Share permissions control who can reach a shared folder over the network and offer three levels: Read, Change, and Full Control. They apply only to network access and cover the entire share as a single unit. NTFS permissions control access to the files and folders themselves, apply to local and network access alike, offer thirteen granular rights with Allow and Deny entries, and inherit down the folder tree. When a user connects through a share, Windows evaluates both layers and grants the more restrictive result.

Almost every "I have permission but still can't save the file" ticket on a Windows file server comes down to the interaction between these two layers. This guide explains what each one does, how they combine, the setup most administrators settle on, and the mistakes that generate the tickets. If you need a refresher on the NTFS side first, start with our NTFS permissions overview.

Side-by-Side Comparison

Share permissionsNTFS permissions
Applies toNetwork access through the share (SMB) onlyAll access: local logon, network, scripts, services, backups
ScopeThe whole share as one unit; every file and subfolder gets the same settingEach file and folder individually, with inheritance from parent folders
Access levelsThree: Read, Change, Full ControlSix basic rights (Full Control, Modify, Read & Execute, List Folder Contents, Read, Write) built from thirteen advanced rights
Allow and DenyBoth, but rarely used with DenyBoth; explicit Deny overrides Allow
InheritanceNoneYes, from parent folder to children, and can be blocked per folder
Where it is storedServer registry (LanmanServer\Shares\Security)Security descriptor on each file and folder on the NTFS volume
Survives a copy or restoreNo; re-creating a share resets itYes when copied with security intact (robocopy /SEC, backup restore)
Default when createdEveryone: ReadInherited from the parent folder
Works on FAT/exFAT volumesYes (the only protection available there)No; NTFS or ReFS only
Set inAdvanced Sharing dialog, Server Manager, net share, Grant-SmbShareAccessSecurity tab, icacls, Set-Acl, Group Policy file system settings
Best used forA wide gate that lets authenticated users reach the shareThe actual access control decisions

Share Permissions Explained

A share is a folder the Server service exposes over SMB under a name such as \\FileServer01\Finance. Share permissions are the access control list attached to that share name. They are checked once, when a user's session connects to the share, and they apply uniformly to everything beneath it. There is no way to give one subfolder a different share permission from its siblings; that granularity belongs to NTFS.

Share levelAllows
ReadList folders, open and read files, run programs
ChangeEverything in Read, plus create, modify, and delete files and folders
Full ControlEverything in Change, plus change NTFS permissions and take ownership through the share

Three details about share permissions cause most of the confusion:

  • They are invisible to local users. An administrator logged on to the server, a scheduled task, a backup agent, or an application reading the disk path directly never touches share permissions.
  • They live in the registry, not on the folder. Move the folder to a new server or restore it from backup and the share permissions do not come with it. When the share is re-created, Windows applies the default of Everyone with Read.
  • They do not inherit and cannot be scoped. One setting per share, full stop. Nested shares (a share inside a share) each carry their own permissions, and the user gets whichever share path they connected through.

Two share-level features are worth knowing even if you keep share permissions wide. Access-Based Enumeration hides folders a user cannot open, based on their NTFS permissions, and is enabled per share. Offline caching settings are also per share. Neither changes what a user can do, only what they see.

NTFS Permissions Explained

NTFS permissions are stored with each file and folder in its security descriptor, so they travel with the data and apply no matter how it is reached. Each entry names a user or group, an Allow or Deny type, a set of rights, and inheritance flags that control whether the entry flows to subfolders and files. The six basic rights you see in the Security tab are bundles of thirteen advanced rights, from Traverse Folder and Read Attributes up to Change Permissions and Take Ownership.

The rules that matter when comparing with share permissions:

  • Permissions accumulate across groups. A user in a Read group and a Modify group gets Modify.
  • Deny beats Allow. One explicit Deny entry removes that right regardless of how many Allow entries grant it.
  • Explicit beats inherited. An entry set directly on a folder outranks one inherited from a parent, which is how an explicit Allow can override an inherited Deny.
  • Owners always win. The owner of a file can change its permissions even when the ACL denies them access.

The NTFS permissions overview covers each right and the inheritance model in detail, and the best practices guide covers how to structure groups and folders so the rules stay manageable.

How Share and NTFS Permissions Combine

When a user opens \\FileServer01\Finance\Budgets\2026.xlsx, Windows makes two independent decisions and then takes the stricter one:

  1. Share check. Collect every share permission entry that applies to the user and their groups. Allows accumulate; any Deny removes that level. The result is Read, Change, Full Control, or nothing.
  2. NTFS check. Collect every NTFS entry on the file (explicit and inherited) that applies to the user and their groups. Allows accumulate, Deny wins, explicit outranks inherited. The result is a set of NTFS rights.
  3. Intersection. The user's effective access is whatever both checks allow. Share Change and NTFS Full Control yields Modify-level access; share Full Control and NTFS Read yields Read.

The rule in one line: within each layer, permissions are cumulative and Deny wins; between the two layers, the most restrictive result wins. Share permissions can never widen what NTFS allows, and NTFS can never widen what the share allows.

