Starting from the rotating beam finite element in which the interpolating shape functions satisfy the governing static homogeneous differential equation of Euler-Bernoulli rotating beams, we derived new shape functions that satisfy the governing differential equation which contains the terms of hub radius and setting angle. The shape functions are rational functions which depend on hub radius, setting angle, rotational speed and element position. Numerical results for uniform and tapered cantilever beams with and without hub radius and setting angle are compared with the available results. It is shown that the present element offers an accurate method for solving the free vibration problems of rotating beams.