diff --git a/Rules.md b/Rules.md
index 049de576..3258125e 100644
--- a/Rules.md
+++ b/Rules.md
@@ -1221,14 +1221,30 @@ Remove redundant type from variable declarations.
 
 Option | Description
 --- | ---
-`--redundanttype` | Keep "inferred" (default) or "explicit" type annotation
+`--redundanttype` | "inferred" (default), "explicit", or "infer-locals-only"
 
 <details>
 <summary>Examples</summary>
 
 ```diff
+// inferred
 - let view: UIView = UIView()
 + let view = UIView()
+
+// explicit
+- let view: UIView = UIView()
++ let view: UIView = .init()
+
+// infer-locals-only
+  class Foo {
+-     let view: UIView = UIView()
++     let view: UIView = .init()
+
+      func method() {
+-         let view: UIView = UIView()
++         let view = UIView()
+      }
+  }
 ```
 
 </details>
diff --git a/Sources/Examples.swift b/Sources/Examples.swift
index 25853e47..65e6718b 100644
--- a/Sources/Examples.swift
+++ b/Sources/Examples.swift
@@ -777,8 +777,24 @@ private struct Examples {
 
     let redundantType = """
     ```diff
+    // inferred
     - let view: UIView = UIView()
     + let view = UIView()
+
+    // explicit
+    - let view: UIView = UIView()
+    + let view: UIView = .init()
+
+    // infer-locals-only
+      class Foo {
+    -     let view: UIView = UIView()
+    +     let view: UIView = .init()
+
+          func method() {
+    -         let view: UIView = UIView()
+    +         let view = UIView()
+          }
+      }
     ```
     """
 
diff --git a/Sources/OptionDescriptor.swift b/Sources/OptionDescriptor.swift
index f6130ac6..cd181762 100644
--- a/Sources/OptionDescriptor.swift
+++ b/Sources/OptionDescriptor.swift
@@ -807,7 +807,7 @@ struct _Descriptors {
     let redundantType = OptionDescriptor(
         argumentName: "redundanttype",
         displayName: "Redundant Type",
-        help: "Keep \"inferred\" (default) or \"explicit\" type annotation",
+        help: "\"inferred\" (default), \"explicit\", or \"infer-locals-only\"",
         keyPath: \.redundantType
     )
     let emptyBracesSpacing = OptionDescriptor(
diff --git a/Sources/Options.swift b/Sources/Options.swift
index cd84991a..a11d59f2 100644
--- a/Sources/Options.swift
+++ b/Sources/Options.swift
@@ -112,8 +112,20 @@ public enum WrapReturnType: String, CaseIterable {
 
 /// Annotation which should be kept when removing a redundant type
 public enum RedundantType: String, CaseIterable {
+    /// Preserves the type as a part of the property definition:
+    /// `let foo: Foo = Foo()` becomes `let foo: Foo = .init()`
     case explicit
+
+    /// Uses type inference to omit the type in the property definition:
+    /// `let foo: Foo = Foo()` becomes `let foo = Foo()`
     case inferred
+
+    /// Uses `.inferred` for properties within local scopes (method bodies, etc.),
+    /// but `.explicit` for globals and properties within types.
+    ///  - This is because type checking for globals and type properties
+    ///    using inferred types can be more expensive.
+    ///    https://twitter.com/uint_min/status/1441448033988722691?s=21
+    case inferLocalsOnly = "infer-locals-only"
 }
 
 /// Argument type for empty brace spacing behavior
diff --git a/Sources/ParsingHelpers.swift b/Sources/ParsingHelpers.swift
index dcff20f2..f449bd21 100644
--- a/Sources/ParsingHelpers.swift
+++ b/Sources/ParsingHelpers.swift
@@ -1441,6 +1441,67 @@ extension Formatter {
         }
     }
 
