Yes.
Oregon has a special exemption to Oregon military residents that are stationed outside of Oregon that treats them as nonresidents even if they can be taxed in other states because they are Oregon residents. This applies to Oregon resident spouses as well see the following from the Oregon
Department of Revenue website.
Residents stationed outside Oregon
You're a nonresident for Oregon tax purposes if you meet all of the following requirements:
- You didn't have a permanent residence in Oregon for yourself or your family during any part of the tax year.
- Your permanent residence was outside Oregon during the entire tax year.
- You spend less than 31 days in Oregon during the tax year.
You'll only owe Oregon tax if you had income from another Oregon source.
Oregon resident spouse living outside of Oregon
Do you qualify to be treated as a nonresident because you meet the special case Oregon resident requirements? If so, you aren't taxed on your out-of-state wages or self-employment income, even if the other state can't tax you because of the federal Military Spouse Residency Relief Act. You don't have to file unless you had Oregon tax withheld or other Oregon source income, such as rental income or retirement pay. If you file, use
Form OR-40-N
