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Addition of tin in 3% Si steel is a method to improve magnetic properties since tin in steel is known as an element that segregates at grain boundaries, inhibits grain growth and has a dragging effect on grain boundary movement. However, tin is generally known as an element that has a harmful effect on surface coating properties. The oxide subscale formed on the decarburization annealing of a 3% Si steel containing tin was investigated by SEM, EDS, GDS and FTIR. The forsterite film was evaluated by SEM, EDS and GDS. The higher tin content decreased thickness, oxygen and fayalite/silica ratio in the subscale and resulted into a discontinuous forsterite film with poor oxidation resistance. After secondary coating the samples presented a reddish color due to the formation of iron oxide and poor dielectric property.