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Is Visual Studio Code Free? Yes, Here's the Licence Catch

Yes, Visual Studio Code is free. Microsoft's FAQ says VS Code is free for private or commercial use, and there's no premium edition of the editor itself.

Visual Studio Code, usually shortened to VS Code, is Microsoft's code editor for Windows, macOS and Linux. You can use it to build a client's website, tweak a WordPress theme or run scripts for your business with nothing to license. The questions worth asking are about the licence, the data it sends to Microsoft, and whether the AI features are free too. Here's the straight answer to each.

What you get with free VS Code

  • The full editor, for private or commercial use.
  • Debugging, task running and version control, which Microsoft describes as the core of its quick code-build-debug cycle.
  • Extensions from Microsoft and third parties.
  • Portable Mode, which keeps your settings and data with the installation, for example on a USB drive.
  • Built-in AI chat, with options to use it through GitHub Copilot or your own model keys, or to hide it.

The licence catch: VS Code vs Code - OSS

This is the part that confuses people. Microsoft's FAQ explains that the github.com/microsoft/vscode repository, called Code - OSS, is where Microsoft develops the product, and that source code is available to everyone under a standard MIT licence.

The Visual Studio Code you download from Microsoft is a distribution of Code - OSS with Microsoft-specific customisations, released under a traditional Microsoft product licence. So both are free, but they're not under the same terms. The product licence gives you rights to use the software as the agreement allows, and it includes the usual sections on installation, updates and data.

Visual Studio Code (Microsoft download)Code - OSS (source repository)
Free to useYes, private or commercialYes
LicenceMicrosoft product licenceMIT licence
Microsoft customisationsIncludedNot included
Who it suitsEveryday usePeople building their own version

For a business owner or freelancer, the download from Microsoft is the one you want. The licence question mostly matters to people who build their own editor from the source.

Telemetry: what VS Code sends to Microsoft

VS Code collects usage data and crash reports and sends them to Microsoft, which says it uses them to improve its products. You can switch this off:

  1. Open File, then Preferences, then Settings.
  2. Search for telemetry.
  3. Set the Telemetry: Telemetry Level setting to off.

Microsoft says that silences all telemetry events, including crash reporting, from then on. There's one exception to know about: extensions you install may collect their own usage data, and that setting doesn't control them. Check each extension's documentation if privacy matters for your client work.

Are the AI features in VS Code free?

Partly. Signing in with GitHub connects VS Code to your GitHub Copilot plan. Microsoft's FAQ says individual developers without Copilot through their organisation have access to the Copilot Free plan, which gives a monthly allowance of inline suggestions and chat, and that restrictions may apply.

You can also use chat with a bring-your-own-key model without a GitHub account or Copilot plan, though features that depend on the Copilot service, such as inline suggestions, aren't available that way. And if you'd rather not have AI in your editor, Microsoft documents how to hide the built-in AI features.

If you do use Copilot, my GitHub Copilot prompts will help you get more from a free allowance.

VS Code isn't the same as Visual Studio

Visual Studio IDE is a separate, fuller development environment from Microsoft. VS Code is the lighter editor. Microsoft positions VS Code for a quick code-build-debug cycle and leaves more complex workflows to fuller IDEs such as Visual Studio. When you see a question about a Visual Studio licence, check which product it means.

Who VS Code suits

It suits anyone who edits code or text files regularly, from developers to marketers who touch HTML, CSS or scripts. If you're weighing it against other editors, my guide to the best code editor compares the main choices.

Is it safe to use VS Code for client work?

Yes, with two checks. First, the licence: Microsoft says VS Code is free for private or commercial use, so a client project is fine. Second, data: switch the telemetry level to off if you don't want usage data sent to Microsoft, and review the extensions you install, because Microsoft warns that extensions may collect their own usage data outside that setting.

Work with me

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If your work involves sensitive files, Microsoft also documents a way to hide the built-in AI features, so nothing you type is sent to an AI model by accident.

My verdict: VS Code is free, including for commercial work, so there's no reason to look for a cracked or trial version. Download it from Microsoft, switch telemetry off if you want privacy, check your extensions, and use the Copilot Free plan or your own key if you want AI help.

Frequently asked questions

Is VS Code free for commercial use?

Yes. Microsoft's FAQ says VS Code is free for private or commercial use.

Is VS Code open source?

The Code - OSS repository is open source under the MIT licence. The Visual Studio Code you download from Microsoft is a distribution of it with Microsoft-specific customisations, released under a Microsoft product licence.

How do I turn off telemetry in VS Code?

Open Settings, search for telemetry and set Telemetry: Telemetry Level to off. Microsoft says this silences all telemetry events, including crash reporting. Extensions may still collect their own data.

Is GitHub Copilot free in VS Code?

Individual developers can use the Copilot Free plan, which Microsoft says gives a monthly allowance of inline suggestions and chat, with restrictions that may apply. You can also use chat with your own model keys.

Is VS Code the same as Visual Studio?

No. Visual Studio IDE is a separate, fuller development environment. VS Code is Microsoft's lighter code editor.

Can I run VS Code from a USB drive?

Yes. Microsoft says VS Code has a Portable Mode that keeps your settings and data with the installation, for example on a USB drive.

Can I use VS Code without AI?

Yes. Microsoft says you can use VS Code without AI features and documents how to hide the built-in AI features.

Does VS Code collect data?

Yes, by default. Microsoft says VS Code collects usage data and crash reports, and you can switch this off with the Telemetry: Telemetry Level setting.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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