From tax policy to new licensure pathways, these are the biggest issues we’re tracking in 2026.
During the 2025 legislative session, the AICPA’s State Advocacy Team tracked hundreds of bills that could have impacted the accounting profession. By partnering with stakeholders across the country, we’re able to monitor emerging issues, advocate for smart policies, and help members navigate regulatory changes. While it’s important to celebrate recent policy wins, the AICPA is closely watching how federal actions create a ripple effect at the state level.
“We’re seeing a renewed focus on deregulatory and cost-cutting efforts that could impact the profession,” said James Cox, Vice President of AICPA State Advocacy and State Society Relations. “Our priority remains promoting modern policies that balance flexibility with the rigor needed to protect the public.”
As we prepare for the 2026 legislative session, here are five key trends shaping accounting practice and regulation.
Sales tax on professional services
In 2025, several states considered bills that would tax a wide range of professional services — from advertising and information technology to cosmetic procedures and veterinarian care. If enacted, these bills would unfairly raise taxes for small businesses and consumers, lead to tax pyramiding, and harm local economies. To date, only three states tax accounting-related services, including Hawaii, New Mexico, and South Dakota.
While only a handful of the 2025 bills would have specifically taxed accounting services or software, we expect this issue to return in 2026. The AICPA will continue to advocate for sound tax policy, working closely with state CPA societies to monitor and oppose these bills.
Deregulatory proposals
CPAs help protect the public by conducting quality audits, safeguarding sensitive data, and preventing financial fraud, among many other services. That’s why recent efforts to deregulate licensed professions like accounting are concerning. In 2025, the AICPA tracked four bills related to licensing board structure and operations.
For example, the Florida Institute of CPAs (FICPA) defeated a bill that would have eliminated most licensing boards, including the Florida Board of Accountancy. If the bill had passed, Florida CPAs likely would have lost their ability to practice in other jurisdictions, and the state would have been one legislative action away from eliminating licensure.
A handful of states, concentrated in the South, anticipate similar legislative efforts in 2026. Any approaches to deregulation must be undertaken with great care to maintain public protection. The Alliance for Responsible Professional Licensing (ARPL), a coalition led by the AICPA, offers practical solutions for states considering board reform.
New licensure pathways
In May 2025, the AICPA and National Association of State Boards of Accountancy (NASBA) approved a third pathway to CPA licensure. The additional pathway requires earning a bachelor's degree in accounting, two years of professional experience, and passing the CPA Exam. This new option maintains public protection while providing added flexibility for CPA candidates — helping ensure the profession keeps pace with evolving practice and business needs.
To date, 25 states have adopted the third pathway, and 22 states plan to introduce legislation when sessions reconvene in 2026. Effective dates vary by jurisdiction, so students are encouraged to check with their board of accountancy for the latest information. In the meantime, the AICPA published student FAQs and will continue to work with stakeholders to promote adoption.
Mobility
As CPAs and accounting firms look to the future, having the freedom to practice across state lines has never been more important. In July 2025, the AICPA and NASBA updated the Uniform Accountancy Act (UAA) to modernize the profession’s mobility model. Mobility will increasingly shift to an individual-based model, where a CPA’s license is based on their individual qualifications instead of their home state’s requirements. The refreshed UAA also includes a safe harbor provision, which ensures CPAs licensed before December 21, 2024, maintain their practice privileges.
These updates will ultimately create a level of consistency for the marketplace, so CPAs can continue to practice seamlessly across state lines. To date, 25 states have adopted an individual-based model, and at least 10 states plan to introduce legislation in 2026. Encouraging uniform adoption of the UAA is one of our top priorities, as both the profession and public will benefit for years to come.
FinTech and other emerging areas
As technology reshapes how CPAs approach certain tasks, some states are considering regulatory frameworks related to AI, digital assets, and environmental, social, and governance (ESG). The AICPA actively tracks these bills, providing analysis and support on potential impacts to the profession. At the federal level, the GENIUS Act established the United States’ first comprehensive regulatory framework around stablecoin.
We expect FinTech issues to reemerge in 2026, with a focus on AI legislation that could alter audit and attest work. We also anticipate that some states will reintroduce climate disclosure legislation. Unclear definitions and patchwork standards can create compliance issues, so the AICPA will continue watching FinTech issues closely.
To learn more about state-level policy issues and advocacy resources, visit the AICPA State Advocacy page.