtained within a continuous period of no less than one year and no more than three years.
What Kind of Work Qualifies? Your work must involve skills in accounting, attest, tax, or consulting. The key is that you are exercising professional judgment, not just performing clerical tasks. This can be in:- Public Accounting: Audits, reviews, compilations, tax preparation, M&A advisory.
- Industry: Corporate accounting, financial reporting, internal audit, tax compliance.
- Government: Governmental auditing (e.g., state comptroller's office), financial management.
- Academia: Teaching upper-division accounting courses may qualify, subject to Board approval.
How Do I Apply and What are the Fees?
The application process is managed by NASBA, while final licensure is handled by the Tennessee State Board of Accountancy.
- Initial Application (to NASBA): You'll apply through the NASBA CPA Portal. This is where you submit your official transcripts for evaluation against the 120-hour "to sit" requirement.
- Receive Your Notice to Schedule (NTS): Once NASBA approves your education, you'll receive an NTS. This is your ticket to schedule your exam sections. Your NTS is valid for six months. If it expires, you forfeit your exam fees.
- Schedule with Prometric: Use your NTS to book your exam dates at a Prometric testing center.
- Application for Licensure (to TN Board): After passing all four exam sections, passing the Ethics Exam, and completing your 150 credit hours and 2,000 experience hours, you will apply directly to the Tennessee State Board of Accountancy for your license. This involves submitting your Experience Verification Form and undergoing a background check.
| Item | Approximate Cost (USD) |
|---|---|
| Initial Application (NASBA) | $175 |
| FAR Exam Section | $238 |
| AUD Exam Section | $238 |
| REG Exam Section | $238 |
| Discipline Exam Section | $238 |
| AICPA Ethics Exam | $200 |
| Initial License Application (TN Board) | $150 |
| Total Estimated Initial Costs | $1,477 |
| Biennial Renewal Fee | $150 |
| Estimated Annual CPE Costs | $500-$1,500 |
These figures don't include a review course. While VoraPrep offers a comprehensive platform for an affordable $29/month or $249/year, be sure to factor study costs into your overall budget.
What if I'm a CPA in Another State? (Reciprocity)
If you hold an active CPA license in another state, Tennessee allows for licensure by reciprocity if your original state's requirements are substantially equivalent to Tennessee's. Since most states have adopted the 150-hour rule, this is usually a straightforward process for recently licensed CPAs.
You will typically need to submit an application to the Tennessee Board, provide verification of your license (usually via CPAverify.org), and undergo a background check.
For international candidates, you must have your credentials evaluated by NASBA International Evaluation Services (NIES) before you can apply to sit for the Uniform CPA Examination.
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