Formation of protective oxide scales is the main reason for the high oxidation resistance of TiAlN based coatings. Here the authors report on further improvement in the oxidation resistance of TiAlN by Ta alloying. An industrial-scale cathodic arc evaporation facility was used to deposit Ti-Al-Ta-N coatings from powder metallurgically produced Ti38Al57Ta5 targets. After oxidation in ambient air, a significantly reduced oxide layer thickness in comparison to unalloyed TiAlN reference material was observed. Energy-dispersive x-ray spectroscopy line scans and secondary ion mass spectroscopy depth profiling showed that the oxide scale consists of an Al-rich top layer without detectable amount of Ta and a Ti-Ta-rich sublayer. Transmission electron microscopy investigations revealed alpha-Al2O3, rutile-type TiO2, and anatase-type TiO2 as the scale forming oxides. Furthermore, the Ti-Ta-rich sublayer consists of a porous layer at the oxide-nitride interface but appears dense toward the Al-rich top layer. The improved oxidation resistance is explained by doping the TiO2 lattice by replacing Ti4+ with Ta5+ in the rutile lattice, which decreases the oxygen mass transport. This leads to reduced oxidation of Ti under formation of TiO2 at the oxide-nitride interface and is the reason for the excellent oxidation behavior of Ti-Al-Ta-N coatings.