A sensor package includes a magnetic field sensor having first and second surfaces, the first surface being a sensing surface of the magnetic field sensor, a shield structure spaced apart from the magnetic field sensor, and a spacer interposed between the magnetic field sensor and the shield structure. The shield structure is configured to suppress stray magnetic fields in a plane parallel to first and second axes that are parallel to the sensing surface of the magnetic field sensor and perpendicular to one another. The shield structure may include a continuous sidewall having a central region, the spacer being surrounded by the continuous sidewall and the sensing surface of the magnetic field sensor being positioned outside of the central region. A system includes an encoder magnet and the sensor package, with the sensing surface of the magnetic field sensor facing the encoder magnet.