All states have different laws, and different types of income is taxed differently,
but for simplicity
If you are a resident of Arizona and a NON-resident of California,
you will pay the 10% California tax on the California income
You will pay 5% Arizona tax on ALL your income HOWEVER Arizona will give you a credit for the tax you paid on the 200,000 to California HOWEVER Arizona will calculate that credit on their 5% tax rate, not California's 10% tax rate.
So if you paid CA 20,000 on 200,000
You will pay AZ 25,000 on 500,000 and get a credit of 10,000 for the 200,000 for a total AZ tax of 15,000.
So total tax for both states, 35,000
(Has it all been CA, tax would be 50,000)
(Had it all been AZ, tax would be 25,000)
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