These are few steps that you need to follow to have windows (AD) authentication on your local environment.
1- Add windows Authentication Feature to IIS
2- Enable Windows Authentication
3- For making sure TDS is working as expected enable Anonymous Authentication
4- Add DisableLoopbackCheck to your registery
1. Click Start, click Run, type regedit, and then click OK.
2. Locate and then click the following registry subkey: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
3. Right-click Lsa, point to New, and then click DWORD Value.
4. Type DisableLoopbackCheck, and then press ENTER.
5. Right-click DisableLoopbackCheck, and then click Modify.
6. In the Value data box, type 1, and then click OK.
7. Exit Registry Editor.