Yes. You will have to file a non-resident California tax return and report the income and expenses from your rental property located in California. You will also have to report the income on your Virginia tax return. Virginia will give you a credit for the California income tax that you pay. The credit will be limited to the amount of Virginia tax assessed on the same income; therefore, if tax in Virginia is less than California, you won't receive a credit for the entire amount paid to California.
