The signal‐to‐noise ratio of the perfusion image (SNRperfu) in a spin‐tagging experiment is shown to depend on both the degree of spin labeling (α) and the signal‐to‐noise ratio of the proton density images (SNRimage) used to calculate the perfusion image. When a single radiofrequency (RF) coil is used for both spin tagging and magnetic resonance (MR) imaging, magnetization transfer (MT) effects decrease SNRimage, and therefore SNRperfu, by an amount that depends on the strength B1 and offset Δω (determined by the gradient strength Gl applied during spin tagging) of the labeling RF pulse. It is shown that by optimizing B1 and Gl, it is possible to reduce MT effects and thus increase SNRimage, while leaving α unchanged. As a result, SNRperfu will be improved. An equation for calculating perfusion under general conditions of such reduced MT effects is derived and shown to give perfusion rates that are independent of the strength and offset of the labeling RF irradiation. Magn Reson Med 41:563–568, 1999. © 1999 Wiley‐Liss, Inc.