This paper describes orientation dependence of magnetic properties on undeformed and deformed low carbon steel. Magnetic parameters have no changes for undeformed specimen when the direction of applied field changes, while the coercive force decreases and the inductance, the resistance increases with increasing the angle between the direction of applied field and the direction of cold rolling for deformed specimen. This tendency becomes more significant as the reduction ratio increases, which means uniaxial anisotropy was induced by the cold rolling and the parallel direction to cold rolling was hard axis and the perpendicular to that direction was easy axis. As reduction ratio increases dislocations increase homogeneously firstly, and then, they tangle and form cell structures. The cell structure extends to the direction parallel to cold rolling direction. These microstructure changes reflect on the magnetic properties changes including formation of anisotropy.