According to the State of California:
"For taxable years beginning on or after January 1, 2002, if you are a nonresident or a part-year resident, you determine your California tax by multiplying your California taxable income by an effective tax rate. The effective tax rate is the California tax on all income as if you were a California resident for the current taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by that income.'
So yes, a taxpayer living in Nevada that earned 2,000,000 in Nevada and realized a 300,000 Capital gain for selling a rental in California will pay more California State Tax for that Capital Gain than a taxpayer living in Nevada that earned 30,000 in Nevada and realized a 300,000 Capital gain for selling a rental in California.
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