It depends. Since you are a California Resident, you do pay taxes on all of your income regardless of where you earned it. However, California will give you a credit for the taxes you pay to another state (in this case, Arizona) on that same income so that you are not over-taxed.
To reflect this in TurboTax, you will prepare the Arizona nonresident return first in TurboTax. This will allow the program to calculate the credit. You will verify that the credit has been calculated and applied to your California resident return in the Credit for Taxes Paid to Another State screen.
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