Accredited Investor Requirements: Income and Net Worth

TL;DR: The thresholds for accredited investor status were set in the 1980s and 2010, according to the U.S. Government Accountability Office (GAO). Today you qualify with income over $200,000 in each of the last two years ($300,000 joint), a net worth over $1 million excluding your home, or a Series 7, 65 or 82 license.

If you crossed $200,000 for the first time this year, you probably don't qualify yet. The income test looks back two years, and that catches a lot of newly promoted professionals off guard. The net worth test works differently, and so does the license route, so it's worth knowing which door you're actually standing at before a sponsor asks you to sign anything.

What are the accredited investor requirements?

There are two money tests and one license route, and you only need to pass one. The income test asks for individual income over $200,000 in each of the two most recent years, or joint income over $300,000 with a spouse or spousal equivalent, plus a reasonable expectation of the same level in the current year. That's the Investor.gov description of the rule. The net worth test asks for more than $1 million, not counting your primary residence.

The U.S. GAO describes the same two dollar lines as the SEC's standard. Here is how the three paths compare.

Path	What you need	Source
Income test	Over $200,000 in each of the last two years ($300,000 joint with a spouse or spousal equivalent), and the same expected this year	Investor.gov
Net worth test	Over $1 million, excluding your primary residence	U.S. GAO
License holder	Series 7, Series 65 or Series 82	Investor.gov

Notice what the table leaves out. Nothing in it says an issuer has to take your word for it. Some offerings accept a signed checkbox, and others ask for tax returns, bank statements or a letter from a lawyer or CPA. Our guide to accredited investor verification under Rule 506(c) walks through what each method asks you to hand over. The difference between the two exemptions is covered in 506(b) vs 506(c).

Does one good year of income qualify you?

No. The income test is built on a track record, not a single paycheck. You need to be over the line in each of the two most recent years, and the issuer also expects you to reach it again this year.

Say you took a new job in March and your pay jumped well past the line. Your income for the prior two years still counts, and those years were lower. That gap is the whole problem. Next year or the year after, the picture may change, but until it does, the net worth test might be the cleaner route if you've built savings.

The joint figure applies to a spouse or spousal equivalent, and the same two-year look-back applies to the household.

How is net worth counted?

Net worth is measured at the moment you buy, and it can be yours alone or shared with a spouse or spousal equivalent. The Investor.gov bulletin says the figure must exceed $1 million "at the time of the sale of the securities." Your home is excluded, so a paid-off house adds nothing toward the line.

There's a catch if you recently borrowed against your home. According to the same Investor.gov bulletin, an increase in debt secured by your primary residence in the 60 days before the purchase counts as a liability, unless the loan was taken to buy the home. Think of it as a scale that gets weighed on purchase day, with the issuer checking that nobody leaned on it over the last two months.

Which licenses qualify you without the income or net worth?

Three FINRA licenses do. FINRA is the Financial Industry Regulatory Authority, the self-regulator for U.S. broker-dealers. The Investor.gov bulletin lists the General Securities Representative license (Series 7), the Private Securities Offering Representative license (Series 82) and the Licensed Investment Adviser Representative license (Series 65).

The bulletin adds that whether a license is in good standing depends on the designation, so holders should check FINRA and state rules. A lapsed license won't carry you. Entities can qualify too. Per the SEC, that depends on the structure of the entity or its assets.

Does a CFP certification qualify you?

Not on the list the SEC's investor-education office publishes. A Certified Financial Planner (CFP) certification isn't among the licenses the bulletin names, which are Series 7, 65 and 82. If you hold a CFP and don't meet a money test, you shouldn't tell an issuer you're accredited because of the certificate.

The definition does get revisited. The U.S. GAO notes that beginning in 2014 the SEC must review it every four years to decide whether it should be adjusted. Before you rely on any newer route, check the SEC's own accredited investor page for the current text. For the wider debate, read our breakdown of the SEC accredited investor definition and the reform push and what the INVEST Act would change.

Why does the $1 million line keep getting criticized?

Because it buys less than it used to. The U.S. GAO found that adjusting the $1 million threshold to roughly $2.3 million for inflation would cut qualifying households from about 8.5 million to 3.7 million. That was a 2013 estimate. Treat it as a sense of scale, not a current count.

The GAO also states the purpose of the test. It's meant to let in people who can withstand financial losses, and to streamline capital raising for small businesses. Qualifying says you can absorb a loss. It says nothing about whether a given deal is good.

What should you do after you qualify?

First, know what you've gained. The SEC says many offering exemptions limit participation to accredited investors or restrict non-accredited ones. Qualifying opens doors. It doesn't make anything inside them safe.

Second, slow down. Newly accredited investors tend to get pitched by friends, sponsors and platform ads all at once, and the pitch is almost always written by the person selling. Evaluate each deal downside first: who the sponsor is, how the structure works, what the fees are, and when you can get your money out. Many private offerings are illiquid and can lose everything you put in.

Third, learn the next tier. Some funds ask for more than accredited status, and our explainer on accredited investor versus qualified purchaser shows where that line sits. For the full path from qualifying to your first check, see how to become an accredited investor in 2026.

Common mistakes

The most frequent one is counting your home. It's excluded from the net worth test, so a paid-off house doesn't move you toward $1 million.

The second is forgetting the timing rule.

The third is reading one strong year as proof of income status. The test looks at two years. An issuer asking for tax returns will see exactly what you earned in each.

The last is treating qualification as a recommendation. Meeting the test means you're allowed to invest in certain deals. It doesn't mean any of them suit you.

FAQ

What are the requirements to become an accredited investor in 2026?

You need one of three things. Income over $200,000 in each of the last two years ($300,000 joint) with the same expected this year, or net worth over $1 million without your primary residence, or a Series 7, 65 or 82 license. The Investor.gov bulletin lays out each one.

Does my home count toward the $1 million?

No. Your primary residence is excluded from the net worth test. Borrowing against it in the 60 days before a purchase can still count as a liability, so a home equity draw to fund a deal can work against you.

Can a CFP qualify as an accredited investor?

Not under the licenses the SEC's investor-education office lists, which are Series 7, 65 and 82. If you hold a CFP and don't meet a money test, tell the issuer the truth and check the SEC's current rules before relying on the certificate.

Can a married couple combine income?

Yes. Joint income over $300,000 with a spouse or spousal equivalent counts if you met it in each of the last two years. Net worth can also be counted alone or together.

Your next step today

Write down your net worth without your home, then subtract any increase in debt secured by your home in the last 60 days, unless that loan paid for the home. Compare the result to $1 million. If you're close, ask the next issuer that pitches you what proof they require before you send documents.

Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.