Abstract: A magnetic element having an improved MR rate. The magnetic element 1 is made up of plural layered films of different compositions and exhibits a magneto-resistance effect that the magneto-resistance value is changed on application of a magnetic field. The magnetic element 1 includes a recess 11 for transmitting the current along the layering direction of the layered films. The current flows through the portion of the magnetic element 1 not having the recess 11 so as to have a component along the film layering direction A, with the result that electrons taking part in current conduction may be propagated as the electrons traverse the boundary surfaces of the plural layered films.