So, you’re looking at becoming a CPA in the Hoosier State? Honestly, it’s a bit of a maze right now. Indiana is in the middle of a massive shift in how they handle licensing, and if you’re looking at the old rules, you might be following a map that’s about to expire.
Basically, the 150-hour rule—that mountain of extra credits everyone used to complain about—is getting some serious competition. As of 2026, we are sitting right on the edge of a new era. While the traditional 150-hour path still exists, the state has opened up a new lane that values "time in the trenches" over extra classroom hours.
The Big Shift: 120 vs. 150 Hours
For years, cpa requirements in indiana were rigid. You needed 150 credit hours to even think about getting that license. Most people just got a Master’s degree because they didn't know what else to do with those extra 30 credits.
Here is the deal now. You can sit for the Uniform CPA Exam once you hit 120 credit hours.
That’s huge. It means you can start testing while you're finishing your senior year or just after graduation. But—and this is a big "but"—passing the exam doesn't make you a CPA. You still need to meet the licensure requirements, which is where things get interesting in 2026.
Indiana recently passed legislation (HEA 1143) that officially kicks in on January 1, 2027, but the transition is happening right now. For most of 2026, the Indiana Board of Accountancy is transitioning toward a "multiple pathways" model.
The Pathways to Licensure
- The Standard Path: 150 credit hours + 1 year of experience.
- The New Path (Effective Jan 2027, but relevant for 2026 planners): A bachelor’s degree (120 hours) + 2 years of experience.
- The Graduate Path: A Master’s degree in accounting or business + 1 year of experience.
If you are graduating in May 2026, you're likely aiming for that 150-hour mark unless you want to wait for the 120-hour + 2-year experience pathway to fully vest.
What Classes Do You Actually Need?
The Board doesn’t just want any credits. They want specific stuff. You can’t just take "History of Jazz" thirty times to hit your 150.
At the undergraduate level, you need 24 semester hours in accounting. This has to cover the "Big Four" of academic accounting:
- Financial Accounting
- Auditing
- Taxation
- Managerial (Cost) Accounting
On top of that, you need 24 semester hours in general business and economics. Interestingly, Indiana lets you count up to 6 hours of computer science or technology here. In a world where AI is basically doing the first-year audit work, that's actually pretty forward-thinking of them.
If you go the graduate route, the requirements are slightly different—usually 15 graduate hours in accounting is the benchmark there.
The "Experience" Hurdle
You can't just be good at taking tests. You have to prove you can do the work.
Currently, for the 150-hour crowd, you need one year (12 months) of full-time experience. If you’re eyeing that new 120-hour pathway, prepare to grind for two years.
What counts as experience?
The Board is surprisingly flexible here. You can work in:
- Public Accounting (the classic path)
- Industry (working for a private company)
- Government (State or Federal)
- Academia (teaching accounting can actually count!)
The catch is that an active CPA must verify your time. They don't have to be your direct boss, but they have to be willing to sign off on the fact that you weren't just making copies and fetching coffee for a year. You need to be performing tasks that require "accounting judgment."
The CPA Exam Itself: The 36-Month Clock
The exam is a beast. You’ve got the three core sections: AUD (Auditing), FAR (Financial Accounting and Reporting), and REG (Regulation). Then you have to pick one "Discipline" section:
- BAR (Business Analysis and Reporting)
- ISC (Information Systems and Controls)
- TCP (Tax Compliance and Planning)
In Indiana, once you pass your first section, the clock starts. You used to have 18 months to pass the other three. That was a nightmare.
Thankfully, Indiana moved to a 36-month window. This is a massive relief. It gives you three full years to clear the hurdles without losing credits you've already earned.
That Ethics Exam Everyone Forgets
Indiana doesn't have a state-specific ethics exam that you take in a testing center. Instead, most candidates take the AICPA Ethics Exam.
It’s an open-book, self-study course. Don’t let "open-book" fool you, though. You usually need a 90% or higher to pass. People often leave this for the very last minute, but it's a hard requirement before you can call yourself a CPA.
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What Most People Get Wrong
A common mistake I see is people thinking they need to be a resident of Indiana to get licensed here. Nope. Indiana has no residency requirement. You don't even have to be a U.S. citizen, though you do need a Social Security Number for the background check and application process.
Another thing? The "150-hour rule" is often called the "5th-year rule." But you don't necessarily need five years of school. If you can crank out credits in summer school or via CLEP exams (if your university accepts them), you can hit that number faster.
Actionable Next Steps
If you’re sitting there wondering where to start, stop overthinking it.
- Audit your transcript: Go to your advisor tomorrow. Make sure you have those 24 hours of accounting and 24 hours of business.
- Apply to sit at 120: If you’ve got your bachelor's degree, apply through NASBA (National Association of State Boards of Accountancy) immediately. Don't wait until you have 150 hours to start testing.
- Find a mentor: You need a licensed CPA to sign your experience forms. If you’re working in a small firm without a CPA, you might need to look for a new role or a different verification path.
- Check the 2027 transition: If you are struggling to hit 150 credits, look into the 2-year experience option. It might save you $30,000 in tuition.
Once you pass the exam and hit your hours, you’ll submit your final application to the Indiana Professional Licensing Agency (IPLA). Pay the $75 fee, wait for the email, and you're in.