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This paper reports, the application of Taguchi Design of Experiments (DoE) and ANOVA (Analysis of Variance) for finding the optimal combinations and analysis of the effect of individual layer thickness on the performance of SMR sensor. The optimum combination of design parameters and its performance as a sensor have been predicted with DoE and validated through the finite element modeling (FEM) simulation. The optimization has been done to achieve enhancement in coupling coefficient of SMR sensor. The best optimized thickness of metal electrodes, piezoelectric, sensing, insulation low and high acoustic impedance layers have been found to be 0.2µm, 2µm, 0.68µm, 0.3µm, 1.028µm and 1.008µm, respectively. The results of the present study show that for the optimized dimension of SMR structure, simulated values of coupling coefficient (K2eff), Quality factor (Q) and figure of merit (FoM) are 0.075596 (or 7.5596%), 1171.6 and ≈ 88, respectively. Optimized structure performance has been compared with the existing SMR sensors and it is observed that proposed SMR exhibits performance enhancement in terms of FoM by ≈ 37 %.