A magnetic field detecting element comprises a stack including upper and lower magnetic layers, and a non-magnetic intermediate layer sandwiched therebetween, wherein magnetization of the magnetic layers changes in accordance with an external magnetic field; upper and lower shield electrode layers sandwiching the stack in a direction of stacking, wherein the upper and lower shield electrode layers supply sense current in the direction of stacking, and magnetically shield the stack; a bias magnetic layer provided on a surface of the stack opposite to an air bearing surface, and wherein the bias magnetic layer applies a bias magnetic field to the upper and lower magnetic layers in a direction perpendicular to the air bearing surface; and insulating layers provided on both sides of the stack in a track width direction thereof, wherein the stack has a stepped portion formed at the non-magnetic intermediate layer.