Magnetic alloy powder for a permanent magnet contains: R of about 20 mass percent to about 40 mass percent (R is Y, or at least one type of rare earth element); T of about 60 mass percent to about 79 mass percent (T is a transition metal including Fe as a primary component); and Q of about 0.5 mass percent to about 2.0 mass percent (Q is an element including B (boron) and C (carbon)). The magnetic alloy powder is formed by an atomize method, and the shape of particles of the powder is substantially spherical. The magnetic alloy powder includes a compound phase having Nd2Fe14B tetragonal structure as a primary composition phase. A ratio of a content of C to a total content of B and C is about 0.05 to about 0.90.