Difference Between a Local Account and a Microsoft Account on Windows

Syncing, OneDrive, password recovery, and how to switch between the two.

Easy 2 min read Published on 2026 By Equipo SolucionaPC

When setting up Windows, you're asked to sign in with a Microsoft account — but there is also the option to use a local account, though Windows doesn't always show it easily.

Local accountMicrosoft account
Sync settings between PCsNoYes
Built-in OneDriveNoYes
Recover a forgotten passwordHarderEasy, from another device
"Find my device" if lostNoYes
Requires internet to create the accountNoYes
Your data on Microsoft's serversMinimalMore (depending on what you enable)

Which one suits you?

For most people, a Microsoft account is more practical — especially if you use OneDrive, have more than one Windows device, or worry about losing access if you forget your password. A local account makes sense for those who prioritise keeping as much as possible off Microsoft's servers, or simply prefer the simplicity of not linking the PC to any online account.

A little-known fact: Windows 11 makes it quite hard to create a local account during initial setup — it pushes towards the Microsoft account fairly insistently. There is a way to skip this during installation (temporarily disconnecting the internet connection, or with a specific command on that screen), but it isn't as straightforward as in earlier Windows versions.

Can I switch from one to the other afterwards?

Yes, at any time: Settings → Accounts → "Your info" → you'll see the option "Sign in with a local account instead" (if you have a Microsoft account) or "Sign in with a Microsoft account instead" (if you have a local account). The switch doesn't affect your personal files.

Tip: if you switch from a Microsoft account to a local one, you'll lose access to OneDrive and sync between devices — make sure you have copies of anything you need before making the switch.

Frequently asked questions

Can I use Windows without any Microsoft account?

Yes, with a local account. Windows 11 makes this harder during initial setup than earlier versions, but it's still possible, and you can switch to a local account afterwards at any time from Settings.

Do I lose my files when switching from a Microsoft account to a local one?

No, your personal files remain intact. What you do lose is OneDrive sync and settings sync between devices, which depend specifically on the Microsoft account.

What happens if I forget a local account's password?

It's harder to recover than with a Microsoft account, which lets you reset it from another device or browser. With a local account, without a security question set up beforehand, recovery is quite a bit more limited.

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