Barium hexaferrites (BaFe12-xO19) with iron deficiency (x = 0, 0.4, 0.8, 1.2, 1.6, 2) were synthesized by sol–gel method and then sintered at 1050 °C for 4 h. X-ray diffraction and Rietveld refinement analysis confirms single-phase hexagonal structure belonging to \(P{6}_{3}/mmc\) space group. Iron (Fe) ion deficiency introduced in the barium hexaferrite causes no structural distortion; however, the grain size was found to increase from 196 to 433 nm. X-ray photoelectron spectroscopy studies show presence of Fe2+ ions with Fe3+ along with oxygen defects, and the presence of metal–oxygen bonds was confirmed using Fourier transform infrared spectroscopy. Highest saturation magnetization and coercivity were observed for iron deficiency with x = 0.4 and x = 2. Deficiency in iron ion sites results in change in Fe2+/Fe3+ ratio, causing possible variations in the site occupation and disruptions in the local exchange interactions, which induce easy rotation of spins attributing to decrease of coercivity with sustained magnetization.