This paper presents vector magnetic properties of an electrical steel sheet (ESS) employed for electric machine and iron loss analysis considering the vector magnetic properties of the ESS. The vector magnetic properties of the ESS are measured by using a two-dimensional single sheet tester and modeled by an E&S vector hysteresis model to be applied to finite element method. The finite element analysis considering the vector magnetic properties is applied to iron loss analysis of a three-phase induction motor model, and the influences of the vector magnetic properties on the iron loss distribution are verified by comparing with numerical results from a typical B-H curve model.