US CPA REG (Regulation) — Complete Guide 2026
US CPA REG exam complete guide: syllabus breakdown (US federal tax and business law), exam format, hardest topics, pass rates, and study strategy for Indian CPA candidates.
Taxation and Regulation (REG) is a Core section of the US CPA exam covering federal tax, business law and professional responsibilities. According to the AICPA blueprint effective January 2026, it lasts four hours and contains 72 multiple-choice questions and 8 task-based simulations. The AICPA reports a cumulative pass rate of 66.78 percent for the first two quarters of 2026, which is well above FAR and AUD. This guide covers the structure, the five content areas, how REG fits with the rest of the exam and what the AICPA says has changed in 2026. For the other Core sections see our AUD guide and FAR guide, and for the broader route see our how to become a US CPA.
At a glance
| Item | What the official sources say |
|---|---|
| Section type | Core: every candidate must pass it |
| Time | Four hours |
| Multiple-choice questions | 72, in two testlets of 36 |
| Task-based simulations | 8, in three testlets of 2, 3 and 3 |
| Score weighting | 50 percent multiple-choice, 50 percent simulations |
| Ethics, Professional Responsibilities and Federal Tax Procedures | 10 to 20 percent |
| Business Law | 15 to 25 percent |
| Federal Taxation of Property Transactions | 5 to 15 percent |
| Federal Taxation of Individuals | 22 to 32 percent |
| Federal Taxation of Entities (including tax preparation) | 23 to 33 percent |
| Pass rate (AICPA) | 63.12 percent for 2025; 66.78 percent for the first two quarters of 2026 |
What REG covers
REG has five areas. Federal taxation of individuals, at 22 to 32 percent, and federal taxation of entities, at 23 to 33 percent, carry the most weight and together make up roughly half the section. Business law, at 15 to 25 percent, and ethics, professional responsibilities and federal tax procedures, at 10 to 20 percent, are the other large areas. Federal taxation of property transactions is the smallest, at 5 to 15 percent. The blueprint states weighting ranges, so your exam will not necessarily match the midpoints.
Exam structure
REG has five testlets. Two are multiple choice with 36 questions each, which makes 72 in total, and three are simulations with 2, 3 and 3 tasks, which makes 8. The multiple-choice and simulation scores each count for half of the section result. That balance means a candidate who is strong on research-style simulations can recover from a weaker multiple-choice testlet.
Sources
The blueprint lists the references REG may draw on, including the Internal Revenue Code, Circular 230, the Uniform Commercial Code and the Uniform Accountancy Act. The blueprint also says tax questions may use excerpts of source material such as the Internal Revenue Code and Treasury Regulations.
Tax law changes in 2026
The AICPA says provisions of the 2025 federal tax legislation (H.R. 1) with effective dates in 2024 and 2025 become eligible for testing in REG and TCP from 1 July 2026. We found this on one AICPA article and have not read the AICPA's separate download on how the legislation is tested, so check that document before you rely on a specific rule. The AICPA says it built supporting assumptions into the 2026 blueprint revisions.
How hard is REG?
The AICPA reports pass rates of 63.12 percent for 2025 and 66.78 percent for the first two quarters of 2026. In 2025 the quarterly figures ran from 60.73 percent in Q4 to 66.05 percent in Q3. REG is therefore one of the more passed sections, but a pass rate is an average across all candidates, so use it for context only. Our CPA pass rates guide sets all six sections side by side.
REG and the Discipline sections
REG shares tax content with the Discipline section TCP. A candidate who plans to choose TCP will find overlap in individual and entity taxation. Our TCP guide sets out the Discipline section, and the AICPA does not say which order to take them in, so plan around your own study time.
Scoring and results
Scores run from 0 to 99 and the pass mark is 75. Our CPA exam scoring guide explains the release schedule, and the retake and credit window guide covers how long a passed REG score stays valid with your state board.
Frequently asked questions
How many questions are on the CPA REG exam?
72 multiple-choice questions and 8 task-based simulations over four hours.
What does REG cover?
Ethics and professional responsibilities, federal tax procedures, business law, and federal taxation of property transactions, individuals and entities.
What is the REG pass rate?
The AICPA page reports 63.12 percent for 2025 and 66.78 percent for the first two quarters of 2026.
Is REG a Core section?
Yes. Every candidate must pass it.
Does REG test the 2025 tax law changes?
The AICPA says provisions with 2024 and 2025 effective dates are eligible for testing from 1 July 2026. Check the AICPA's testing guidance for details.
Next steps
Read the CPA syllabus guide and the registration and Notice to Schedule guide before you book. If you are comparing study options, see our Learnsignal pricing page and the CPA study materials comparison.
Source: AICPA and CIMA Uniform CPA Examination Blueprints effective January 2026, the AICPA exam structure pages and the NASBA CPA Exam Candidate Guide (September 2026), and the AICPA article 'The new CPA Exam, two years in' (July 2026). AICPA published pass rates are quarterly and cumulative, and the AICPA page we used is dated 15 July 2026 and includes the first two quarters of 2026 only. Checked October 2026.
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