Texas Smokers Face $3.94M Lifetime Costs, Rank Third Nationally

While smoking is widely understood to pose health risks, the habit also carries steep financial consequences. Each year, tobacco use claims nearly half a million lives in the U.S. and remains the leading cause of lung cancer, according to the American Lung Association. Even nonsmokers can’t avoid the consequences. Since 1964, over 20 million people in the U.S. have died of smoking-related diseases — including 2.5 million nonsmokers who fell ill from secondhand smoke exposure alone.

When accounting for the economic and social impacts, smoking costs the country more than $600 billion in medical expenses and lost productivity each year. As of 2022, the Centers for Disease Control and Prevention estimated 49.2 million — nearly one in five — U.S. adults engaged in tobacco use.

To dig deeper into the financial reality of smoking, WalletHub analyzed the per-person cost across all 50 states and the District of Columbia. The study determined both annual costs and lifetime costs, examining factors such as the annual cost of a pack of cigarettes per day, health care expenditures, income losses and other costs associated with smoking and exposure to secondhand smoke.

"Smoking has greatly declined in the U.S. in recent decades, but nearly 50 million people still use tobacco products. Buying cigarettes for your entire adult life can cost you hundreds of thousands of dollars, but that number pales in comparison to the hidden costs of smoking," WalletHub analyst Chip Lupo said. "Over a lifetime, smokers lose out on millions of dollars they could have made if they’d invested the money they spent on tobacco. Smokers also tend to have lower wages, higher health care costs and higher home insurance premiums."

Texas ranks No. 3 in the nation for smoking-related penalties. While the Lone Star State ranked No. 28 for the highest total costs per smoker, it ranked significantly higher in a subcategory. WalletHub’s analysis includes “other costs per smoker” based on two metrics:

• Home insurance penalties: Nonsmokers may be offered a homeowner’s insurance credit between 5% and 15%, per the Insurance Agents & Brokers of America. WalletHub used a 11.1% increase in the average homeowner’s insurance premium in each state to determine the penalty for homeowners who smoke.
• Secondhand smoke exposure: Smokers aren’t the only people affected by the habit. WalletHub found the cost of secondhand smoke exposure in New York, then calculated the expenses in other states according to their numbers of smokers and nonsmokers.

Costs over a lifetime in Texas

• Total cost per smoker: $3,942,385
• Out-of-pocket cost (rank): $165,739 (29)
• Financial opportunity cost (rank): $2,903,224 (29)
• Health care cost per smoker (rank): $191,846 (37)
• Income loss per smoker (rank): $659,163 (22)
• Other costs per smoker (rank): $22,413 (3)

Costs per year in Texas

• Total cost per smoker: $82,133
• Out-of-pocket cost (rank): $3,453 (29)
• Financial opportunity cost (rank): $60,484 (29)
• Health care cost per smoker (rank): $3,997 (37)
• Income loss per smoker (rank): $13,733 (22)
• Other costs per smoker (rank): $467 (3)

Texas' ranking dropped six places from 2025. However, last year’s ranking appears to be an outlier. The state ranked No. 29 in 2024 and No. 26 in 2023.

10 states with highest smoking costs, 2026

Here are the 10 states with the highest total cost per smoker in 2026:

1. District of Columbia: $5,863,664
2. Maryland: $5,843,123
3. New York: $5,788,994
4. Connecticut: $5,505,490
5. Rhode Island: $5,473,821
6. Massachusetts: $5,360,623
7. Hawaii: $5,076,818
8. Washington: $5,055,862
9. Alaska: $5,054,561
10. New Jersey: $5,001,299

10 states with lowest smoking costs, 2026

Here are the 10 states with the lowest total cost per smoker in 2026:

1. Mississippi: $3,384,149
2. North Carolina: $3,392,493
3. Missouri: $3,422,674
4. Alabama: $3,467,538
5. Tennessee: $3,468,310
6. Kentucky: $3,505,557
7. West Virginia: $3,512,274
8. South Carolina: $3,528,443
9. North Dakota: $3,556,248
10. Georgia: $3,574,943