This paper is focused on a novel design of stepped diaphragm for MEMS capacitive pressure sensor used in tire pressure monitoring system. The structure of sensor diaphragm plays a key role for determining the sensitivity of the sensor and the non-linearity of the output.First the structures of two capacitive pressure sensors with clamped square flatdiaphragms, with different thicknesses are investigatedand their sensitivity and non-linearityare compared together.Finally for increasing the sensitivity and linearity,anew capacitive pressure sensor with a stepped diaphragm is introduced. A numerical solution for determination of theaccurate sensitivity of the sensor is presented.The results show that the sensitivity of the sensor is increased from 0.063 fF/KPa with flat diaphragm to 0.107 fF/KPa with stepped diaphragm and also the non-linearity is decreased from 2.37% to 1.857%. In this design, the sensor sensitivity and output linearity are increased simultaneously.