In a blog post, the tech giant said the California Consumer Privacy Act (CCPA) marks an important step towards providing people with more robust control over their data in the US.
"It also shows that we can make progress to strengthen privacy protections in this country at the state level even when Congress can't or won't act," Julie Brill, Microsoft's chief privacy officer, said on Monday.
The CCPA allows people to request that data be deleted and gives them the opportunity to opt out of having their information sold to a third party.
In 2018, Microsoft voluntarily extended the core data privacy rights included in the European Union's General Data Protection Regulation (GDPR) to customers around the world, not just to those in the EU who are covered by the regulation.
"Similarly, we will extend CCPA's core rights for people to control their data to all our customers in the US," it said.
More than 25 million people around the world, including over 10 million people in the US, have used Microsoft's privacy dashboard to understand and control their personal data.
Under CCPA, companies must be transparent about data collection and use, and provide people with the option to prevent their personal information from being sold.
"Microsoft will continue to monitor those changes, and make the adjustments needed to provide effective transparency and control under CCPA to all people in the US," Brill said.
The European Union last year rolled out new privacy regulations for its citizens called the GDPR, but the US doesn't have a similar law.