A finite element analysis of the static loading of rack-pinion drive is performed. The complexity of this problem becomes evident especially at gear teeth and rack-pinion drive due to the significant effect of kinematics and geometric conditions and manufacturing accuracy for finding the operating and critical stress which are relevant for checking the gear teeth operating capability. The geometry is modeled by plane stress elements with variable depth of 10, 11, 12 and 15 mm to find the optimal rack depth that gives minimum stress concentration factor. Tooth failure is predicted when the tensile strength is exceeded in the gear tooth root. The results show that the stress concentration factor “Kt” varies along the rack flanks and displays its maximum value at the point of contact between the rack tooth flank and tooth root. Also, the rack depth ratio affects significantly the stress concentration factor “Kt”, where depth ratio of 2.2 shows the minimum stress concentration factor.