As with everything, all states have their own specific policies regarding both interstate and international license reciprocity. Here we will delve into exactly what is meant by reciprocity, mobility and practice privilege as well as some of the factors that state boards take into account when they are determining their policies.

What is CPA license reciprocity?

License reciprocity means that a state or jurisdiction will recognize the license issued by another state, jurisdiction or country on condition that they meet certain prerequisites and will allow the license holder to apply for their states license without needing to take the entire Uniform CPA exam in that state. These prerequisites usually include:

Interstate CPA license reciprocity

  • They have passed all four parts of the Uniform CPA exam within an 18-month timespan, with a pass rate of at least 75% per section
  • Having a license that is considered to be substantially equivalent to that of the issuing state’s as per NASBA
  • Their education is considered to be substantially equivalent to those of the issuing state’s
  • They meet the state’s age requirements
  • They meet the state’s residency or citizenship requirements
  • They either meet the work experience requirements of the state or they have gained a certain amount of work experience within the five to ten years prior to applying for interstate license reciprocity
  • They have met the state’s ethics exam or course requirements
  • The state or jurisdiction offers substantial reciprocity to license holders from their state as well
  • The license is valid and in good standing with the issuing board

International License Reciprocity

A state recognizing the public accountancy license of another country is usually dependent on many of the points mentioned above, as well as the following stipulations:

  • That country’s board has entered into a Mutual Recognition Agreement (MRA) with NASBA’s International Qualifications Appraisal Board
  • They have passed the IQEX exam
  • That country offers similar reciprocity for license holders from the issuing state

It should be noted that for the most part, even those states that do recognize international license reciprocity will only do so for license that are issued from members of the MRA. Similarly, the IQEX exam is only available to license holders from the MRA issuing bodies. Therefore, in the table below, when the ‘international’ column is marked ‘yes’ that indicates MRA countries, while ‘partial’ will mean that only some of the bodies listed under the MRAs are accepted or that they allow for reciprocity on the basis of other requirements. The usual reason for this discrepancy is that the law needs to be updated and will eventually be. But when and sometimes if this will happen is not guaranteed, so it is best to confirm this with a state’s accountancy board beforehand, rather than depending on the hope that the law or act will be changed in time.

Does my state board recognize license reciprocity?

State

Interstate

International

Cost

Alabama

Yes

Yes

$100

Alaska

Yes

No

$500

Arizona

Yes

Yes

$100

Arkansas

Yes

Partial

$195

California

Yes

Yes

$350

CNMI

Yes

Yes

$355

Colorado

Yes

Yes

$185

Connecticut

Yes

Partial

$300

Delaware

Yes

No

$160

District of Columbia

Yes

Yes

$175

Florida

Yes

Partial

$250

Georgia

Yes

Yes

$220

Guam

Yes

No

$200

Hawaii

No

No

n/a

Idaho

Yes

Yes

$295

Illinois

Yes

Yes

$120

Indiana

Yes

Yes

$160

Iowa

Yes

Partial

$100

Kansas

Yes

Partial

$250

Kentucky

Yes

Yes

$100

Louisiana

Yes

Yes

$120

Maine

Yes

Yes

$420

Maryland

Yes

Partial

$89

Massachusetts

Partial

Yes

$499

Michigan

Yes

Yes

$300

Minnesota

Yes

Yes

$150

Mississippi

Yes

No

$210

Missouri

Yes

Yes

$165

Montana

Yes

Yes

$200

Nebraska

Yes

Partial

$285

Nevada

Yes

Yes

$240

New Hampshire

No

Partial

$435

New Jersey

Yes

Yes

$75

New Mexico

Yes

Partial

$175

New York

Yes

Yes

$427

North Carolina

Yes

Yes

$100

North Dakota

Yes

No

$140

Ohio

Yes

Yes

$180

Oklahoma

Yes

Yes

$350

Oregon

Yes

Partial

$225

Pennsylvania

Yes

Partial

$65

Puerto Rico

Yes

No

$145

Rhode Island

Yes

Yes

$375

South Carolina

Yes

No

$150

South Dakota

Yes

Partial

$150

Tennessee

Yes

Yes

$200

Texas

Yes

Yes

$100

Utah

Yes

Yes

$85

Vermont

Yes

Yes

$100

Virgin Islands

Yes

Yes

$150

Virginia

Yes

Yes

$75

Washington

Yes

Yes

$150

West Virginia

Yes

Partial

$200

Wisconsin

Yes

Yes

$118

Wyoming

Yes

Yes

$110

How to apply for a reciprocal CPA license

The process of applying for reciprocal licensure usually flows as follows:

  • Provide proof of passing either the Uniform CPA exam or the IQEX exam
  • Have the registrars all of the universities and colleges you attended submit official copies of your transcripts directly to the Board (or NASBA, in some cases)
  • Provide a 2 x 2” passport style photograph of your head and shoulders to the board
  • Provide an official copy of a form of identification to the Board
  • Submit a license transferal documentation to the board to provide that your license is valid and in good standing with the issuing state
  • Submit proof of meeting the ethics exam or course requirements where applicable
  • Submit three testimonies from non-family members from different households stating that you are of good moral character
  • Submit proof of meeting the state’s experience requirements
  • Provide official copies of board-recognized transcript evaluations from a board recognized evaluation service where applicable
  • Submit the application form
  • Pay all associated fees

How much does a reciprocal CPA license cost?

As always, the cost varies from state to state. Some states charge an application fee and a reciprocal license fee, while others just charge the regular license fee. Still others also include a NASBA evaluation fee on top of that. In the above table, we tried to include the full cost, by taking into account all of the known fees. As you can see, the fees vary greatly. As they are subject to change, it I best to verify wit the board before submitting any payments. In rare cases, boards have also been known to lower their licensing fee.

When you should apply for a reciprocal license

Generally, you will be required to apply for a reciprocal license when that state becomes your primary place of business and/or residence. Once you have acquired a reciprocal license, you will need to renew it according to the stipulations of that state’s regular CPA license holder. This includes fulfilling that state’s CPE and ethics requirements, as well as paying the renewal fee in a timely manner. You will also need to ensure that your original CPA license remains valid, or you will not be able to retain your reciprocal license either.

Practice privilege

This is an alternative to license reciprocity that works similarly to license reciprocity but is much simpler. This is because you will be allowed to practice in the state without need to submit all of the documentation listed above, and generally without paying a fee. You may need to apply for a permit in some cases, but that is not a guarantee. In order to qualify for practice privilege, you will usually need to meet the following criteria:

  • Your CPA license or international public accountancy license is substantially equivalent to that of the state board’s
  • Your license is valid and in good standing with the issuing state board
  • Your primary place of business or the firm which you work for is based in the issuing state’s

Sometimes you may only be able to apply for a short-term permit or per-case permit. You may also need to apply in advance and pay a fee for this right, depending on the state. As always, it is best to verify the state’s position on practice privilege before beginning to work there.