diff --git a/__tests__/auth-provider.test.tsx b/__tests__/auth-provider.test.tsx
index 5855006f..46a75b82 100644
--- a/__tests__/auth-provider.test.tsx
+++ b/__tests__/auth-provider.test.tsx
@@ -91,7 +91,7 @@ describe('Auth0Provider', () => {
   });
 
   it('should handle errors when checking session', async () => {
-    clientMock.checkSession.mockRejectedValue({
+    clientMock.checkSession.mockRejectedValueOnce({
       error: '__test_error__',
       error_description: '__test_error_description__',
     });
@@ -248,6 +248,7 @@ describe('Auth0Provider', () => {
   });
 
   it('should provide a logout method', async () => {
+    clientMock.isAuthenticated.mockResolvedValue(true);
     const wrapper = createWrapper();
     const { waitForNextUpdate, result } = renderHook(
       () => useContext(Auth0Context),
@@ -255,10 +256,33 @@ describe('Auth0Provider', () => {
     );
     await waitForNextUpdate();
     expect(result.current.logout).toBeInstanceOf(Function);
-    await result.current.logout({ returnTo: '__return_to__' });
+    act(() => {
+      result.current.logout();
+    });
+    expect(clientMock.logout).toHaveBeenCalled();
+    // Should not update state until returned from idp
+    expect(result.current.isAuthenticated).toBe(true);
+  });
+
+  it('should update state for local logouts', async () => {
+    clientMock.isAuthenticated.mockResolvedValue(true);
+    clientMock.getUser.mockResolvedValue('__test_user__');
+    const wrapper = createWrapper();
+    const { waitForNextUpdate, result } = renderHook(
+      () => useContext(Auth0Context),
+      { wrapper }
+    );
+    await waitForNextUpdate();
+    expect(result.current.isAuthenticated).toBe(true);
+    expect(result.current.user).toBe('__test_user__');
+    act(() => {
+      result.current.logout({ localOnly: true });
+    });
     expect(clientMock.logout).toHaveBeenCalledWith({
-      returnTo: '__return_to__',
+      localOnly: true,
     });
+    expect(result.current.isAuthenticated).toBe(false);
+    expect(result.current.user).toBeUndefined();
   });
 
   it('should provide a getAccessTokenSilently method', async () => {
diff --git a/src/auth0-provider.tsx b/src/auth0-provider.tsx
index 25670d5d..d205398a 100644
--- a/src/auth0-provider.tsx
+++ b/src/auth0-provider.tsx
@@ -4,6 +4,7 @@ import {
   Auth0ClientOptions,
   CacheLocation,
   IdToken,
+  LogoutOptions,
   PopupLoginOptions,
   PopupConfigOptions,
   RedirectLoginOptions as Auth0RedirectLoginOptions,
@@ -224,6 +225,13 @@ const Auth0Provider = (opts: Auth0ProviderOptions): JSX.Element => {
     dispatch({ type: 'LOGIN_POPUP_COMPLETE', isAuthenticated, user });
   };
 
+  const logout = (opts: LogoutOptions = {}): void => {
+    client.logout(opts);
+    if (opts.localOnly) {
+      dispatch({ type: 'LOGOUT' });
+    }
+  };
+
   return (
     <Auth0Context.Provider
       value={{
@@ -239,7 +247,7 @@ const Auth0Provider = (opts: Auth0ProviderOptions): JSX.Element => {
         loginWithRedirect: (opts): Promise<void> =>
           client.loginWithRedirect(toAuth0LoginRedirectOptions(opts)),
         loginWithPopup,
-        logout: (opts): void => client.logout(opts),
+        logout,
       }}
     >
       {children}
diff --git a/src/reducer.tsx b/src/reducer.tsx
index af3da671..514da083 100644
--- a/src/reducer.tsx
+++ b/src/reducer.tsx
@@ -7,6 +7,7 @@ type Action =
       isAuthenticated: boolean;
       user?: User;
     }
+  | { type: 'LOGOUT' }
   | { type: 'ERROR'; error: Error };
 
 /**
@@ -28,6 +29,12 @@ export const reducer = (state: AuthState, action: Action): AuthState => {
         isLoading: false,
         error: undefined,
       };
+    case 'LOGOUT':
+      return {
+        ...state,
+        isAuthenticated: false,
+        user: undefined,
+      };
     case 'ERROR':
       return {
         ...state,