diff --git a/.changeset/tracked-token-warning.md b/.changeset/tracked-token-warning.md
new file mode 100644
index 00000000..983cd44e
--- /dev/null
+++ b/.changeset/tracked-token-warning.md
@@ -0,0 +1,5 @@
+---
+"@taskless/cli": patch
+---
+
+When `.taskless/.env.local.json` is tracked by git, the warning now gives the steps that help: `git rm --cached` to untrack it, check `.taskless/.gitignore`, and if the commit was pushed, replace the token with `auth logout` then `auth login`. Before, it only said to gitignore the file, which does nothing for a file git already tracks.
diff --git a/packages/cli/src/auth/token.ts b/packages/cli/src/auth/token.ts
index 150c6215..7223987a 100644
--- a/packages/cli/src/auth/token.ts
+++ b/packages/cli/src/auth/token.ts
@@ -68,7 +68,7 @@ export async function saveToken(
 
   const tasklessDirectory = join(cwd, ".taskless");
   await mkdir(tasklessDirectory, { recursive: true });
-  await addToGitignore(cwd, [".env.local.json"]);
+  await addToGitignore(cwd, [PER_REPO_AUTH_FILE]);
   await writeFile(join(tasklessDirectory, PER_REPO_AUTH_FILE), content, {
     mode: 0o600,
   });
@@ -126,7 +126,7 @@ function warnIfLegacyToken(): void {
 
 /** Warn if .env.local.json is tracked by git */
 async function warnIfTracked(cwd: string): Promise<void> {
-  const relativePath = ".taskless/.env.local.json";
+  const relativePath = `.taskless/${PER_REPO_AUTH_FILE}`;
   try {
     const output = await new Promise<string>((resolve, reject) => {
       execFile("git", ["ls-files", relativePath], { cwd }, (error, stdout) => {
@@ -138,8 +138,16 @@ async function warnIfTracked(cwd: string): Promise<void> {
       });
     });
     if (output.length > 0) {
+      // Already in the index, so a .gitignore entry alone changes nothing:
+      // git keeps tracking a file it already tracks.
+      const cli = getCliPrefix();
       console.error(
-        "Warning: .taskless/.env.local.json is tracked by git. This file contains authentication tokens and should be gitignored."
+        [
+          `Warning: ${relativePath} is tracked by git. It contains an authentication token.`,
+          `  1. Untrack it and keep your local copy: git rm --cached ${relativePath}`,
+          `  2. Make sure .taskless/.gitignore lists ${PER_REPO_AUTH_FILE}, then commit.`,
+          `  3. If a commit containing it was pushed, treat the token as exposed and replace it: \`${cli} auth logout\`, then \`${cli} auth login\`. Logout only deletes the local copy, so it does not revoke the old token.`,
+        ].join("\n")
       );
     }
   } catch {
diff --git a/packages/cli/test/token.test.ts b/packages/cli/test/token.test.ts
index 5956ea70..b08f4f05 100644
--- a/packages/cli/test/token.test.ts
+++ b/packages/cli/test/token.test.ts
@@ -1,3 +1,4 @@
+import { execFileSync } from "node:child_process";
 import { mkdtemp, readFile, rm, writeFile, mkdir } from "node:fs/promises";
 import { tmpdir } from "node:os";
 import { join } from "node:path";
@@ -14,6 +15,7 @@ beforeEach(async () => {
 
 afterEach(async () => {
   vi.useRealTimers();
+  vi.restoreAllMocks();
   vi.unstubAllEnvs();
   await rm(temporaryDirectory, { recursive: true, force: true });
 });
@@ -169,3 +171,36 @@ describe("removeToken", () => {
     expect(await removeToken()).toBe(false);
   });
 });
+
+describe("tracked token warning", () => {
+  it("tells the user to untrack the file, not just gitignore it", async () => {
+    await writeAuthFile({ access_token: "tracked-token" });
+    execFileSync("git", ["init", "-q"], { cwd: temporaryDirectory });
+    execFileSync("git", ["add", ".taskless/.env.local.json"], {
+      cwd: temporaryDirectory,
+    });
+    const errors: string[] = [];
+    vi.spyOn(console, "error").mockImplementation((message: unknown) => {
+      errors.push(String(message));
+    });
+
+    expect(await getToken(temporaryDirectory)).toBe("tracked-token");
+
+    const warning = errors.find((line) => line.includes("tracked by git"));
+    expect(warning).toContain("git rm --cached .taskless/.env.local.json");
+    expect(warning).toContain("auth logout");
+    expect(warning).toContain("auth login");
+    expect(warning).toContain("does not revoke");
+  });
+
+  it("stays quiet when the file is not tracked", async () => {
+    await writeAuthFile({ access_token: "untracked-token" });
+    execFileSync("git", ["init", "-q"], { cwd: temporaryDirectory });
+    const spy = vi.spyOn(console, "error").mockImplementation(() => {});
+
+    expect(await getToken(temporaryDirectory)).toBe("untracked-token");
+    expect(
+      spy.mock.calls.some((call) => String(call[0]).includes("tracked by git"))
+    ).toBe(false);
+  });
+});