The same user logged on to the file server directly skips step one entirely, which is why access can look different locally and over the network.

Worked Examples

Share permissionNTFS permissionEffective over the networkEffective locally
Everyone: ReadFinance-RW: ModifyReadModify
Authenticated Users: Full ControlFinance-RO: Read & ExecuteRead & ExecuteRead & Execute
Authenticated Users: ChangeFinance-RW: Full ControlModify (no permission changes)Full Control
Finance-RW: Full ControlFinance-RW: Modify, Contractors: Deny Write (user is in both)Read & ExecuteRead & Execute
Authenticated Users: Full ControlNo entry for the user or their groupsNothingNothing
No entry for the user or their groupsDomain Users: ModifyNothingModify
Domain Users: Read, Finance-RW: Change (user is in both)Finance-RW: ModifyModifyModify

The first row is the classic help-desk case: the folder was shared with the default Everyone Read, NTFS was set up correctly, and the users can edit files from the server console but not from their desktops. The last row shows share permissions accumulating across groups the same way NTFS permissions do.

Which One Should You Use?

Use both, but let NTFS make the decisions. The setup that most administrators and Microsoft guidance converge on:

  • Share permissions: Authenticated Users with Full Control (or Change if you want to prevent permission edits through the share). Remove the Everyone entry.
  • NTFS permissions: Domain local groups with the specific rights each role needs, assigned near the top of the tree and inherited downward, following the AGDLP model.

The reasons to keep the real control in NTFS:

  • One place to manage. Every access decision is on the folder, visible in one Security tab, exported by one report.
  • Consistent locally and remotely. Administrators, services, and backup jobs see the same rules as network users.
  • Granular and inheritable. Different subfolders can have different rules; share permissions cannot express that at all.
  • Survives migration. NTFS permissions travel with the data. Share permissions have to be re-created and are easy to forget.
  • Auditable. NTFS supports auditing entries (SACLs) and effective access calculation; share permissions do not.

Why not Everyone Full Control at the share level? It works, and older guidance recommended it, but Everyone includes anonymous and guest sessions on servers where those are enabled. Authenticated Users gives the same practical result while excluding unauthenticated connections. Full Control at the share level is safe only because NTFS is doing the restricting; see Everyone Full Control security risks for what happens when it is set on the NTFS side as well.

The one case for restrictive share permissions is when you want a folder editable locally but read-only over the network, for example a share that publishes build output or reference documents that only a server-side process should change. Setting the share to Read enforces that without touching NTFS.

Common Mistakes

SymptomCauseFix
Users can edit on the server but not from their PCsShare left at the default Everyone ReadRaise the share to Authenticated Users Change or Full Control
Everyone can read sensitive data across the networkShare and NTFS both grant Everyone; nobody restricted the NTFS sideReplace Everyone with role groups in NTFS; keep the share wide but not Everyone
Permissions vanished after a server migrationNTFS copied with the data, share permissions left behind in the old registryDocument shares before migrating; use Get-SmbShareAccess exports or net share output as the record
One user is denied despite being in the right groupA Deny entry at either layer, or the user is also in a group that carries a DenyTrace both layers for every group the user belongs to, including nested groups
Different results through two share pathsNested shares with different permissions pointing at overlapping foldersConsolidate to one share per top-level folder; audit for nested shares
Administrator cannot change permissions through the shareShare set to Change rather than Full ControlGrant Full Control at the share to the admin group, or change permissions locally
Access works, then fails after group changesKerberos ticket or SMB session still carries the old group listHave the user log off and on, or wait for the ticket to refresh

How to View Both Layers

Because the two layers live in different places, checking a user's real access means looking at both. On a single server:

# share permissions for every share on this server
Get-SmbShare | Get-SmbShareAccess | Format-Table Name, AccountName, AccessControlType, AccessRight -AutoSize

# NTFS permissions on the folder behind a share
(Get-Acl -Path (Get-SmbShare -Name "Finance").Path).Access |
    Format-Table IdentityReference, FileSystemRights, AccessControlType, IsInherited -AutoSize

Our Get-Acl cheat sheet covers the NTFS side in depth, including recursion, filtering, and export. The Windows Effective Access tab is useful but incomplete: it evaluates NTFS only, so it reports what a local user could do, not what a network user will get.

Across a whole environment the manual approach does not scale, because share permissions have to be collected per server, NTFS permissions per folder, and group membership from Active Directory, and then reconciled. Permissions Reporter collects all three in one scan: the share permissions report lists every share and its share-level entries, the folder and file reports cover NTFS with nested group expansion, and the share security metrics dashboard flags shares open to Everyone. The Basic edition is free.

Related Resources

NTFS vs Share Permissions FAQ

Which permissions take precedence in a shared folder, NTFS or share?

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Do NTFS permissions override share permissions?

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What is the recommended share permission setting?

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Why can a user edit files locally but not over the network?

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Where are share permissions stored?

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How do I see the effective permissions when share and NTFS combine?

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