Understand that the resident state, taxes you on all income from all sources, regardless of where it's from. But the resident state will also "take into account" taxes paid to another state. Sometimes it will be a dollar for dollar reduction in the resident state tax, for taxes paid to the non-resident state. Sometimes it's different.
Also note that for long term residential rental property, it is not common to actually show a taxable profit. When you add up the common deductions of mortgage interest, property taxes, property insurance and add that to the depreciation you are required to take, that will almost always exceed your total rental income for the year. Add to that the other allowed rental expenses (repairs, maintenance, etc.) and you're practically guaranteed to show a loss on the SCH E line 26.
So not only will you not pay taxes to the non-resident state, you also won't pay taxes on that specific rental income to the resident state either. Now this is not always true. But for more than 99% of the time, it is.