+    /// The type of scope that a declaration is contained within
+    enum DeclarationScope {
+        /// The declaration is a top-level global
+        case global
+
+        /// The declaration is a member of some type
+        case type
+
+        /// The declaration is within some local scope,
+        /// like a function body.
+        case local
+    }
+
+    /// The declaration scope (global, type, or local) that the
+    /// given token index is contained by.
+    func declarationScope(at i: Int) -> DeclarationScope {
+        /// Declarations which have `DeclarationScope.type`
+        let typeDeclararions = Set(["class", "struct", "enum", "actor", "extension"])
+
+        /// Declarations which have `DeclarationScope.local`
+        let localDeclararions = Set(["let", "var", "func", "subscript", "init", "deinit"])
+
+        let allDeclarationScopes = typeDeclararions.union(localDeclararions)
+
+        // back track through tokens until we find a startOfScope("{") that isDeclarationTypeKeyword
+        //  - we have to skip scopes that sit between this token and the its actual start of scope,
+        //    so we have to keep track of the number of unpaired end scope tokens we have encountered
+        var unpairedEndScopeCount = 0
+        var currentIndex = i
+        var startOfScope: Int?
+
+        while startOfScope == nil, currentIndex > 0 {
+            currentIndex -= 1
+
+            if tokens[currentIndex] == .endOfScope("}") {
+                unpairedEndScopeCount += 1
+            } else if tokens[currentIndex] == .startOfScope("{") {
+                if unpairedEndScopeCount == 0 {
+                    startOfScope = currentIndex
+                } else {
+                    unpairedEndScopeCount -= 1
+                }
+            }
+        }
+
+        // If this declaration isn't within any scope,
+        // it must be a global.
+        guard
+            let startOfScopeIndex = startOfScope,
+            let declarationTypeKeyword = lastToken(before: startOfScopeIndex, where: { allDeclarationScopes.contains($0.string) })
+        else {
+            return .global
+        }
+
+        if typeDeclararions.contains(declarationTypeKeyword.string) {
+            return .type
+        } else {
+            return .local
+        }
+    }
+
     // Swift modifier keywords, in preferred order
     var modifierOrder: [String] {
         var priorities = [String: Int]()
diff --git a/Sources/Rules.swift b/Sources/Rules.swift
index 1cc9a03e..d9082eb5 100644
--- a/Sources/Rules.swift
+++ b/Sources/Rules.swift
@@ -682,7 +682,30 @@ public struct _FormatRules {
                 return
             }
 
+            /// The implementation of RedundantType uses inferred or explicit,
+            /// potentially depending on the context.
+            enum RedundantTypeImplementation {
+                case inferred
+                case explicit
+            }
+
+            let implementation: RedundantTypeImplementation
+
             switch formatter.options.redundantType {
+            case .inferred:
+                implementation = .inferred
+            case .explicit:
+                implementation = .explicit
+            case .inferLocalsOnly:
+                switch formatter.declarationScope(at: i) {
+                case .global, .type:
+                    implementation = .explicit
+                case .local:
+                    implementation = .inferred
+                }
+            }
+
+            switch implementation {
             case .inferred:
                 formatter.removeTokens(in: colonIndex ... typeEndIndex)
                 if formatter.tokens[colonIndex - 1].isSpace {
diff --git a/Tests/ParsingHelpersTests.swift b/Tests/ParsingHelpersTests.swift
index 73687bbe..6b56e2b3 100644
--- a/Tests/ParsingHelpersTests.swift
+++ b/Tests/ParsingHelpersTests.swift
@@ -1416,6 +1416,55 @@ class ParsingHelpersTests: XCTestCase {
         _ = Formatter(tokens).parseDeclarations()
     }
 
+    // MARK: declarationScope
+
+    func testDeclarationScope_classAndGlobals() {
+        let input = """
+        let foo = Foo()
+
+        class Foo {
+            let instanceMember = Bar()
+        }
+
+        let bar = Bar()
+        """
+
+        let tokens = tokenize(input)
+        let formatter = Formatter(tokens)
+
+        XCTAssertEqual(formatter.declarationScope(at: 3), .global) // foo
+        XCTAssertEqual(formatter.declarationScope(at: 20), .type) // instanceMember
+        XCTAssertEqual(formatter.declarationScope(at: 33), .global) // bar
+    }
+
+    func testDeclarationScope_classAndLocal() {
+        let input = """
+        class Foo {
+            let instanceMember1 = Bar()
+
+            var instanceMember2: Bar = {
+                Bar()
+            }
+
+            func instanceMethod() {
+                let localMember1 = Bar()
+            }
+
+            let instanceMember3 = Bar()
+        }
+        """
+
+        let tokens = tokenize(input)
+        let formatter = Formatter(tokens)
+
+        XCTAssertEqual(formatter.declarationScope(at: 9), .type) // instanceMember1
+        XCTAssertEqual(formatter.declarationScope(at: 21), .type) // instanceMember2
+        XCTAssertEqual(formatter.declarationScope(at: 31), .local) // Bar()
+        XCTAssertEqual(formatter.declarationScope(at: 42), .type) // instanceMethod
+        XCTAssertEqual(formatter.declarationScope(at: 51), .local) // localMember1
+        XCTAssertEqual(formatter.declarationScope(at: 66), .type) // instanceMember3
+    }
+
     // MARK: spaceEquivalentToWidth
 
