Texas ranks 34th in the nation for the amount they spend over a lifetime on smoking. Credit: Shutterstock

Imagine investing the money spent on cigarettes over the course of a lifetime, instead of smoking it all away.

According to a new study, the real monetary cost of a lifetime of smoking adds up to nearly $3.5 million in lost earnings and investment potential in Texas, which ranked 34th in the nation.

Smokers living in the state of New York spend the most on cigarettes thanks in part to the state tax of $4.35 per pack, according to the WalletHub report “The Real Cost of Smoking By State.” North Carolina, where much of the nation’s tobacco is grown, had the lowest cost of smoking because of a low tax of only 45 cents per pack.

WalletHub analysts measured the cost by using the cost of a pack of 20 cigarettes daily with local, state and federal taxes included, from the age of 21 until the average age of death of smokers at 69. They then calculated what that money would do if invested at a rate of return tracking with the S&P 500.

To that number, they added additional out-of-pocket health care costs incurred by smokers, higher homeowner insurance rates and a pay cut of about 18 percent, which another study found was the average amount less smokers made because of the growing stigma of smoking and the perception of lower productivity. The full report is here along with the methodology.

“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, writes WalletHub analyst Chip Lupo. “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.”

The report was done to encourage tobacco users in the U.S. to kick the habit for their physical and financial health, WalletHub said.

New York ranked in the top spot for estimated economic loss per smoker at $5.43 million, while Washington, D.C., came in second with $5.37 million. Not far behind are Maryland, Massachusetts and Rhode Island.

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This article appears in Jan 8-21, 2025.