It brings the curtain down on a 20-year professional career for the 37-year-old.
The explosive batsman, whose decision comes three years after his retirement from international cricket, will not now take part in the inaugural Euro T20 Slam starting this month, where he was to represent Glasgow Giants as an icon player.
"It's with pride and satisfaction that I am today announcing my retirement from all cricket," McCullum said on social media.
"My style... has always been full noise, full throttle... unfortunately, the sacrifices needed and commitment required to play that type of cricket have now become too great."
McCullum played in the last of his 101 tests against Australia at Christchurch in February 2016, where he hit the fastest century in the format (54 balls), finishing his career with 6453 runs including 12 tons and 31 half-centuries.
His final one-day international was against the same rivals earlier that month as he signed off with 6083 runs from 260 matches. He played 71 T20 internationals scoring 2140 runs.
It was in the shortest format that McCullum was most sought after and he represented a number of Indian Premier League teams including Chennai Super Kings and Kolkata Knight Riders.
He also played for Brisbane Heat in Australia's Big Bash League, Lahore Qalandars in the Pakistan Super League, Trinbago Knight Riders in the Caribbean Premier League and Toronto Nationals in Canada.
"I owe it to myself and the teams I represent to close that chapter rather than just plough on regardless of what I know to be true," McCullum added.
"I look back with pride over the way I've played the game and what I've achieved... in T20 cricket, I've enjoyed so many varied challenges, I can leave the game knowing I left no stone unturned."
McCullum's Nationals, who are fourth in the table, take on Montreal Tigers on Wednesday. The top four reach the knockout stage with the final being staged on Sunday.
