Tait, who last played for Australia in January 2016, said he realised that age was catching up with him.
"I honestly wanted to play a couple more years, whether it was over in the UK or here," the 34-year-old, who recently acquired an Overseas Citizen of India (OCI) card, was quoted as saying by cricket.Com.Au.
"I knew it was going to be difficult getting older to compete with the young blokes. I'm 34 years old and I suppose when you're not contributing on the field as much as you'd like to, it's time to finish up."
His last competitive outing came for Hobart Hurricanes during the 2016-17 Big Bash League.
Tait made a promising Test debut during the 2005 Ashes by taking three wickets in England's first innings at Nottingham.
He ended up playing only three Tests in his 15-year career, besides featuring in 35 ODIs and 12 T20 Internationals.
He was an integral part of Australia's victorious campaign in the 2007 World Cup in the West Indies.
Tait said he made the retirement decision after an ordinary showing in Big Bash.
"Pretty much getting left out of the side or not being able to play because of my elbow, either way there's no point going on with it.
"I knew during the Big Bash that I was going to finish up. The elbow has pretty much gone off a cliff now, it's done and dusted.
"It would have been nice to play another year maybe, but there's no point getting more surgery and play when I'm 35 when I'm probably not up to it anymore," he added.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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