If you live in one state and work in another state; that income is subject to taxation by both states. This is how it works in all states (in most cases): You file a nonresident return for the state you worked in, reporting only the income you earned there. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. Since TX does not have an income tax, you do not have a non-resident return to file. But you still have to pay tax on that income to your home state (CA).
