The state may lower income taxes and instead find revenue elsewhere in an effort to sidestep portions of the new federal Republican tax law seen as disproportionately costly to New Yorkers, Gov. Cuomo announced during his State of the State address.

The overhauled federal tax code approved by President Trump and Congress curbs deductions for paying state and local taxes, so Cuomo is considering reducing the income tax and instead funding more of the state through payroll taxes, the cost of which is shared by workers and employers and which are still deductible.

“We are developing a plan to restructure our tax code to reduce reliance on our current income tax system and adopt a statewide payroll tax system,” Cuomo said.

Closing the so-called carried interest loophole would also generate more income for the state he said. Doing so would charge hedge fund managers higher rates for revenue they generate — taxing them at or close to the personal income rate, rather than the lower capital gains rate.

Cuomo, a rumored 2020 presidential contender, slammed President Trump and the GOP for limiting deductions for state and local taxes on federal tax returns — including the property tax levy — to a combined $10,000. That disproportionately affects New Yorkers who pay higher state and local taxes while other states do not.

“Our federal government has hurt our state’s economic position both nationally and internationally. By taxing our state and local taxes, they made us less competitive and they are helping other states at our expense,” Cuomo said.

“This federal government is the most hostile and aggressive toward New York in history. It has shot an arrow at New York’s heart.”