     func testSpaceEquivalentToWidth() {
diff --git a/Tests/RulesTests+Redundancy.swift b/Tests/RulesTests+Redundancy.swift
index 472c4053..bf7b1ec6 100644
--- a/Tests/RulesTests+Redundancy.swift
+++ b/Tests/RulesTests+Redundancy.swift
@@ -926,46 +926,59 @@ class RedundancyTests: RulesTests {
     func testVarRedundantTypeRemoval() {
         let input = "var view: UIView = UIView()"
         let output = "var view = UIView()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testVarRedundantArrayTypeRemoval() {
         let input = "var foo: [String] = [String]()"
         let output = "var foo = [String]()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testVarRedundantDictionaryTypeRemoval() {
         let input = "var foo: [String: Int] = [String: Int]()"
         let output = "var foo = [String: Int]()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testLetRedundantGenericTypeRemoval() {
         let input = "let relay: BehaviourRelay<Int?> = BehaviourRelay<Int?>(value: nil)"
         let output = "let relay = BehaviourRelay<Int?>(value: nil)"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testVarNonRedundantTypeDoesNothing() {
         let input = "var view: UIView = UINavigationBar()"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testLetRedundantTypeRemoval() {
         let input = "let view: UIView = UIView()"
         let output = "let view = UIView()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testLetNonRedundantTypeDoesNothing() {
         let input = "let view: UIView = UINavigationBar()"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testTypeNoRedundancyDoesNothing() {
         let input = "let foo: Bar = 5"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testClassTwoVariablesNoRedundantTypeDoesNothing() {
@@ -975,7 +988,8 @@ class RedundancyTests: RulesTests {
             var timeoutIntervalForRequest: TimeInterval = LGCoreKitConstants.websocketTimeOutTimeInterval
         }
         """
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testRedundantTypeRemovedIfValueOnNextLine() {
@@ -987,7 +1001,9 @@ class RedundancyTests: RulesTests {
         let view
             = UIView()
         """
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovedIfValueOnNextLine2() {
@@ -999,24 +1015,31 @@ class RedundancyTests: RulesTests {
         let view =
             UIView()
         """
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithComment() {
         let input = "var view: UIView /* view */ = UIView()"
         let output = "var view /* view */ = UIView()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithComment2() {
         let input = "var view: UIView = /* view */ UIView()"
         let output = "var view = /* view */ UIView()"
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testNonRedundantTernaryConditionTypeNotRemoved() {
         let input = "let foo: Bar = Bar.baz() ? .bar1 : .bar2"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testTernaryConditionAfterLetNotTreatedAsPartOfExpression() {
@@ -1028,41 +1051,49 @@ class RedundancyTests: RulesTests {
         let foo = Bar.baz()
         baz ? bar2() : bar2()
         """
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testNoRemoveRedundantTypeIfVoid() {
         let input = "let foo: Void = Void()"
+        let options = FormatOptions(redundantType: .inferred)
         testFormatting(for: input, rule: FormatRules.redundantType,
-                       exclude: ["void"])
+                       options: options, exclude: ["void"])
     }
 
     func testNoRemoveRedundantTypeIfVoid2() {
         let input = "let foo: () = ()"
+        let options = FormatOptions(redundantType: .inferred)
         testFormatting(for: input, rule: FormatRules.redundantType,
-                       exclude: ["void"])
+                       options: options, exclude: ["void"])
     }
 
     func testNoRemoveRedundantTypeIfVoid3() {
         let input = "let foo: [Void] = [Void]()"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testNoRemoveRedundantTypeIfVoid4() {
         let input = "let foo: Array<Void> = Array<Void>()"
+        let options = FormatOptions(redundantType: .inferred)
         testFormatting(for: input, rule: FormatRules.redundantType,
-                       exclude: ["typeSugar"])
+                       options: options, exclude: ["typeSugar"])
     }
 
