This paper deals with an optimal angle error reduction method of magnetic position sensor using hall effect elements. The angle detection simulation for the magnetic position sensor is performed by 3 dimensional finite element method and Taguchi method, one of the design of experiments. The magnetic position sensor is required to generate ideal sine and cosine waveforms from its hall effect elements according to rotation angle for precise angle information. However, the output signals are easy to include harmonics due to uneven magnetic field distribution from permanent magnet in the air-gap in the vicinity of hall effect elements. For the Taguchi method, three design parameters related to position of hall effect elements and shape of back yoke are selected. The characteristics of optimal magnetic position sensor are compared with those of original one in terms of simulation as well as experiment. Finally, the performances of the motor adopting original model and optimal model are represented for the purpose of verification of motor performance due to signals from magnetic position sensor.