Sort of. You will be taxed federally and will have to fill out a nonresident form for Pennsylvania. Once your Pennslyvania return is completed with the income from your rental condo, this income will also be reported on your New Jersey return, but you will receive a credit of the tax you paid in Pennsylvania.
So if PA charges $200 in tax and NJ would have charged you $300 for the same income from the condo, you would pay PA 200 and owe NJ an additional $100.
If PA charges you $200 and NJ would have only charged you $100, you only receive a $100 credit in NJ even though you paid PA $200. Basically, you end up paying the tax rate of whichever state has the higher tax on this type of income.
In order for the credit to be properly applied to your resident NJ return, you will want to fill out the nonresident PA return first.
