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In this paper, we propose an improved localization system for an indoor mobile robot using RFID (Radio Frequency IDentification) system and wheel encoders. Nowadays, RFID technology is widely used in the robot field. We investigate recent RFID localization system based on (passive) tag-floor for mobile robot, and analyze the problems and limitation of previous researches. First, RFID and wheel encoder localization systempsilas uncertainty, which may result in inaccurate location data, is modeled. And then, the algorithm for estimating each uncertainty is proposed for localization. Finally, a proposed algorithm successfully demonstrated through simulation experiments conducted under certain assumption.