A system for detecting wear in an encoder used to sense a wheel speed in a vehicle comprises a sensor configured to sense the wheel speed of the vehicle by sensing a magnetic material on the encoder coupled to a wheel of the vehicle. A noise detection module includes a plurality of noise detectors configured to detect noise in a wheel speed signal generated by the sensor. An estimation module is configured to estimate a state of health of the encoder based on the noise detected in the wheel speed signal and to generate an alert in response to the state of health indicating that an amount of wear on the encoder is greater than a predetermined threshold. A filter is configured to filter the noise in the wheel speed signal and to output a filtered wheel speed signal to a control system controlling stability of the vehicle.