diff --git a/changelogs/fragments/75042-lowercase-dash-n-with-luseradd-on-all-distros.yml b/changelogs/fragments/75042-lowercase-dash-n-with-luseradd-on-all-distros.yml
new file mode 100644
index 00000000000..f64b07dcf3e
--- /dev/null
+++ b/changelogs/fragments/75042-lowercase-dash-n-with-luseradd-on-all-distros.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - user - fix creating a local user if the user group already exists (https://github.com/ansible/ansible/pull/75042)
diff --git a/lib/ansible/modules/user.py b/lib/ansible/modules/user.py
index a34bef22fd4..9ad76a90948 100644
--- a/lib/ansible/modules/user.py
+++ b/lib/ansible/modules/user.py
@@ -693,22 +693,26 @@ class User(object):
             # exists with the same name as the user to prevent
             # errors from useradd trying to create a group when
             # USERGROUPS_ENAB is set in /etc/login.defs.
-            if os.path.exists('/etc/redhat-release'):
-                dist = distro.version()
-                major_release = int(dist.split('.')[0])
-                if major_release <= 5 or self.local:
-                    cmd.append('-n')
+            if self.local:
+                # luseradd uses -n instead of -N
+                cmd.append('-n')
+            else:
+                if os.path.exists('/etc/redhat-release'):
+                    dist = distro.version()
+                    major_release = int(dist.split('.')[0])
+                    if major_release <= 5:
+                        cmd.append('-n')
+                    else:
+                        cmd.append('-N')
+                elif os.path.exists('/etc/SuSE-release'):
+                    # -N did not exist in useradd before SLE 11 and did not
+                    # automatically create a group
+                    dist = distro.version()
+                    major_release = int(dist.split('.')[0])
+                    if major_release >= 12:
+                        cmd.append('-N')
                 else:
                     cmd.append('-N')
-            elif os.path.exists('/etc/SuSE-release'):
-                # -N did not exist in useradd before SLE 11 and did not
-                # automatically create a group
-                dist = distro.version()
-                major_release = int(dist.split('.')[0])
-                if major_release >= 12:
-                    cmd.append('-N')
-            else:
-                cmd.append('-N')
 
         if self.groups is not None and len(self.groups):
             groups = self.get_groups_set()
diff --git a/test/integration/targets/user/tasks/test_local.yml b/test/integration/targets/user/tasks/test_local.yml
index 5326073935d..67c24a210cb 100644
--- a/test/integration/targets/user/tasks/test_local.yml
+++ b/test/integration/targets/user/tasks/test_local.yml
@@ -86,6 +86,7 @@
     - testgroup3
     - testgroup4
     - testgroup5
+    - local_ansibulluser
   tags:
     - user_test_local_mode
 
@@ -163,6 +164,7 @@
     - testgroup3
     - testgroup4
     - testgroup5
+    - local_ansibulluser
   tags:
     - user_test_local_mode