A magnetoresistive device comprises: a first shield layer and a second shield layer disposed with a space from each other in the direction of thickness; an MR element disposed between the first and second shield layers; and a layered structure disposed between the first and second shield layers on both sides of the MR element. The layered structure includes an insulating layer and bias field applying layers. The second shield layer has a surface facing toward the first shield layer. This surface includes a first portion touching the top surface of the MR element and second portions located on both sides of the MR element, the sides being opposed to each other in the direction of track width. A difference in level is created between the first and second portions such that the second portions are closer to the first shield layer than the first portion.