We have investigated 3d electronic and magnetic states of the Mn ion in IV–VI diluted magnetic semiconductor Ge1−xMnxTe using soft x‐ray absorption spectroscopy (XAS) and magnetic circular dichroism (XMCD). The rich structure in XAS and XMCD spectra suggests that Mn has highly localized state. The XMCD intensity is good agreement with the spontaneous magnetization of the sample. The contribution of the spin and orbital angular momenta to the magnetic moment is examined using the sum rules.