     func testNoRemoveRedundantTypeIfVoid5() {
         let input = "let foo: Void? = Void?.none"
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     func testNoRemoveRedundantTypeIfVoid6() {
         let input = "let foo: Optional<Void> = Optional<Void>.none"
+        let options = FormatOptions(redundantType: .inferred)
         testFormatting(for: input, rule: FormatRules.redundantType,
-                       exclude: ["typeSugar"])
+                       options: options, exclude: ["typeSugar"])
     }
 
     func testRedundantTypeWithLiterals() {
@@ -1104,7 +1135,9 @@ class RedundancyTests: RulesTests {
         let f1 = ["foo": 5]
         let f2: [String: Int?] = ["foo": nil]
         """
-        testFormatting(for: input, output, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypePreservesLiteralRepresentableTypes() {
@@ -1116,7 +1149,8 @@ class RedundancyTests: RulesTests {
         let e: MyArrayRepresentable = ["bar"]
         let f: MyDictionaryRepresentable = ["baz": 1]
         """
-        testFormatting(for: input, rule: FormatRules.redundantType)
+        let options = FormatOptions(redundantType: .inferred)
+        testFormatting(for: input, rule: FormatRules.redundantType, options: options)
     }
 
     // --redundanttype explicit
@@ -1125,14 +1159,16 @@ class RedundancyTests: RulesTests {
         let input = "var view: UIView = UIView()"
         let output = "var view: UIView = .init()"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testLetRedundantGenericTypeRemovalExplicitType() {
         let input = "let relay: BehaviourRelay<Int?> = BehaviourRelay<Int?>(value: nil)"
         let output = "let relay: BehaviourRelay<Int?> = .init(value: nil)"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testVarNonRedundantTypeDoesNothingExplicitType() {
@@ -1145,7 +1181,8 @@ class RedundancyTests: RulesTests {
         let input = "let view: UIView = UIView()"
         let output = "let view: UIView = .init()"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovedIfValueOnNextLineExplicitType() {
@@ -1158,7 +1195,8 @@ class RedundancyTests: RulesTests {
             = .init()
         """
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovedIfValueOnNextLine2ExplicitType() {
@@ -1171,21 +1209,24 @@ class RedundancyTests: RulesTests {
             .init()
         """
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithCommentExplicitType() {
         let input = "var view: UIView /* view */ = UIView()"
         let output = "var view: UIView /* view */ = .init()"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithComment2ExplicitType() {
         let input = "var view: UIView = /* view */ UIView()"
         let output = "var view: UIView = /* view */ .init()"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithStaticMember() {
@@ -1206,7 +1247,8 @@ class RedundancyTests: RulesTests {
         }
         """
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeRemovalWithStaticFunc() {
@@ -1227,7 +1269,8 @@ class RedundancyTests: RulesTests {
         }
         """
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeDoesNothingWithStaticMemberMakingCopy() {
@@ -1264,14 +1307,58 @@ class RedundancyTests: RulesTests {
         let foo: Foo = .init()
         """
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     func testRedundantTypeIfVoid() {
         let input = "let foo: [Void] = [Void]()"
         let output = "let foo: [Void] = .init()"
         let options = FormatOptions(redundantType: .explicit)
-        testFormatting(for: input, output, rule: FormatRules.redundantType, options: options)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
+    }
+
+    // --redundanttype infer-locals-only
+
+    func testRedundantTypeinferLocalsOnly() {
+        let input = """
+        let globalFoo: Foo = Foo()
+
+        struct SomeType {
+            let instanceFoo: Foo = Foo()
+
+            func method() {
+                let localFoo: Foo = Foo()
+                let localString: String = "foo"
+            }
+
+            let instanceString: String = "foo"
+        }
+
+        let globalString: String = "foo"
+        """
+
+        let output = """
+        let globalFoo: Foo = .init()
+
+        struct SomeType {
+            let instanceFoo: Foo = .init()
+
+            func method() {
+                let localFoo = Foo()
+                let localString = "foo"
+            }
+
+            let instanceString: String = "foo"
+        }
+
+        let globalString: String = "foo"
+        """
+
+        let options = FormatOptions(redundantType: .inferLocalsOnly)
+        testFormatting(for: input, output, rule: FormatRules.redundantType,
+                       options: options)
     }
 
     // MARK: - redundantNilInit