A new modeling technique is introduced for on-line sensor time constant identification, both for the resistance temperature detector (RTD) and for the pressure sensor using power plant operational data. The sensor's time constant is estimated from a real characteristic root of the fitted autoregressive moving average model The RTD's time constant values were identified to be 8.4 s, with a standard deviation of 1.2 s. The pressure sensor time constant was identified to be 28.6 ms, with a standard deviation of 3.5 ms.