The invention relates to low-carbon ferrite soft magnetic stainless steel and a production method thereof. The steel is prepared from, by mass, smaller than or equal to 0.03% of C, 2.5%-3.5% of Si, smaller than or equal to 0.5% of Mn, smaller than 0.03% of P, smaller than 0.03% of S, 13.5%-15.0% of Cr, smaller than or equal to 0.6% of Ni, 0.2%-0.7% of Mo, smaller than or equal to 0.15% of V, smaller than or equal to 0.1% of Ti, smaller than 0.020% of N and the balance Fe and unavoidable impurity elements. The production method comprises the steps of molten iron dephosphorization, AOD furnace smelting, LF furnace refining and continuous casting. The stainless steel has good corrosion resisting performance, the using category of soft magnetic products is greatly widened, and pollution, caused by frequent processing, to the environment is reduced. In the ferrite stainless steel, the C content is further decreased, the content of Si element is increased, the welding performance and soft magnetic performance of materials are improved, and the low-carbon ferrite soft magnetic stainless steel is used for making vehicle ABS controls and solenoid valve components in household appliances.