CPA Taxation and Regulation (REG) Pass Rate, Format & Study Guide

Taxation and Regulation (REG) is one of the three Core sections of the Uniform CPA Examination, developed by the AICPA and administered by NASBA for the state Boards of Accountancy. It tests the knowledge and skills candidates need for U.S. ethics and professional responsibilities in tax practice, U.S. business law, and U.S. federal tax compliance for individuals and entities — and it is a four-hour computer-based section with two multiple-choice testlets and three task-based simulation testlets.

Federal tax compliance is one of the most common services CPAs provide, and REG is where candidates show they can prepare and review returns, apply the Internal Revenue Code and Treasury Regulations, and meet the ethical rules (Circular 230 and the rules for tax return preparers) that govern tax practice. Passing all four sections is a requirement of licensure in the US jurisdictions that grant the CPA licence, so a passed REG section is a direct step toward practising as a CPA, alongside the education and experience rules your own board sets.

REG is aimed at accounting graduates and candidates in public accounting, tax, corporate accounting or finance who are working toward CPA licensure. Eligibility is set by each state board, so check your board's rules before you apply.

The AICPA publishes CPA Exam pass rates for every section. For REG the 2025 cumulative pass rate was 63.12%, and in 2026 the rate was 66.65% in Q1 and 66.87% in Q2 (66.78% cumulative to date) — REG has the highest pass rate of the three Core sections, with roughly two in three candidates passing a given attempt.

NASBA states that under continuous testing you can retake a failed section shortly after receiving your score; the only limits are the time it takes to receive a score, re-register, obtain a new Notice to Schedule and find an available testing date, and NASBA does not state a maximum number of attempts per section. Your jurisdiction sets the practical limits instead — how long it keeps credit for sections you have passed and any cap on attempts — so confirm them with your Board of Accountancy before you plan retakes.

Scores are reported on a scale from 0 to 99 and the passing score is 75 — a scaled score, not a percentage of questions answered correctly. For REG the AICPA states the weighted combination of scaled scores is 50% multiple-choice questions and 50% task-based simulations. The section has five testlets: two multiple-choice testlets (36 questions each, 72 in total) and three testlets of task-based simulations (2, 3 and 3 simulations, 8 in total). The blueprint also gives the skill mix: remembering and understanding 25–35%, application 35–45% and analysis 25–35%.

REG is four hours long and has five testlets. The first two contain multiple-choice questions — 36 in each, 72 in total — and the next three contain task-based simulations, 8 in total (2, 3 and 3 per testlet). The AICPA's blueprint states the weighted combination of scaled scores is 50% multiple-choice and 50% task-based simulations, and scores are reported from 0 to 99 with 75 required to pass. The blueprint's skill allocation is remembering and understanding 25–35%, application 35–45% and analysis 25–35%.

The AICPA 2026 blueprint organises REG into five content areas and publishes each as a range: Area I, Ethics, Professional Responsibilities and Federal Tax Procedures, 10–20% (Circular 230 and preparer rules, licensing and disciplinary systems, audits and appeals, penalties, legal duties); Area II, Business Law, 15–25% (government regulation of business, employment taxes and worker classification, bankruptcy, the FCPA and the Affordable Care Act); Area III, Federal Taxation of Property Transactions, 5–15%; Area IV, Federal Taxation of Individuals, 22–32%; and Area V, Federal Taxation of Entities (including tax preparation), 23–33%.

Eligibility is not set by the AICPA or NASBA. Each jurisdiction's Board of Accountancy determines the education, experience and residency requirements, the application steps and the timeframe in which you must finish licensure after passing. After your board approves you, NASBA issues a Notice to Schedule, which you use to book your section at a testing center at least five days ahead.

The CPA Exam's total cost is the sum of application and administration fees plus an examination fee for each section, and the amounts are set per jurisdiction — the AICPA's FAQ directs candidates to their specific Board of Accountancy, and NASBA notes that the cost varies for each jurisdiction. Candidates testing in Guam or at international testing centers pay additional administration fees. Because you pay per section attempt, each retake of REG carries its own examination fee.

Passing REG earns conditional credit rather than a licence on its own. How long your credit stays valid is decided by your state Board of Accountancy, and some states require you to complete licensure eligibility requirements and the application within a specific timeframe after passing, so check your board's rules before scheduling the remaining sections.

REG has the highest pass rate of the Core sections, but it covers a lot of ground: federal taxation of individuals (22–32%) and of entities (23–33%) are the two largest areas, followed by business law (15–25%) and ethics and federal tax procedures (10–20%). Work through the five blueprint areas in order of weight, and practise task-based simulations early because they carry half of the section score; the REG blueprint includes applied research, where you review and use excerpts of source materials such as the Internal Revenue Code and Treasury Regulations to complete tasks. Keep the last weeks for timed, full-length practice so the four-hour pace feels familiar, and check the AICPA's rule on when tax-law changes become testable (the quarter beginning six months after the effective date) before your test window.

The AICPA updates the CPA Exam blueprints periodically, and tax-law changes become testable in the calendar quarter beginning six months after the change's effective or enactment date. The 2026 blueprints took effect in January 2026, and the AICPA has published the 2027 blueprints, effective January 1, 2027, so confirm which version applies to your testing window before you study.