A lawsuit by New York and three other high-tax states that would have scuttled a key part of President Donald Trump's revamp of the nation's tax system was axed by a federal judge.

In a ruling issued Monday, U.S. District Judge Paul Oetken in Manhattan dismissed a lawsuit by state officials in New York, Maryland, New Jersey and Connecticut aimed at nixing the $10,000 cap on federal deductions for state and local taxes.

In particular, the states failed to prove that Congress exceeded its constitutional authority in approving the $10,000 cap on SALT (state and local taxes) deductions, or that they were victims of "targeted coercion" by the Trump administration and its allies on Capitol Hill.

Under the old tax system, taxpayers could claim unlimited deductions for state and local taxes on their federal returns, with New Yorkers having claimed on average $22,169 in 2015, the Tax Policy Center noted.

Taxpayers in New York will pay an additional $121 billion through 2025 due to the cap, according to the lawsuit filed last year by the four states in federal district court.